In forex trading, there are several ways that traders can calculate risk tolerance and limit losses.
Stop-loss orders, trading on leverage, and using indicators—such as inside and outside bars and double top/bottom chart patterns—are just a few examples of how the best traders maximize profits and spot key trading opportunities.
The problem, however, is that most forex traders don’t know how to use these tools and strategies.
In this guide, we break down the fundamentals of risk management and explain how goal setting, leverage, and certain types of strategies and tools can help steer your overall trading strategy, allowing you to limit losses, calculate risk, and spot key opportunities.
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