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Hello everyone

Today I want to discuss with you a serious issue of risk management.
Surely each of you has heard about the 1% rule: do not risk more than 1% of your capital in one transaction.
The rule is well-known and quite useful, it is better to lose 1% than the entire capital.
Beginners, although they know this rule, rarely follow it and this is a big problem.
I think this is the main problem of beginners, people think that the problem is strategy, but FOREX trading is a game of probability.

The Probability Game
Not every trader understands what probability is.
Most are afraid to study this question because they are afraid of long mathematical formulas.
Do not be afraid, you need to study!
And even if you don't want to do it, there is an easier way.
In simple words: probability is something that happens more often than usual, but not always.
Not clear?
Let's take any pattern. By the method of research and observations, experienced traders decided that this pattern is often found on the market and it can be traded, while trading this pattern does not promise 100% results.
This means that if you trade this pattern infinitely many times, you will be in the black at a distance.

At a distance…
We're getting close.
Distance is a series of transactions.
Whatever pattern you choose, whatever strategy you have, you need distance, you need to make a series of trades so that the pattern works out in order to understand whether this strategy is really profitable.
But if you risk everything or almost everything in one trade, what distance will you have?
Exactly.
Without a series of trades, you will not be able to profit from the pattern, without risk management and following the 1% rule, you will not be able to make a series of trades, because your capital will disappear very quickly.

Do you think that 1% is too little?
Professional traders risk an even smaller percentage in transactions.
The goal is to stay in the game as long as possible and that's when you'll be super profitable.
Traders who risk less than 1% in transactions get huge profits at a distance, so don't worry about profits, think about losses, how to reduce and avoid them.

Demo account
The biggest advantage of a demo account, in my opinion, is that it is free and every trader can train to follow risk management for free and as much as he wants.
I advise you to set aside a month for trading on a demo account with the right risk management.
Set a goal not to open trades with a risk of more than 1%.
And no matter what your strategy is, just follow the rule.
I assure you, you will see the difference.
Analyze, study, train and victory will find you.

good luck!

Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻