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The key to successful trading is risk management

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By Gery Nagy, optionsrules.com

We discussed in the previous article that the risk graph of the stock market involves unlimited risk. That means despite using super good stop levels, there might be days when the market skips your limit order.

Or, your market order could be executed at a price you did not expect. Consequently, a precise risk management cannot be achieved. Those who trade on the Forex market may groan now because this is not strictly true for them. Yes, the Forex market is not characterized by a gap up, gap down, therefore the STOP level can be more easily planned, as it is usually executed where we planned it.

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