At the beginning you may decide to trade a day chart. The trading movement over a day can be hundreds of pips, so when you select your stop-loss position you have to assess what your drawdown limits are. If your money management stipulates a 3% funds exposure, you will get into problems on day charts unless your account is large.

 The 5M or 30M charts maybe more appropriate since the pip movement tends to be smaller, so your stop placements can fall within your management margins.

 Yes, we all want good returns from out trades, but jeopardising ones account to wide stop positions and excessive draw-downs is going to wipe out your account and trading career in no time at all.

 A practical risk level is 3% or $300 on a $10,000 account.  Convert this to pips, 1 standard lot ($100,000) has a pip value of $10 so if you trade end of day and your stop loss positioning, whether count-back or support and resistance or any other, indicates a 100 pip stop position, then you are not risking 3% but 30%! Three wrong trades and your account has vaporised!

 An aggressive trader is open to taking riskier trades that a conservative trader. Their tendency is to expose larger amounts of money in riskier trades with the hope of achieving larger returns – often over longer trading time frames but they may still use the similar strategies for shorter times as well. Very much the ’all risk’ trader.

 So where do you think you sit? Are you a highly controlled trader with correct money management and risk rates, or a trader that will take exaggerated risks for big gains? If you are the latter, you won’t be around for long, that’s a guarantee.

 If any of this leaves you a bit confused, you need to understand what you are about to do with your hard earned funds, so begin by getting your Forex training with Top Dog Trading, you will learn an enormous amount and it will help you trade with safety to win pips not risk everything.

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