forex trading course :: forex currency trading system

When trading the forex you will often see a two-sided quote, consisting of a 'bid' and 'offer'. The 'bid' is the price at which you can sell the base currency (at the same time buying the counter currency). The 'ask' is the price at which you can buy the base currency (at the same time selling the counter currency).

Frequently, new currency traders simply select a lot size that ?feels right? without evaluating the level of risk that such a trade contains. Often, when the trader has encountered a few successful currency trades, he/she increases the size of the trades without fully considering the potential Profit and Loss swings that can easily occur. The considerable leverage that forex affords represents a constant temptation to make this mistake.

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