Being a trader means knowing how to handle risk, optimize winnings and limit losses, to be profitable on the markets you do not have to make mistakes.
There are 5 mistakes to avoid absolutely:-
Wrong Money Management
If the relation between the available capital and the single minimum investment isn't correct, period made by a consecutive losses could damage your capital and put you in a difficult situation of traction.
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Poor Quality Broker
If the broker you have chosen isn't trustworthy it may happen that your winning performances could suffer a decrease... even few percentage points could make you collect losses and put you in difficulty.
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Uncontrolled psychological aspects
If you don't use a dose of patience, self-control and acceptance of your losses on your daily trading, it may happen that a negative day will bring our behavior to put our capital at risk.
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Missed Balance of more strategies or signals
If only a single strategy or a single signals provider are being used, when there's a negative period we will be suffering a serious blow.
If instead we start using different strategies or signals the risk will be fractionated and the possible drawdown be lower.-
Wrong bonus evalutation
Accepting a bonus puts you on the wrong psychological condition because it deceives the trader making him/her believe to have money he/she really hasn't.
Following the bonus conditions means pushing over your own trading risking to lose everything.-
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Granville Herzog (thalia67)
says:There is a lot of risk associated with forex trading because it’s a leveraged product. However, stock are less risky as compared to currencies because they are not leveraged as much as forex. Risk in forex trading can be reduced by hedging which involves buying of one currency pair and selling other pair at the same time or using different types of hedging strategies.
milos (milos)
says:In forex trading leverage 100:1 never use more than 2% your capital. If you’re not sure to enter in trade you have to use the smallest investment amount per trade. Lets say 0.01 in relate to provide better hedging technique if the price goes in opposite direction.If you’re enter 0.01 lot EUR/USD ups direction and price goes to opposite you can choose 0.02 lot down direction on GBP/USD. You can make a profit in that case.
Myrna Ward (kohler-imani)
says:There is plenty of risks associated with forex trades that can result in substantial losses. In forex trading, leverage requires a small initial investment, called a margin, to gain access to substantial trades in foreign currencies. If they maintain proper money management, they won’t make losses.