Understand and Define Risk Tolerance:
Before engaging in forex trading, it is important to understand and define your risk tolerance. Risk tolerance refers to the level of uncertainty and potential losses an individual is comfortable with. By assessing your risk tolerance, you can establish appropriate risk management strategies and position sizing that align with your financial goals and psychological resilience.

Forex trading offers tremendous opportunities for profit, but it also carries inherent risks. Effective risk management is crucial for forex traders to protect their capital, preserve their trading accounts, and achieve long-term success in the market. In this article, we will explore essential risk management techniques that forex traders can employ to mitigate risk and enhance their trading performance.