Basic of forex

I believe that the basic in trading forex is all about money management and trading psychology

What is money management?
One of my friend's girlfriend was interested in investing money on me. But she is worry that i will lose all her money. I simply told her that if i keep losing, it will take around 5months for me to ALMOST lose it all.

What i really mean is that i only use a small percent of the capital to trade each time. The way of forex is lose little win big. So with good money management you can keep ur capital safe.

Simply i give a very normal example. Any strategy, no matter what the success rate is, either 80% or even 100%. I will take that all strategies have the success rate of 50%. So every time you click on your trade to sell or buy there will be a 50/50 chance you will win.
If every time you lose you only lose 5%, and when you win you take 10% of your capital. Out of 10 trade, win 5 lose 5, win 50% lose 25%. In the end you still earn a 25% increase in your capital.

In conclusion to be successful in trading, you must be able to manage you capital first.

Next i would like to talk about Trading psychology.

This is the most difficult and simplest skill in trading. Why is it so? Cause it is always easy to say but doing, it is difficult.
FEAR GREED these are the common problem with every trader.
-Fear of losing
-Greed of more profit (using more then 5% of capital)
In addition revenge..
As a trader, you must always have the mindset that you are investing, not gambling. Never think of revenge. A lost is a lost.

Honestly i am still very bad in this area. On feb the trending market fail. I got desperate, i went out to learn other strategy. I think my mindset become gambling instead of invest.
I dont regret it, as lesson learn.

I am still researching of combining technical analysis and fundamental analysis together.