As you know risk in FOREX?

It seems incredulous but sometimes the simplest things can be (for some) the most difficult to accept and understand. When one continues to progress in this exciting world of trading is to many people who have no idea of ​​how to manage an account either demo or worse a real one. For them this article and I hope I never forget.     The forex trading should be SIMPLE say several scholars. Undoubtedly those who are complicated because they cannot operate or have not learned well. Many when placed in trading first thing they do is PLAY with your demo account doing meaningless operations and worse thinking that an account is like going to the casino and gamble to gamble becomes his emblem. Start risking amounts that have the nothing to do with the reality of a live real account and constant deception.      You Think Survey When many start first thing they do is to open demo accounts $ 100,000 or $ 500,000 to "practice". Practice has the nothing wrong, wrong to think that by the grace of the Holy Spirit the novice trader is doing the right things. By having a large initial amount as the novice trader operations also makes "big" and there begins the great fallacy. Win or loose (that's secondary) capital mismanagement will destroy it sooner or later. Weather abusing the number of lots or operating many pairs at once the end novice trader risking more than necessary. The grand finale is a way or another trader finish making this a "habit" and repeats the bad habits when trading a live account. Certainly many of the large losses that have futures traders, commodities, options, etc. is in large part because repeated bad habits from the time they operated with the demos (click for a moment thought an act of remembering what happened when real operating), the fact is that the trader falls back into a vicious circle. Do not forget that human often acts out of habit but this is fatal in trading. As the MBA in Stephen Covey in his book The Seven Habits of Highly Effective "as strings habits are very difficult to dislodge and sometimes we can never by our weak-willed." This applies to all friends, work, family and even for the forex.   An example. Imagine a trader who opens an account $ 10,000 and has a habit of risking 10% of total capital on each trade. Suppose also (it is actually very possible) that the inexperienced trader has lost his 10-continuously in early trading. After the tenth operating the account happened to be at less than 35% of the initial capital.   Alexander Elder (extraordinary scholar forex) is a phrase that I feel great, "the first thing to learn a trader is to survive and then be a constant and consistent winner. His sentence brings everything a good book trading capital management can hold. See:   When you start trading forex first thing you need to do is learn to respect the market and not let this what fulmine (as the vast majority of inexperienced happens). A trader cannot risk more than 2% of the total amount of your account. Just for a matter of survival. Eye, and talk about any type of account weather it is a standard mini or microcuenta. Regardless of risky maximum capital amount should not exceed 2%, just so you can STAND UP if you have a bad run of loosing trades. And believe me, a slump happens to the best trader in the world, it could happen to me too and will happen to you (at any time). Losing is part of this business and has to learn to live with it.     A trader risking only 2% of total capital that has for each operation, uninterrupted could loose up to 30 times and still maintain and almost 55% of your money. That is survival and that is to manage money wisely (despite having lost so monstrous). Now if someone looses it continually 30 times the minimum you should do is revise its strategy or study from the base (but did not explain how you can loose many times) but hey that is another matter. The truth is that this trader could still participate in the market and correct their mistakes. That is what capital management.   I know that many enter the world marveled at how quickly it returns can be filled and accessible than is the foreign exchange market, and several advantages over other financial markets, but they avoid saying is that the person who is learning trading should learn formerly    You believe it is easier to lift an account that is 35% of the initial capital?. Forget it is a daunting task almost impossible. However, this situation is common between traders who are just starting and unfortunately a constant product of ignorance (knowledge of trading) and lack of emotional control. And I am sure this must has happened at some point in life as a trader and if it does not happen that good this reading this article so that it never happens.   In my teaching experience I have had to learn forex traders who were trading riskier yet and at the end only managed to destroy their accounts in record time. Operators who risked 20% (and sometimes more) per operation. Look at the table below and imagine when these "risk takers" loose 10 times continually risking 20% ​​on each transaction they perform. Does not completely destroyed? Do not be surprised, this is bread, especially with people looking to learn the trading of self-taught and have no idea of ​​the word capital management.