Oh Crap! - Rob Booker

4 Oh, Crap! Page 4Why it happened: Reason #1You risked too much on one or more trades.________________________________________You probably started trading currency for the same reason I did: to make money. Whilethat’s a worthy goal, and one that you’re likely to reach, it’s just not wise to try and make ayear’s worth of profits in one trade.Most of us, at one time or another, have risked 50% or more of our account on one ormore trades. Most of us try that on our demo accounts, and then we start to feel invincible(look! See what I can do! I can double my money in just a week!). Of course, this led you totry something similar in your live account. That was a bad idea (but you already know thatnow).Solution: Never risk more than 1% of your account on a single trade. Preferably less.This is a money-management solution. If you don’t put a lot of money on the roulettetable, you can have a lot of your money taken off the roulette table.