Risks and Loses of a Forex Trading System

RISK
Unquestionably, don't risk more than 5% of your account balance on any trade. This means that the maximum Stop Loss on any one trade should not exceed 5 percent of your total account balance. Like for an instance, if you have a $1000 account, 5 per cent of $1000 is $50. This means that your maximum stop loss should not surpass50 pips ascertain you are trading one mini contract with a value of $1 per pip. I see new Forex traders every moment risking 20, 30, even 40% of their account on one trade. With that risk, and four losing trades in a row, you'll wipe out your account. You can't last long taking wild risks like that, and the psychological damage will be lasting. So minimize risk. Use 5 per cent  as a maximum risk threshold. Personally, I risk not greater than 1 to 3 percent on any trade. If you have a larger account, you must follow the same rule, no exceptions. No matter how veteran a trader you are, it's not unheard of to have 6-8 losers in a row. Not anyone loves it, on the other hand if you stick with a 1-3% risk limit, take morever be psychologically  prepare for it, it will roll off your back instead of breaking your spirit.  
LOSES
Many traders long for Van Helsing’s cross to raise when this hellish beast shows it soul-stealing teeth: Losing trades!  A new trader will often feel ashamed after getting a losing trade. He feels that he has made a sin and beats himself up over it.  Penance does bad in this life, so confess your trading sins, resolve to never commit sin, but do not scourge yourself.  Listen to the Truth:  Losing trades are part of the game and are to be generally expected. Forgive yourself, and move on, but don't give up.  It is the trading journey that overall will be correct, not each individual step.  So take every misstep.  Like a tenant paying rent to keep his store open, losses are part of the cost of doing business as a trader.
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