How to Trade Forex Without Losing Money: Complete Risk Management Guide

Rule 1: Never risk more than 1-2% per trade. If you have $10,000 account, maximum loss per trade is $100-200. This means if you're wrong 10 times in a row, you still have 80-90% of capital intact. Most beginners risk 10-20% per trade and blow accounts after 5-10 losses. Use calculators to determine position size based on stop loss distance.

Rule 2: Always use stop losses without exception. Place stops at technical levels where your thesis is invalidated, not arbitrary percentages. If support breaks, you're wrong - exit immediately. Never move stops further away or remove them hoping price comes back. This discipline alone prevents most account blow-ups.

Rule 3: Risk-reward ratio minimum 1:2 or better. If risking $100, potential profit must be $200+. This means you can be wrong 50% of time and still profit. Many beginners take quick profits at 1:1 while letting losers run - this guarantees long-term failure. Join forex programs with live mentorship to learn proper trade management.

Rule 4: Limit daily losses and stop trading. Set maximum daily loss of 3-5% of account. If hit, stop trading for the day. Revenge trading after losses leads to irrational decisions and larger losses. Professional traders protect capital during bad streaks and capitalize during good runs.