National Futures Association, most retail forex traders leave the business after about four months.

It is usually those traders who make largely concentrated trades and those who aggressively leverage their trades who are more likely to incur huge losses than those who don't. Traders who are smart to diversify their risk and distribute their trading funds over other markets have a better chance of trading profitably.

Making money trading on the forex involves taking a good deal of risk and quite a few traders do make money.

The following practices for mitigation of risk are advisable and they include:

• Start trading with a practice account

• Diversify risk by making several small trades in other markets rather than a single trade.

• Always use stop-loss orders to reduce potential losses

• Avoid using the available leverage until you can understand how to use it to your advantage. Even at 50 to 1, a two-percent difference going against your trade could result in a total loss of all your invested money.

It is said that knowledge is power, and as the forex market evolves continually, learn everything you possibly can, test out new strategies, and always take a conservative view to maximize trading profits and minimize loss. Another important thing to be successful in currency trading is to employ some form of risk management