How can you work at your forex career to avoid losing money? Believe it or not, majority of traders in the forex market are not doing well. Facts have it that only 10% of investors win per trade, while a whopping 90% make losses. This is a market that accounts for about $5 trillion on a daily basis, the most liquid market, and the largest there is. The currency exchange market is quite big enough for everyone; the thing is to know how to make it work for you to make more profits than losses in your transactions.
Here are some ways a trader can work at forex to avoid losing money
- FIND OUT WHAT THE MARKET IS ALL ABOUT IN DETAILS:
This is the first work a trader should do before even signing up to trade the forex market. The trader should find out the meaning of forex, how it works, and how to make it work for the purpose of making good profits. Some of the things a trader should concentrate on at this point include
Terms used in the forex market
Trade sessions with regard to time zones
Types of forex charts and how to read them
When to trade and when not to
- FIND A REPUTABLE BROKER:
Being that the forex market is a large and decentralized with no oversight, there is a really high likelihood that traders will make lots of mistakes, especially during start up. One of such mistakes can be seen in choosing a broker. It is easy to be a forex broker, just like it is to be a forex trader, but traders should beware to avoid signing up with a broker that may make away with their deposits. It is wise to go for experienced brokers that registered with the right organizations as applicable in one’s country.
- DO NOT SKIP DEMO TRADING:
Demo trading is trading in a simulated forex market environment. This means that the trader gets to trade in an environment that looks just like a forex market but with no financial commitments. The purpose of this is for the trader to learn the trading platform he or she might eventually trade live with, and also to understand the forex market in a practical way before making some financial commitments.
- START SMALL WHEN GOING LIVE:
A notable way of working at forex is to start small when going live. After a trader must have done all that has been mentioned earlier, and is satisfied with what has been learnt, that is the time to go live, but trading little money at a time. No matter how one looks at it, there is no way to trade the forex market to avoid looses entirely, especially when going live for the first time. This is all the more reason one should work with little money at first and then increase it with time.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.