Managing risk well for forex trading is key because the market moves fast. Here are some good ways to handle risk: 1. Learn First Before trading, know how forex works. Read books, watch videos, and take online lessons. Learning helps you make better choices. 2. Set Stop-Loss and Take-Profit A stop-loss closes your trade when the price drops to a set level, stopping big losses. A take-profit closes the trade when the price hits your target, securing profit. Use both to manage risk. 3. Control Trade Size Don’t risk too much in one trade. A common rule is to risk only 1-2% of your money per trade. This keeps losses small and protects your account. 4. Be Careful with Leverage Leverage lets you trade with more money than you have, but it also increases losses. If you are new, use low or no leverage until you gain more experience. 5. Diversify Trades Don’t put all your money in one currency pair. Trading different pairs spreads risk and increases chances of profit. 6. Manage Your Emotions Fear and greed can lead to bad decisions. Follow your plan and avoid trading on emotions. Stay calm whether you win or lose. 7. Keep a Trade Journal Write down why you enter trades, how they end, and what you learn. Looking back helps you improve your strategy over time. 8. Watch the Market News Economic news can change prices quickly. Stay updated on events that affect currencies, like interest rate changes or political news. By using these risk management steps, traders can avoid big losses and increase their chances of success in forex trading.