The simple fact is that most people who start trading lose their entire deposit within a few weeks or months. It goes without saying that you need to be careful not to become one of these people!
Along with its three trillion dollars of daily turnover, its high leverage, and flexible trading conditions, other unique features of the forex market include the proliferation of scam services and the brokers that will take your money and run.
Therefore, it is crucial that you take control of the situation before starting to negotiate, learn the risks with correct forex advice and thus minimize losses and maximize your profits.
The following ten forex tips are the opinion of the 90% of Forex investors who have just lost their money:
1. You will not make millions, at least not immediately:
Yes, I know the agent said he would, but he / she lied to you. The stories I heard of people making millions in a store are as likely as winning the lottery, it will not happen. Do not aspire to something impossible, otherwise you will be disappointed. If you are able to obtain constant and consistent benefits, you are in good shape and you are on a great start. In fact, the easiest way to earn Forex gains is to earn less than half of your trades, but to make profits in such a way that your average winning trade is much greater than your average loss trade. This is the easiest to achieve, but it is very difficult psychologically, since you will lose most of your trades with this style and will have some runs of consecutive loss operations. However, the statistics do not lie when they say that this is the most reliable way to generate long-term profits.
2. Leverage equals danger:
The idea of being able to invest $ 100,000 is exciting, nobody denies it. However, what most people do not realize until it's too late is that the high level of leverage that allows the trade, those numbers can also cause you to lose all your money in one shot. Stay away from high leverage in the beginning, it is a better tool once you are a Forex investor with training and experience. As a general rule, true leverage (the amount of money your trade controls divided by the amount of money in your account) should never be more than about 3 to 1 maximum. Consider the fact that if a company has superior leverage of around 1.3 to 1, analysts say that company is dangerously over-leveraged!
3. Another great forex advice is that a demo account is your best friend:
Each agent now has a demo account and if the one that is watching is not like that, go ahead. However, what most people do not realize is that a demo account is not something you use until you see your benefits in the first place, or even your first week of earnings. Even use a demo account for months before risking real money. Remember also that not only the forex brokers usually set up their demo accounts to show better spreads and execution compared to their real money accounts, it is also psychologically more difficult to trade with real money compared to a demo trading account. This is similar to the fact that most people can keep their balance on a wooden beam placed on the ground, but will probably fall if placed 100 meters in the air.
4. Do not even think about risking more than 2% in a trade:
Yes, we have already established that we all want to earn millions and take the risk of 2% will not come, but if you risk more than 2% in a trade, you most definitely end up kicking yourself.
5. Forex brokers are guilty until proven otherwise:
It's maybe a little exaggerated, but the reality is that there are a lot of Forex scammers out there. Do your research and find the one that is not and suits your needs . Check which agent inside and out, make sure you have good reviews and recommendations, then and only then can you assume that it is a smart decision.
6. You are going to lose money and a lot:
Yes, I know it sounds hard, but that's the nature of Forex trading. If you are waiting to earn money and never lose, you are excited. Be prepared financially, emotionally, and in everything else it is possible to lose money and much of it. The trick is to make more money than you lose.
7. It is necessary that you become a brick wall:
A brick wall has no emotions, and that's what you need to be when trading Forex. It is not an emotion, not even a little, without emotion. Neither greed, nor stubbornness, nor depression, anxiety either, and without overconfidence. If you bring any of those to your negotiation game, you will regret it.
8. Do not ride the wave of success for long:
It's easy and tempting to keep an open trade when it goes in your direction, but how can I put this lightly? Do not do it! Set to take profits and when they are up, stop smoking while you are ahead. Do not be mean, but it will quickly become your downfall.
9. The market will be here tomorrow:
If you do not feel it or if you do not see your attractive trade at this time, leave it for tomorrow. The forex market will be here tomorrow, and you will be happy that you did not jump in when the waters were not ready for you.
10. Our last great advice is to remind you Forex:
Do not leave him. Yes, this is a forex site and yes, we believe in the forex market because it is a fantastic opportunity for retail investors, but that does not change the fact that it is not for everyone. If you are not willing to accept the aforementioned nine forex tips, you can then consider seriously leaving this type of investment to others.