Start with affordability
Consider the impact of a loss before thinking about a potential gain. Keep essential expenses separate from speculative activity and consider independent advice when unsure.
Assess the whole account
Several positions can respond to the same underlying event. Count related exposures together rather than assuming different symbols provide diversification.
Plan for difficult conditions
Consider widening spreads, price gaps, outages and reduced liquidity. Review how you would manage positions if your usual device or connection were unavailable.
Keep a review journal
Record the reason for a trade, position size, planned exit and actual outcome. Use the journal to identify repeated process errors; it cannot guarantee a profitable strategy.
Frequently asked
Does a risk-management plan guarantee profit?
No. It helps structure decisions but cannot prevent every loss or ensure returns.
Further reading
CFTC: Foreign currency trading risks ↗External educational references do not imply endorsement, affiliation or regulation of QB Capitals.
Leveraged forex and CFDs involve significant risk of loss. Demo results do not predict live performance. Understand the risks ↗