The right steps to bankruptcy
Forex trading is often presented to the average person as a kind of investment miracle – a way of quick enrichment. And in an example, of course, there are loud names, such as Warren Buffett or George Soros, who earned their fortune through trading on the currency market. But how many of the beginners are successful? And can investing in Forex be the beginning of a successful career of an influential investor?
For 75% of traders, the start of the Forex game and the following attempts to master the art of currency speculation are the right steps to bankruptcy. Why is this happening? Partly due to the lack of awareness of novice traders. Partly due to arrogance and unwillingness to accept the rules of the game accepted in the world of “big investments”.
Do traders have a chance to avoid bankruptcy? In fact, it is enough to soberly evaluate your strength and follow a number of simple rules:
1) First and foremost: Forex is not a roulette or lottery. This is a serious financial instrument, which can take a lot of time to master. If you are not ready to spend time and money on it – a successful career of a trader is out of the question.
2) Forex trading is a complex process with many participants. And the trader is only one of millions of private investors who have access to operations through an intermediary – a broker, on whose choice depends largely on the success of trading. But not all brokers are ready to react instantly to the requests of their clients. Accordingly, the speed of execution of orders often does not correspond to the views of the players. When you open an order, you should take care of minimizing the risks – otherwise, if something goes wrong, it is unlikely that you will be able to close the deal immediately.
3) Trading on Forex implies not only receiving income, but also paying for brokers’ services. That’s why it’s important to remember that the real sums coming to your trading account can be much lower than expected.
4) Investor’s work is a complex process that requires a certain type of warehouse and nervous system organization. After all, currency trading is a struggle of nerves. And here, it is extremely important to remain cool and sober. Not ready for the inevitable losses, deposit drains and erroneous transaction decisions leading to the loss of funds on your way to the top of the financial world? Then you’ll be inevitably disappointed.
5) Remember that the only way to succeed on Forex is to create your own trading system. Without a trading plan, it is impossible to get a reliable idea of the development of the trading situation. And this is the first step towards collapse. Identify the limits of the risks that you may consider acceptable. And enter the game only when you are really able to control the situation.
6) Forget about the desire for profit. It has nothing to do with serious work in the investment and currency markets. Don’t try to make a profit “here and now” – it’s better to learn how to make a profit from any, not even the most profitable, situation.
7) Don’t forget the external influences. The trading situation can be disrupted by the release of important news, changes in the global economy. Enter the game only if you are confident in your own predictions. And don’t try to benefit from dubious and overly risky situations.
8) Limit risks – close loss-making transactions before they result in the loss of all funds. A negative trend can be much stronger than you expect.
9) Try to catch the trend and trade in the direction of market movement. This is the strategy that most often becomes the basis for successful Forex trading.
10) Use the principles of management in practice. Limit risks, do not forget to withdraw profits, set stop-loss where possible.
And what else should those who aren’t ready to lose everything know? How to recognize the right steps to bankruptcy and turn from the wrong path in time? Experience of successful traders and Expert Advisors of brokers.ru shows: experience and knowledge help to avoid mistakes. Learn, invest in self-education, learn new trading strategies and improve your knowledge of the analytical tools used. After all, only those who have in their arsenal the most diverse set of trading instruments, can count on the fact that its success in Forex will not be accidental, but natural and deserved.