It is very easy to lose money in Forex. Most of the time, traders in the market simply lose money by trading in the market. It may sound surprising to you how people lose money when they are trading. But it happens, and the reason they lose money is they overtrade the market. They do not know when to stop trading and thus keep on trading on the market. If they lose a trade, they trade again hoping to regain what they have lost, and lose again in the market. This is a cycle of losing and they do not stop until they have lost their capital.Trading in Forex is not a game where you can trade the market because it has random winners.
Though masters of Forex use the word random to say that, every time winners of the market are different, they also mean this market is changing so quickly and it is not possible for traders to correctly guess the market each time they place trades. The professional traders in Singapore always consider trading as a probability. No one in the world can find 100 percent accurate trades, so if you find any website claiming to do so,stay away from them. In order to survive the market, you need to strictly follow proper money management so that you can afford to take losses.
Less trading can protect your money
If you place 20 trades on the market and another trader has placed 10 trades in the market, who do you think will have the most profit in the market? You may think it is you who have placed more trades so you have more chance in the market. You will find that traders who has placed fewer trades in the market have the most profit. He is placing a smaller amount of trades which gives him the time to analysis the market beforehand. Making a profit in the exchange traded funds industry has no relation with your trading numbers. If you place fewer, but quality trades in the market, you will make more profit. Placing more, but cheap trades in the market will not make you a winner in the long term.
People will not simply give $800for an iPhone if it becomes slow after six months. Quality comes first and profit is its logical sequence. When you place fewer trades, it will be better than the other traders, and you have less chance of losing your capital. Many traders in the market have lost their profit because they overtrade the market. Know when to trade and when not to. It is as important as making your profit and protecting your capital.
Develop a solid system
The Forex market is a dynamic market and every single second it’s changing its nature. As a new trader you need to develop a solid trading strategy which will guide you to finding the best possible trade setup. Another mistake that many novice traders make is they trade the lower time frame for high-frequency trade execution. However, expert traders always suggest using the higher time frame since it gives the high-quality trading signal. Never place the trade based on your technical analysis only, rather, try to learn the fundamental analysis skill as it will help you to place a trade in favor of the existing trend. Some professional traders even consider fundamental factors, such as the key price driving catalyst. Try to develop a balanced trading strategy which will take care of all the essential trading parameters.
Mind sharing Any strategy that you yourself are using?
I am a beginner, in the currency exchange market, I just read your very useful content on how to protect forex trading capital. I find tips are very useful for all types of trader. Learning is somehow very important for a trader, so have success in this market.
Originally posted by Nirvanafirst:
Mind sharing Any strategy that you yourself are using?
I think the guy working a forex broker, gives advice to find new clients for them. But advice is very helpful.
please follow these rules and trade forex market. Open demo account with a good regulated broker. Create a profit able strategy. After creating a profit able strategy open a real account. Don't over trade . follow money mangement rules. Get profit from the forex market. live haapy and haapy.
As we all know that Forex market is very dynamic market. Most of the people bear loss everyday due to their lack of proper Trading Plan.
But, You can save your money by following some simple tips which are as follows-
1. Learn before you burn- Learning about Forex is important part to a trader to get success in Forex market. Learning some factors which directly affects a trader's preffered currency including geopolitical and Economic factor.
2. Take the time to find a reputable broker- Before investing in Forex market you should search about a reputable broker who can suggest you about the right investments.
3. Use practice account- Never use your real account when you are a begginer, create a demo account and trade for some time untill you get proper knowladge about the market. As we all know that Practice makes us Perfect and nothing can substitute it.
There are much more tips that can Protect your money from loss. We not only provide daily basis tips but also educate our clients regarding the market so that they don't not loss their precious money.
For more updates please visit our website- Forex Tips Provider
I would like to add that less trading is not an edge. The point is to enter the market, whenever there is a good entry point (I use Price action for defying them). Maybe I'll share my technical analysis here to show how I find them, but it will be some time later.
In general, the article is not bad, really. :)
Forex is risky i find
In fact the key to success in forex trading is emotional discipline. If intelligence were the key, there would be a lot more people making money trading. I know this will sound like a cliché, but the single most important reason that people lose money in the financial markets is that they don't cut their losses short.
There are three golden rule to make your trading Profitable, Longlasting and Low Risky
1. Always use stop-loss in all your trades
2. Never assume trend about any trade.
3. Always think about Risk to Reward ratio in your all trades.
Thanks for the info
any forex group can join
Thanks for sharing
Thanks for the info.
old driver here