The global forex market offers an average daily trading volume of more than $ 4 trillion, making it the largest financial market in the world. The popularity of Forex lures traders from all levels, from traders who learn about financial markets to professionals. Because it is very easy to trade forex, access to significant leverage and relatively low cost. Here are some ways to avoid online trading losses
- Study Up To Your Very Understanding
Studying forex is an integral part of the success of a trader in the forex market. While most of the learning comes from live trading and trading experience, traders must learn everything about the forex market, including geopolitical and economic factors that affect the currency of the trader’s choice. His homework is an ongoing effort for traders to prepare and adapt to changing market conditions, rules, and world events.
- Find the Best Broker
The forex industry has much less supervision than other markets, allowing traders to end up with unfamiliar forex brokers. Because of concerns about the security of funds and the integrity of the whole broker.
Traders should also conduct research on any brokerage offered account, including leverage, commissions, spreads, initial deposit, and how to fund account and ease or withdrawal policies. A good customer service and needs to be considered is that it is able to provide information about all these things and can answer any questions about the company’s facilities and policies well.
- Take advantage of Demo Account
Almost all trading platforms provide demo accounts. This account allows traders to try to trade without having to pay and make deposits in the account first. Perhaps, the most important benefit of a demo account is that it allows traders to become proficient in placing orders.
Some things that endanger the demo account and also the confidence of the trader is when the trader pressed the wrong button when opening or ending the order. It is not uncommon, for example, for a new trader to inadvertently add a losing position but not to close a trade. Some errors when entering an order can cause huge losses.
- Watch the Graph
The first time you create a forex trading account, you may be tempted to take advantage of all the technical analysis tools offered by the trading platform. While some of these indicators are suitable for the forex market, it is important to keep in mind that to keep technical analysis to a minimum in order for them to be effective. Use the same type of indicators, such as two volatility indicators or two oscillators, which can become redundant and may even provide opposite signals. This should be avoided.
Any irregular analysis techniques used to improve trading performance should be removed from the graph. In addition to the tools used for the graph, the overall appearance of the workplace should be considered. The selected colors, fonts and bar type prices (lines, candle bars, range bars, etc.) should make easy reading and interpreting of the charts, allowing traders to more effectively respond to changing market conditions.
- Protect your Trading Account
While there is a lot of focus on making money in forex trading, another important thing is to learn how to avoid losing money. Proper money management techniques are an integral part of successful trading. Many retired traders will agree that someone can enter a position at any price and still make money, that’s one way out of an important trade.
To protect your account is to know when to accept your losses and move forward. Always using stop loss is an effective way to ensure that your losses are still reasonable. Traders may also consider using the maximum daily loss amount and no new trade will begin until the next trading session. While a trader must have a plan to limit losses, it is equally important to protect profits. Money management techniques, such as using Trailing Stops, can help keep winning and while still giving the trading space to keep growing.
- Start with a small value when starting real trading
If you are already practicing in a demo account and already have a long-term trading plan in the future, it may be time to play in a real account, ie start trading with real money at stake. Practicing in a demo trading serves to make traders accustomed to trading in real accounts, and therefore it is very important to start small when starting for real trading.
Factors such as emotions and slippage cannot be fully understood and taken into account until it actually runs real trading. In addition, trading plans resulting from backtesting or practice in demo trading are, in fact, not always successfully applied or practiced in real trading.
- Treat Trade As a Business
It is important to treat forex trading as a business, and remember that individual victories and losses are not important in the short term, but rather how to conduct a trading business in the long run. Avoid excessive emotion when you gain profit and travel. Like any business, forex trading incurs costs, losses, taxes, risks, and uncertainties. After all, all businesses will not be successful overnight, nor in the forex trading business. Prepare your plan well and orderly, and learn various reasons when you make a profit or lose, knowing the advantages and weaknesses in every detail of your path to becoming a successful trader will begin to be achieved.