Dwayne Buzzell Blog | Ways to prevent loses in forex trading. | Talkmarkets

Dwayne Buzzell

Forex Trader
Member's Links: Forex Trader

An economist, Forex trader and Forex writer, I have a keen eye for spotting international trading trends, particularly since shadowing my mother’s work over the past 20 years with one of the largest fashion groups.


Ways to prevent loses in forex trading.

Date: Monday, May 21, 2018 4:39 AM EDT

The forex trading market has done well in the financial markets. It holds more than $5 trillion daily volume is making it the largest market worldwide. Forex has gained popularity by all levels of investors and traders. It is easy to trade in forex with a 24-hour operation, significant leverage as well as significantly low costs. However, the foreign exchange does not mean obvious rewards. Sometimes you lose if your currency speculations are out of line. But this should not worry you. Below are a variety of things you can do to avoid losing your fortunes in the competitive market.

  • Do your homework well. The fact that forex is easy to get into, it does not mean you do need due care in your transactions. Learning more about forex is important to contribute to the success of the traders in the forex markets. Though a new trader learns alot from forex trading experiences, he or she should also learn everything concerning forex markets including economic and geopolitical factors that influences traders preferred currencies. When you do your homework, you can get prepared to adapt to any changing market regulations, conditions or world events.
  • Take your time to find a reputable broker. Forex industry has less supervision than other financial markets. Therefore, if you are not careful, you might end up with a not reputable broker. Because of the concern of safety deposit, a forex trader should open an account with a company that has a registration with the legitimate regulatory authority of his country. The traders also should research on the broker’s policies including commissions, deposits, withdrawals and other related policies.  A helpful broker should have all the above info and be able to answer all relevant questions concerning firm’s service or policies.  
  • Use a practice account. Almost every trading platform has a practice account. Sometimes it’s called demo account or simulated account. The same happens in Juno market as well. The accounts allow a new trader to trade virtually without risking any real money. The great benefit of practice account is that it allows you to become experienced at order-entry techniques.
  • Start small before going live. Once you have done your homework well and had a good practice in your practice account, it is now the time to go live. You can start trading with real money. Any amount is great to start the trading, although it is advisable to start small and grow big. By starting small, a forex trader can appraise his trading plan and become more adept in performing the precise order entries.
  • Protect your account. Although you may have a lot of focus in making money in forex trading, you have to learn how to avoid losing. Proper money management is critical in securing successful trading. Besides accepting the losses and moving on, always use stop loss strategies. It is the only sure way to ensure that your losses remain reasonable. Additionally, use money management techniques like trailing stops that can help you preserve your winnings at the same time enabling your trade room to grow.
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