Risking and managing money
A vital aspect of risk is determined by how much trading capital you have available. Risk per trade should always be a small percentage of your total capital. A good starting percentage could be 2% of your available trading capital. So, for example, if you have $5000 in your account, the maximum loss allowable should be no more than 2%. With these parameters your maximum loss would be $100 per trade. A 2% loss per trade would mean you can be wrong 50 times in a row before you wipe out your account. This is an unlikely scenario if you have a proper system for stacking the odds in your favor.
We are speculating in forex markt and speculating is not gambling. The difference between gambling and speculating is risk management.
Associate with money management that is the process of budgeting, saving, investing, spending or otherwise overseeing the capital usage of an individual or group.