Forex trading beginners opens great prospects that are very fast blind. And half the new traders starting their familiarity with the market tight on that first deposit drains cleaned.
What is the reason? Lack of experience is, of course, the skills, knowledge and, last but not least, no such thing as money management in forex. That is, money management skills and the means of distribution of the deposit.
In order to learn how to deal with the risks, to control them, you need to remember a few simple rules.
1. All what you can take advantage of a new way of working, a new strategy, indicators, trading advisers - must be pre-tested on a demo account. This rule has no exceptions, neither among the newcomers, nor among experienced traders.
2. Do not enter the market just like that. Trading on the forex novice trader seems something like the stock exchange, where you can work when you have time. No work to do when the time is there in the market, and not you. When the situation is favorable for the entrance. If your analysis, strategy and indicators do not honk the opening position to trade today and you should not be.
3. Basis of money management forex - correctly exposed stopping order. That is, the stop-loss order, closing your trading position in order to avoid losses. If you set it incorrectly, or if you simply do not have it, your deposit is in great danger. The market is unpredictable, can you miss yield important macroeconomic news, which completely turned the situation. A pending order already opened position. You can imagine what it is fraught.
4. What would be the forex trading methods you use, always remember allowable losses. Never trade more than 5-10% of your deposit. If your level of acceptable non-recurring losses even less, trade on an even smaller amount. Of course, if some policies such as the Martingale, where the need to increase the size of the lot, to cover the loss - this approach does not work. But such a strategy in itself is very risky, but we are talking about reducing the risks.
5. Use your methods of trading Forex with hedging. Especially if you are not sure a hundred percent, in its decision on the opening of a position. Put a cross position, use the binary options and so on.
6. For novice traders trade on forex as dangerous and emotional -Risks risk losing control, doubts. If you feel that at this moment your psychological state is unstable, immediately abort the operation. And only after you will be able to talk calmly again, stop to question the decisions - go back to trading.
You should not be afraid, so that each line item should not be in the worst outcome, when triggered stop-loss, knock you off track. If you are afraid to lose money, as the saying goes - you lose them with absolute certainty.
Based on materials PaxFoorex
