Risk management in forex

Risk management in forex trading lies in prudent use of leverage, lot sizes, stop loss and take profit tools. You have to risk no more than some certain % per trade from your equity, it is the main rule. The second is to maintain profit/loss ratio per trade that should exceed 1. It can be 2:1 or 1.5:1, i.e. you have to cut losses earlier (in terms of pips) than your profitable trades.