Skip to content
Stock Trading 360

Stock Trading 360

Primary Menu
  • Home
  • All Blogs
  • Terms and Conditions
  • Privacy Policy
  • About Us
  • Contact Us
  • Home
  • 2019
  • November
  • 6
  • 5 Ways to Avoid Losing Money in Forex
  • Featured

5 Ways to Avoid Losing Money in Forex

Stock Trading 360 1 year ago 3 min read

The global foreign exchange market moves over $5 trillion in daily trade volume. This daily volume makes Forex the most significant financial market worldwide. For this reason, all levels of foreign-exchange traders are attracted to Forex, from newbies to professionals. Trading Forex is made easy by low costs, access to leverage, and 24-hour sessions. As easy as it is to trade in Forex, it is just as easy to lose money.

Here are five ways to avoid losing money in Forex:

Do Your Due Diligence

As easy as it is to get into Forex, you must first do your homework before jumping in. Learning more about foreign exchange is vital for your success in the market. Most of the Forex learning is gained via live trading, and as a trader, you must learn everything there is to learn about Forex markets. Learning about the current economic and geopolitical factors that influence currencies is part of the due diligence.

This homework is a continuous effort as you must prepare to move with the evolving market regulations, world events, and conditions.Part to this due diligence involves coming up with a customized trading plan. This plan consists of having a systematic procedure for investment evaluation, risk determination, and coming up with the short term and long term objectives.

Find A Reputable Broker

You might be unfortunate enough to end up with a non-reputable broker. Since you cannot be sure how safe your deposits are, or the broker’s integrity, you should open an account with a reputable brokerage firm. This brokerage firm should be a member of the Australian Securities and Investment Commission (ASIC)

The local Australian regulator, ASIC ( Australian Securities and Investments Commission) keeps a firm reign over financial services. The regulator raised the brokers’ minimum net capital requirement from AUD 50,000 to AUD 500,000 to make sure brokerage firms are equipped to protect their investors from unfavorable events.

As a trader, you must research about the brokers’ account offering, which includes commissions, leverage amounts, initial deposits, withdrawal policies, commissions and spreads, and account funding.

Use a Demo Account

Almost all online trading platforms have a demo account, also called a practice or demo account. You can use the simulated account to place simulated trades without having an account. This account allows a trader to become more fluid at order-entry capability.

You can easily make a massive blunder in your trading account by pressing the wrong button. If you make many errors in order entry, you might end up with significant losses. Practicing with the simulated account makes you much more adept at making order-entry before you can trade with actual money.

Start Small 

Once you are through with your due diligence, practiced with a simulated account and you have a trading strategy in place, you are ready to go live. Going live means trading with real funds, and no matter how much you have practiced, nothing beats going live with real money. Start small. Before you start trading live, you cannot fully understand the difference between the expected trade price and the actual trade price.

A trading strategy that seemed foolproof might fail in a live market. Starting small allows you to evaluate your trading strategy and emotions. You become more experienced in the execution of accurate order entries, and avoid risking your trading account.

Keep Records

Have a trading journal that keeps track of your Forex transactions. Keep a record of all trading with date, profits, losses, instruments and your performance as a trader. When you periodically review the journal, you will get valuable feedback which acts as part of the learning curve.

Without keeping a journal, you are bound to make the same mistakes, which minimizes your chances of becoming successful.

Conclusion

Trading Forex is a lucrative venture, but only if you are dedicated and patient. Forex is not a get rich scheme, which means you have to have the patience and some spare capital to invest. As with any venture, you have to be vigilant and do your due diligence, especially when it comes to choosing a brokerage firm. 

The post 5 Ways to Avoid Losing Money in Forex appeared first on Wall Street Survivor.

Continue Reading

Previous: How Big Company Layoffs Can Affect Small Communities
Next: Salary vs. Hourly Employment for a Small Business

Related Stories

shutterstock_1423137179 What are the Best Exchanges for Crypto Margin Trading? 1 min read
  • Featured

What are the Best Exchanges for Crypto Margin Trading?

Stock Trading 360 3 months ago
iStock-1126669376 How to Start Successfully a Delivery Service 1 min read
  • Featured

How to Start Successfully a Delivery Service

Stock Trading 360 3 months ago
shutterstock_591470369 Just getting started? Choose your investments wisely 1 min read
  • Featured

Just getting started? Choose your investments wisely

Stock Trading 360 4 months ago
cellphone-device-electronics-870903 What Is Service Delivery Orchestration and How Do Businesses Benefit from It? 1 min read
  • Featured

What Is Service Delivery Orchestration and How Do Businesses Benefit from It?

Stock Trading 360 4 months ago
iStock-1126669376 Employee Training Content Development Tips 1 min read
  • Featured

Employee Training Content Development Tips

Stock Trading 360 4 months ago
accounting-blur-budget-128867 Top Tips To Keep Your Business Debt-Free And Financially Independent 1 min read
  • Featured

Top Tips To Keep Your Business Debt-Free And Financially Independent

Stock Trading 360 4 months ago

Recent Posts

  • What are the Best Exchanges for Crypto Margin Trading?
  • How to Start Successfully a Delivery Service
  • Just getting started? Choose your investments wisely
  • What Is Service Delivery Orchestration and How Do Businesses Benefit from It?
  • Employee Training Content Development Tips

Recent Comments

    Archives

    • December 2020
    • November 2020
    • October 2020
    • September 2020
    • August 2020
    • July 2020
    • June 2020
    • May 2020
    • April 2020
    • March 2020
    • February 2020
    • January 2020
    • December 2019
    • November 2019
    • October 2019
    • September 2019
    • August 2019

    Categories

    • Featured
    • Uncategorized

    Meta

    • Log in
    • Entries feed
    • Comments feed
    • WordPress.org

    You may have missed

    shutterstock_1423137179 What are the Best Exchanges for Crypto Margin Trading? 1 min read
    • Featured

    What are the Best Exchanges for Crypto Margin Trading?

    Stock Trading 360 3 months ago
    iStock-1126669376 How to Start Successfully a Delivery Service 1 min read
    • Featured

    How to Start Successfully a Delivery Service

    Stock Trading 360 3 months ago
    shutterstock_591470369 Just getting started? Choose your investments wisely 1 min read
    • Featured

    Just getting started? Choose your investments wisely

    Stock Trading 360 4 months ago
    cellphone-device-electronics-870903 What Is Service Delivery Orchestration and How Do Businesses Benefit from It? 1 min read
    • Featured

    What Is Service Delivery Orchestration and How Do Businesses Benefit from It?

    Stock Trading 360 4 months ago
    • About Us
    • Contact Us
    • Privacy Policy
    • Terms and Conditions
    ©2019 | Stock Trading 360 | All Rights Reserved