Forex risk management is one of the most, if not the most, important topics when it comes to trading. On the one hand, traders want to keep any potential losses as small as possible, but, on the other hand, traders also want to squeeze as much potential profit as they can out of each trade. The reason many Forex traders lose money is not simply due to inexperience or a lack of knowledge of the market, but because of poor risk management. Proper risk management is an absolute necessity in order to become a successful trader.