In forex trading, capital management is more important than the outcome of any single trade. Many new traders focus on finding the “big win” while ignoring the risks tied to capital management. By limiting the risk of each trade (for instance, keeping losses within 1%-2% of account balance), traders can ensure the overall safety of their account even when facing a series of losses. Capital management not only helps extend a trader’s lifespan in the market but also allows for long-term growth as they gain experience and refine their strategies. Sound capital management underpins every successful trading system.