You need to appreciate that one of the main differences between Forex experts and novices is that the former understands the concepts of risk and money management extremely well. You must learn how to utilize money management so that you can restrict your risk exposure for every position you open.

Consequently, you can then provide the optimum protection for your account balance if you learn to utilize these with skill. Sadly, many beginners exhibit poor trading psychologies that negatively influence their money management strategies leading to significant losses.

For example, novices allow their gut feelings and whims to dominate their trading decisions. In contrast, they should base their strategies on well-tested money management concepts that should ensure both excellent loss protection and achievable profit targets. Once you have accomplished this prime objective, only then should you consider other ideas and influences.

You must be always safe-guard against biting off more than you can chew. This is another psychological problem that novices suffer from that emulates from greedy aspirations. Many beginners fail to open positions with well-calculated targets.

You can avoid such difficulties by breaking all your trading objectives into well-defined goals and then confirming that each one has been accomplished before moving onto the next. For instance, you must understand that very few traders have the ability and knowledge to successfully manage multiple trading positions concurrently.

You must also ensure that should you receive special information concerning a currency pair that you do not become overconfident. This is because you could suffer serious fiscal losses if this material develops into nothing more than a hot rumor.

You need also to develop the skills to counter preferential bias. This psychological condition can stop you from objectively studying any new trading developments should they oppose your already selected path. You simply cannot overlook vital indications should Forex be selecting a course of action that does not agree with your chosen approach.

You must also realize that there is a significant difference between the fear of losing and risk aversion. You must learn to view the acceptance and control of losing as a central component of successful trading and not just an emotion-based reaction.

In addition, you must also treat your profits with the same respect as your own initial equity. Novices have a tendency to adopt a more cavalier attitude with their winnings and exposed them to increased levels of risk. Instead, you are advised to treat them in exactly the same way as your own money by trading consistently whilst applying sound risk and money management concepts.

You will also discover that it is not a very good long-term policy to merely mimic the trading actions of others. This is because other traders could have totally different objectives which may not be conducive with your own, Study their ideas, of course, but then learn how to integrate any relevant concepts into your own plans.

For example, they may have much larger equities than you which could allow them to trade larger amounts but still within the parameters of their risk strategies. Should you attempt to do the same then you could expose your account to over-trading.