Always bear in mind that some unexpected event such as a natural disaster, war or unexpected death of a political leader could throw the entire market into misunderstanding. You can succeed without being the ideal technical analyst but you cannot earn money with global currency trading without understanding risk control.

If you’re risking too much on each trade then at some time or another your funds will be wiped out. All systems have their ups and downs and if your risk is too high, your account balance won’t be able to recover from the downs. On the other hand, if your leverage is too low, you won’t make much cash even from a rewarding system.

So risk must be optimized for your system. Only take the higher figure if losing your complete balance wouldn’t be a disaster. Often, the more cash a trader has in their account, the more careful they’re with it. That is fine so long as the variable risk is still outlined according to the system. What you want to avoid is varying the risk dependent on intuition, or depending on the result you had from the last trade.