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Risk is an inherent part of Forex trading. Experienced traders know that they can always lose money even when making conservative trades. Forex trading is risky. Losses can incur quickly, particularly with the high amount of leverage available in the Forex market.
Mini accounts that allow people to trade on the margin using high amounts of leverage can cause them to lose their entire trading account overnight. However, there are steps that can protect traders from these large losses.
Unfortunately, many traders ignore these risk management steps. A common trading mistake is to believe that every good trade is destined to make money. Many novice traders believe that it is impossible to lose money on a good trade. This is simply false.
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