subject: How to Make Money and Eliminate Losses on Forex [print this page] How to Make Money and Eliminate Losses on Forex
How to Make Money and Eliminate Losses on Forex
Its a commonly known fact that Forex traders make a lot of money and since the profits are huge, they often forget certain fundamentals that form the basis of currency trading. This often leads to losses. Those who don't have a rock-solid plan of action and trade haphazardly lose money and then blame the forex market. In order to ensure that you are able to make consistent profits in the forex market.
Low Capital: Most traders dealing with forex aren't here for the long haul. They just want to make quick profits and exit the market with their pennies intact. Or they turn towards forex as a way to get out of debt. Unless individual traders start taking forex seriously and trade large lot sizes to generate high returns they can't expect the yield to ever be high enough for their liking.
The solution for this is simple. Even beginners shouldn't always trade with a shoe string budget. The minimum amount investors in India should invest is Rs 50000.
Risk Management Failures: Managing risks smartly is the key to your survival in the forex world. Even skilled forex traders can be forced to call it quits if they have poor risk management system. So your numero uno job isn't making huge profits but protecting what you already have. Only if you can protect your capital from getting depleted will you be able to make make profits...eventually.
The solution to this predicament is to use stops and moving them once you have made a decent amount of profit. So use lot sizes that are reasonable when compared to your capital in you account. Any time a trade doesn't seem to be making sense, just get out of it immediately.
Don't be Greedy: Some traders can't seem to get a hold on their greed and try to squeeze the last possible pip from a move. One can make money of the currency market every single day at any time. So it doesn't make sense to be so greedy. If you try to grab the last possible pip from a trade before the currency pair turn, you're setting yourself for a loss.
While it may seem obvious, traders need to keep a check on their greed to stay alive in the forex market. Instead of shooting for sky high profits, keep your targets reasonable and know that there are plenty of pips to go around for every one. Since currencies are moving every day, you don't really have to gun for the every last pip. So relax because the next money making opportunity is just around the corner.
How to Make Money and Eliminate Losses on Forex
Its a commonly known fact that Forex traders make a lot of money and since the profits are huge, they often forget certain fundamentals that form the basis of currency trading. This often leads to losses. Those who don't have a rock-solid plan of action and trade haphazardly lose money and then blame the forex market. In order to ensure that you are able to make consistent profits in the forex market.
