Three golden rules to contain the damage and risks in Forex Trading
Many people around the world now see that the Forex safe haven in these difficult financial times, which are surrounded by the future a big question mark. Has the advantage of the Forex market is not available in any other market as a result of the enormous size is not resistant to recession. Can be for traders to continue to reap profits from their transactions, even in these difficult times.
On the other hand, the traders who are new, after visiting the websites of Forex, whether sites for forex brokers or trading or automated to provide any other service forex, quickly affected the idea of wealth between overnight. There is no location of the sites is the only Forex traders get rich quick and take advantage of the development Forex beginners.
Must traffickers smart before you start trading to spend much time reading the articles and learn as much as they can before risking any money. Information available to traders on the Internet are endless in the literal sense of the word, and thousands of articles published every day, and the people involved experience the various trading platforms, and tutorials spread in every corner. All this may affect you as shops, and many new traders will want to hear some golden rules which they can use to start trading.
I do not claim in this article you will be an expert Forex after the implementation of these rules, but I think if you can remember what the rules and worked out, you can avoid the disaster faced by the majority of traders when trading without prior knowledge. I have written about it repeatedly, in my articles and previous will to tell you again, potentially profitable Forex great, but the danger is equally great.
The following are three golden rules of trading forex, if implemented, will give you an advantage rather stay on someone else from the traffickers:
1- do not rely on luck
If you rely on Forex and intends to make serious attempts, you must show your kid and develop a plan. Do not start trading without a strategy and methods of money management. Regardless of skill or natural Aftrtk trading, remember that you will lose and will lose more than once. Important question now is, and that's what distinguishes the novice from experienced, How will you deal with this loss-making transactions? You will be forced to close your account because you experience a losing 5 deals? If the answer is "yes", then you are mistaken.
Let's stop talking about the philosophical and talk numbers. Imagine for a second one that decided to open an account the amount of 10.000 dollars. You can now choose how much you can risk the deal by one. It is clear that the greater the risk, the greater the possibility of profit, from here that the prevailing "no gain without pain".
If you decide to risk by 10% of your total each transaction, it is a simple equation and you will lose everything after the 10 loss-making deals. Now imagine that you did the same thing but risked only 5% of the total account per transaction. We have doubled your chances to win, or reduce the chances of request for coverage by half.
But money management is not only to prevent the request for coverage, it is also an important tool to ensure the continuity and stability of profit. Forex industry is constantly evolving, and new tools developed every day. Even now, while I write these lines, the majority of forex trading platforms provide important and useful tools must be exploited if you want success. Place the stop loss points Stop Losses and do not let your losses go on for a long time. Put points profit Take Profits, I know that it is difficult to stop the deal when they are winning, but this is exactly what you should do if you want to continue Forex.
The bottom line is that when it comes to trading Forex, you should not rely on human emotions or intuition, should be based on a strategy for carefully considered and detailed according to your personality and your needs from a trade.
important("" I do not claim in this article you will be an expert Forex after the implementation of these rules, but I think if you can remember these rules and worked out, you can avoid the disaster faced by the majority of traders when trading without prior knowledge. I have written about it repeatedly, in my articles and previous will to tell you again, potentially profitable Forex great, but the danger is equally great "")
2- do the first steps of your plan
Well, this is not just a point I want the stuffing of the article, this is an important and critical to your success Forex. Let me clearest to you. Easy to plan your strategy, but it is difficult to implement, The plan tells you to do something very opposite of what your heart tells you. Studies have shown that nearly 60% of the failures Forex can be attributed to this factor. People do not adhere to Bouktttha. You must understand that Forex and emotions do not mix, and should not mingle. If you are a person tends to emotional stimulation quickly, or knew that he was making hasty decisions in difficult situations, you must not interfere with your strategy and let you work instead of you. Do not let your emotions dictate your decisions you need to Forex, this will lead to your doom.
If you find yourself not committed to a plan to trade and your emotions interfere with your decisions, the only other possibility is the lack of confidence, the plan itself. You should look for yourself and make sure that the plan was intended to be used entirely for you. This may take some time to find, you may feel that you want to trade immediately, but skip this step will undoubtedly lead you to failure. This may not happen immediately, but if you were not committed to the plan and to trade randomly, it would join at the end of the day to 90% of traders who have failed a game of forex. Make a plan, and adhered to, regardless of anything else.
importan("" It is easy to plan your strategy, but it is difficult to implement, The plan tells you to do something very opposite of what your heart tells you.
Studies have shown that nearly 60% of the forex failures can be traced to this factor. "")
3- Use the leverage rationally:
Anyone who visited the site of Forex of any kind, has seen no doubt words such as leverage and margin. At the outset, leverage and margin are not the same thing. Margin is money, and leverage is money broker. And explained in more detail, the provider will do repeat this again, leverage is not your money, they belong to the intermediary and you borrow this money.
Another important point is that traders should be understood that when it comes to financial leveraging it increases the chances of profitability, but also increase the risk of trading and could easily lead to the destruction of your account.
For example, the use of a 1:100 leverage means that you can trade money equal to 100 times set by the pre-borrow this money. This also means that you have doubled the speed of your loss of money 100 times as well. The use of leverage is literally giving you control your account to another person, a mediator.
If you are sure that you will earn the deal, it is difficult to predict this, use the leverage is high, because your earnings will multiply. If you are not sure of the result of the deal, use this source of risk rationally. Think of the crane, as I said earlier, such as speeding that lead by a car. Higher the leverage, the more you are driving at high speed. The sooner, whenever an error or omission less deadly for you.
There are lots and lots of information and tips that may help anyone try Forex for the first time, but I think I can say that If I understand these points the previous three and carried out properly, you can start trading safely.
Of course, if you want to make a lot forex market, you must learn how to analyze the market, and understand the basics, and to address the various technical indicators used for the field of forex trading. The most important thing you should do is to contain the damage, and will help these three points to do so, because, as I explained earlier, no one is trading forex without loss of face. Will lose,
the important questions now is, are you able to recover and continue, and whether you are able to learn from your mistakes?