Forex trading is a great way to make profits, as long as you know what you are doing. Of course, it is also very risky, and you have to know how to manage those risks and how to avoid those common mistakes, so as to maximize rewards - something beginning traders often don’t know enough about. While a highly leveraged trade can give you a substantial profit, it can wipe you out as well. Fortunately, it is possible to reduce the level of risk that you carry by avoiding the mistakes that many forex traders commonly make.