Forex Risk Can Be Predetermined; Reward Is Unpredictable

Before entering every trade, you must know your pain threshold. You need to figure out what the worst-case scenario is and place your stop based on a monetary or technical level. Every trade, no matter how certain you are of its outcome, is an educated guess. Nothing is certain in trading. Reward, on the other hand, is unknown. When a currency moves, the move can be huge or small.

Anthony DiChi at TradeCurrencyNow,
America’s Forex News and currency information source.