One amateur takes a course in driving before he ever gets within the vehicle. He most likely makes it to the next town too, maybe after a few wrong turns, maybe with a couple scratches on the paintwork, perhaps a little late, but he arrives in the end.
And remember, that was the same automobile.
So what do we need from a currency trading tutorial and other forex courses? Just like with the drivers, knowing how to operate the system is only a small part of our coaching. Risk administration is what is most inclined to stop us from finishing up in the ditch. Let us take an example. Say you have a system that makes an average of 50 pips profit on winning trades and thirty pips loss on losing trades, including the spread. It’s obvious this is a good system.
But if you start out thinking you have a fifty percent possibility of success so that you can risk half of your funds on each trade, you’d be making a massive mistake. 50% winners doesn’t mean that every loss will be followed by a win and vice versa. There might be two, 3, 4, perhaps occasionally even 10 losses in a row. Or you could have five losses followed by a win followed by another five losses. Later, of course, it would even up and you would have a run where there were more wins; but if you were placing 50% or twenty percent of your account balance on each trade, you would be wiped out long before the wins started coming in. A better risk in this situation would be 5% or perhaps two percent. You can check this out against back tests, but always double the worst situation that you see as it is nearly certainly not the worst that would occur. Money management is something that needs to be learned by any noob trader. You can see from this tract why it is important to take a currency trading tutorial of some kind prior to starting trading.