Risk management is a very vital thing in the world of forex trading, but most beginner traders underestimate this, they prefer to learn trading techniques to get profit and ignore risk management. Though in forex trading, profit and loss are two things that cannot be separated as if two sides of the coin. Every transaction that we do always has the potential to experience loss even though we use good trading systems, because no one can predict the price direction for sure.
This is what makes experienced traders always prioritize risk management, because they know only with risk management, they can survive in the world of forex trading. Experienced traders always calculate the risk before making transactions, whether the risk is greater or smaller than the potential of its profits. If the risk is greater than the potential profit then they will not do the entry, they wait until the risk is smaller than the potential profit and the risk can be accepted by us.