Stop losses. Also, don't over-utilize your leverage. There are many people living off forex, but most who try blow up because they don't manage their risk exposure.
I know there are people who make money out of forex but they are getting less and less in the longer time frame.
While the winners are %20 in a 3 months time frame, they are %0.22 in 3 years. You know why? Because they played too long.
Things really get messy with forex. Forex players will never agree with this but its gambling and definitely not a job.
You can say; there isn't a guaranteed job neither, people lose their jobs too. And that's where i get confused. A bit.
I guess it can be a job as long as you make money:)
i disagree practice makes you better i've been trading for 4 years taught my friends they left their jobs within a year.
the 20% probably get greedy and once you change your lifestyle you can't really afford losses and they take more risks thus they lose and then when they get desperate they make mistakes. my account has only grown stick to the rules follow risk management.
every 1 lot size you must have $1000 in your account. don't trade more. average currency moves around 300 pips daily that is $300 a day and that is without even taking a risk.
yesterday we made $760 and that was on two currencies only.
those that have played it long consider it joke making money they earn in the weekdays in the weekend they blow it all.
did you know MM's can see your margin level and stop losses. if your margin level low they will move markets to grab contracts. thus risk management.