In Forex Trading Risk Management

  In trading on the forex trading generally or in particular there is always a risk of loss. Risk can not be avoided but can be eliminated is by way of applying risk management.
Stop Loss and Limit Profit
Create a limit to how far you are willing to bear the losses and make a restriction to realize profits.
Stop Loss function to avoid greater losses if price movements were not as we expected and are likely to further against our expectations. At a certain level where we want to bear the losses and put a stop loss at that level then our position will automatically be closed and that further harm can be prevented.
Profit Limit function to determine profit targets, so that we achieve a time when prices have moved in the value we expect then our position will be closed automatically. This is useful if the price level is reached it turns out that we want to turn the advantage of price movements has been successfully secured.
Cut Loss and Swicthing
If we know that we incorrectly predicted price movements, for example if you take buy position was the price tends to go down then we can close the transaction by way of cut loss of the bear greater losses, especially for those of you who do not give a limit to the stop loss. After that we do the switching by taking a sell position.