22:24
+26 C°
Traffic jam:   2
$
72.2216
85.9943
How Not To Lose Money In Forex? Tips For Aspiring Traders
How Not To Lose Money In For...
Subscribe to Newsletter

How Not To Lose Money In Forex? Tips For Aspiring Traders

1 February 2021
2065
3 min.
How Not To Lose Money In Forex? Tips For Aspiring Traders

As the world's largest financial market, Forex offers great potential for profits, attracting both pro-tier foreign-exchange traders and beginners. It's very easy for a novice to access the market, but most newcomers quit the game after facing their first discouraging losses and setbacks. If you're an aspiring trader looking to do well in the hot competition of forex trading, the following tips will help you avoid the rookie mistakes that lead to losing money.

1. Do your research

Delve into the available theoretical knowledge, such as the factors of economic and geopolitical nature that have the biggest influence on your preferred currencies. The research effort should be ongoing so that you can quickly adapt your short-term and long-term trading plan to the changing conditions.

2. Do your business with a reputable forex broker

A legitimate broker should be registered as a futures commission merchant with the corresponding regulatory body (CFTC and NFA in the US). When considering a specific broker, such as the forex.com broker, make sure to research into their policies and services. You're looking for:

  • a high level of security
  • reasonable transaction costs;
  • hassle-free account funding and withdrawals;
  • a stable trading platform;
  • speedy execution of orders.

Many trustworthy and informative review aggregators focus on giving their readers a detailed and truthful analysis of forex brokers. Be sure to check out the forex.com review and reviews of other reputed brokers before finalizing your choice, example https://forex-up.com/broker-reviews/prestigeoption-review/.

3. Start with a practice account

A demo account is an opportunity to try your hand at placing hypothetical trades and get the hang of order-entry techniques. Pushing a wrong button in the heat of the moment is a common mistake of new traders that can lead to devastating financial losses and a lot of stress. That's why practicing with a simulated account is important before any real money trades.

4. Step into real money trading with small stakes

Despite its advantages, a simulated account cannot possibly give you the experience you gain in live trading. With real money at stake, you'll likely experience stronger emotions, which may affect your decision-making. A trading plan that works perfectly on a demo account may not be as stellar in the live market conditions. Going live with small stakes, you can learn to account for all these factors without much financial risk.

5. Use only a sensible amount of leverage

The term “leverage” stands for utilizing borrowed funds to boost your trading position. While giving a new trader plenty of growth potential, leverage can also result in magnified losses. It's advisable to base position size on your actual account balance and avoid maximizing leverage to limit the risks.

6. Employ money management techniques

Utilizing a stop-loss strategy and limiting the maximum amount of your daily loss will allow you to keep your losses at a reasonable level. On the other hand, trailing stop orders will protect your profits – but you'll still have room to grow.

7. Keep technical analysis tools to a minimum

Multiple indicators of the same type are redundant and often confusing. The trading platform will have a plethora of tools for technical analysis, but you should avoid cluttering the chart with techniques that you do not use regularly. The chart should be easy to read and interpret so that your response to a change in the market conditions is quick and effective.

Section:

Discussion

Rating companies
Tesla
69 Mention
Apple
68 Mention
Nasdaq
66 Mention
Amazon
56 Mention
Dow Jones
53 Mention
Facebook
50 Mention
Microsoft
36 Mention

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director