Thread: The Important Ways to Keep From Losing in the Forex Markets

Hi Traders

Hope you enjoying on Trading n the bigest market on the world...I wish to open discussion about Important Ways to Keep From Losing in the Forex Markets

The idea behind forex trading is of course to make money. However, like any speculative investment, there is a change of loosing money. The same holds true with the stock market and the commodities market, and in business itself. Any investment that has a chance of great gain will also have a certain level of risk. As a forex trader you will want to minimize your chance of risk. Do it in these ways.

-Stay informed. Read the news magazines and political events journals. Know what is happening in the world politically.
-Have a good understanding of economics. Take a college econ course if you never have. Read the journals of economics and books by economists like John Maynard Keyes, Kenneth Galbraith and Walter Williams.
-Read periodicals like the Wall Street Journal and Business Investors Daily.
-Open up a practice demo account and use it before you get into the market.
-Have a broker you trust.
-Cultivate friendships with other traders who know their stuff.
-Look at the historical trends. Read and study forex charts.
-Take a course in forex trading to get your skills up to snuff.
-Research forex on the Internet.
-And finally, only invest money that you can actually afford to loose if worse comes to worse. Then you won’t be out of the game completely.

have a nice trading day...

dekac

Good points! I would also add:

- learn about charts and understand indicators well.
- design your own strategy and trading plan. Don't try to just copy some other trader. Everyone is different.
- use stop/loss
- avoid overtrading
- learn to control your emotions
- follow your trading plan. Remember that it is better to miss a good trade, then get stuck in a bad trade.