We can’t really speak of earning money on FOREX without understanding the risks. Foreign exchange market isn’t a safe battleground for beginners. Huge money is at stake, and any small mistake may cost you a big loss. At the same time, nobody can be assured of success drawing on past experience of stock trading or commodity market.
Nevertheless this should not be any reason to put us off. Anything is possible. Every challenge can be handled if you’re prepared for it. Here are some tips from JustForex that are likely to help you know where to start.
Get some practice before trading real money
One of the common mistakes FOREX of beginners is trading on the real accounts from the start. However, in most cases, such a hurry only leads to disappointment. It is better to get some practice on a Demo account with virtual money having real trading conditions. Once you complete a few trading sessions on the forex trading practice account, you feel confident about it.
Manage your money well
Have a rational attitude during your trading activity. Don’t put 100% of your trading capital per trade at one order. It’s always risky to lose everything after so much time of profitable deals. For instance, set a limit on the amount of money you may use for one order. 3-5% of all your capital per trade at risk.
Put a stop loss to each trade
Successful traders give a lot of attention to The Stop Loss option. Don’t expect that all your trades will be closed profitably. Trading is a slow and steady process where you have to shorten losses. Book the losses to each trade and move ahead.
These three important tips will help in turning FOREX trading a profitable affair. Happy Trading!