You cannot eliminate risk in currency trading but you can certainly manage it. They key to this is you trade size compared to capital. The higher this ratio the greater the probability you will lose you capital on a single trade. Before you enter a trade clearly define your take profit and stop loss levels. This adds to the discipline of your approach and help avoid loss scenarios that get out of control.
Emotion is the enemy of successful currency trading.
Fear of loss, greed for profit and arrogance can all lead to poor trading decision. Trade with your head not your heart. With sufficient caution and expertise, currency trading can be very profitable and exciting. For more information about trading with OzForex fill in this short form and we will be in touch shortly.