Great article my friend. You summed it up really well. Use the 4Ts model to decide how best to manage risk. This involves:
Transferring risk - assigning an individual, group or third party to be responsible for the risk
Tolerating risk - no action is taken to mitigate or reduce a risk (it still needs to be monitored)
Treating risk - controlling risk through actions that reduce the likelihood of the risk occurring or minimise its impact prior to its occurrence
Terminating risk - altering processes or practices to eliminate risk completely
Money management and risk management are very important in Forex. First understand the forex market, know about leverage, make a good trading plan, do set your risk - reward ratio, manage your emotions and practice on demo regularly.
Everything you said is true of course. I want to add that risk management an money management should be considered as the basis notions of trading activity, not even notions, but rules, you know. Of course trader must be flexible and master not only these two practices, but also emotions control and other things. Risk management accroding to various experience contains only one fundamental thing. It sounds like open a position with no more than 2-4% of deposit and wisely manage stop-loss and take profit. It’s also very significant for every trader who want to reach success in this activity I guess.
Sure having a trading plan is important, and that needs to be coupled up with a risk management strategy. Keeping a journal is also important as you can keep track of your past trades and learn from them.