You should give utmost importance to proper money management in your trading as a currency trader. Many learn a few forex trading strategies and jump into live trading. Most traders don't give much time to money management. When they lose a good portion of their equity, they realize the importance of money management. You don't need to do this.
For you as a forex trader, the most important thing is to develop trading discipline in yourself. Discipline is the ability to plan your work and work your plan. You should give your trade the time to develop. You need not hastily take yourself out of the trade just because you are uncomfortable with the risk.
Even after you have suffered a loss, discipline is the ability to continue to trade your system. All successful traders are highly disciplined traders. When they don't achieve immediate success, many traders become disappointed too soon! The most important quality a trader can possess is persistence.
Those who apply their system haphazardly or quit too soon, do not trade in the markets enough to allow their system to produce the wins they are looking for. You need to develop persistence. Force yourself in the beginning to do everything according to the rules of your trading system.
Learn to follow trading rules and a trading system consistently and persistently. The proper application of trading rules is important consistently and persistently for becoming a successful trader. Applying trading rules properly is also one of the most difficult to learn. The problem comes when you as a trader try to analyze the markets initially. Study of past trades is very simple and very easy. You have the power of hindsight with you. It is much easier to recognize direction, entry, exits in examples of past trades.
But when you trade live, it is always much more difficult recognizing opportunity in the now. You need to develop good trading rules and a good trading system. Let me tell you, following trading rules and a trading system is no easy task. It requires a lot of discipline on the part of the trader. You need to obey the trading rules even when the initial response or the opening trade does not work out as anticipated. Just remember, trading rules are not always perfect. Even good rules will fail you at times.
You should learn to accept losses. Losses are going to happen in the course of trading. Since no trading system is 100% accurate. Even the flawless application of a trading system will create some losses. Develop the ability to admit your losses.
Losses can occur due to two reasons. The first major reason is when a trader fails to follow the tested rules and guidelines of a trading system due to lack of discipline. The second major reason is when the trading system fails due to the 10% unexpected changes in the market conditions.
Always, always use stop losses in your trading. A stop is a market order placed some pips away from the entry price in the event that market prices turn and move dramatically opposite from the anticipated direction. The idea behind the stop is to prevent a loss from running away too far.