In the realm of currency trading, it is a well-known fact that most retail traders fail. Failure rates as high as 95% are mentioned in certain papers. What, therefore, distinguishes the select few?
Managing risk requires you to figure out how likely it is that your trading strategies will succeed. A forex trader must understand both technical and fundamental analysis to do that.
In addition to knowing the potential psychological price trigger points which may be determined with the aid of a price chart, you will also need to comprehend the characteristics of the market in which you are trading.