While everyone who has spent more than thirty seconds studying Forex knows that it is a lucrative market with endless possibilities for profit, what most people do not know is that if you are not careful, it could be very dangerous and the right forex advice, like everything else in life, is what is most needed. The simple fact is that most people who start trading lose their entire deposit within a few weeks or months. Needless to say, you need to be careful not to become one of these people!
Along with its $3 trillion daily turnover, high leverage, and flexible trading conditions, other unique features of the Forex market include the proliferation of scam services and the brokers who will take your money and run.
Therefore, it is crucial that you take control of the situation before you start trading, learn the risks with the right forex advice and minimize losses and maximize your profits.
The following ten forex tips are the opinion of the 90% of Forex traders who have just lost their money:
You’re not going to make millions, at least not right away:
Yeah, I know the agent said he would, but he lied to you. The stories I’ve heard of people making millions in a trade are as likely as winning the lottery, it’s not going to happen. Do not aspire to something impossible, otherwise you will be disappointed. If you’re able to make consistent and consistent profits, you’re in good shape and off to a great start. In fact, the easiest way to make a profit on Forex is to earn less than half your trades, but to make profits in such a way that your average winning trade is much larger than your average losing trade. This is the easiest to achieve, but it is very difficult psychologically, as you will lose most of your trades with this style and have some consecutive loss runs. However, 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 don’t realize until it’s too late is that the high level of leverage that allows trading, those numbers can also make you lose all your money in one take. Stay away from high leverage in the beginning, it is a better tool once you are a trained and experienced Forex investor. As a general rule of thumb, true leverage (the amount of money controlling your trade 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 higher leverage of around 1.3 to 1, analysts say that that company is dangerously over-leveraged!
3. Another great forex tip is that a demo account is your best friend:
Every agent today has a demo account and if the one you are viewing is not, go ahead. However, what most people don’t realize is that a demo account is not something they use until they see their benefits first, or even their first week of earnings. Even use a demo account for months before risking real money. Remember also that not only do brokers usually set up their demo accounts to show better spreads and execution compared to their real money accounts, plus, it is 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 floor, but it will probably fall off if it is placed 100 meters in the air.
4. He doesn’t even think about risking more than 2% on a trade:
Yes, we’ve already established that we all want to make millions and run the risk of a 2% won’t come, but if you run the risk of more than 2% in a trade, you most definitely end up kicking yourself.
5. Forex brokers are guilty until proven guilty:
It is perhaps a bit 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 suit 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.