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TTC Forex University – https://ttcfxuniversity.com/pre-launch-sale Risk management is a vital aspect of forex trading that involves …

Key takeaways from the Video:

  • The three key steps to risk management in Forex trading are:
    • Understanding your risk tolerance
    • Implementing stop-loss orders
    • Calculating your position size
  • Your risk tolerance is the amount of money you are willing to lose on a single trade. It is usually expressed as a percentage of your total account value.
  • A stop-loss order is an order to automatically sell your position if the price moves against you by a certain amount (the stop-loss level). This helps to limit your losses.
  • Your position size is the number of units of currency you are trading. It is determined by your risk tolerance, your stop-loss level, and the pip value of your currency pair.
  • There is a formula that you can use to calculate your position size: position size = risk tolerance / (stop-loss in pips * pip value).
  • There are also tables that you can use to look up your position size based on your risk tolerance, stop-loss level, and currency pair.
  • Once you have your position size, you can enter it into your order form when you place a trade.

I hope this is helpful! Let me know if you have any other questions.