BernerDear46

De BISAWiki

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Edição de 07h02min de 3 de julho de 2013

The Forex market is in terms of size, the most significant financial market globally with major trading locations dispersed across several different time zones. Consequently, it is the only market that's open for twenty-four hours per day with noteworthy liquidity throughout the day. This makes the currency market suitable for traders who don’t wish to leave their day jobs. Even though trading in Forex can be both interesting and rewarding, the chance of losing a lot of money is very real. To make sure that you have more good trading days than bad ones, listed below are a few things to remember.

Choose a reliable broker

In comparison to other financial markets, the Forex industry has significantly less oversight. Consequently, the chance of being cheated is high. You must only sign up for an account with a broker who is accredited by the regulatory body of your state or country. In the US, brokers need to be a member of the National Futures Association and listed at the US Commodity Futures Trading Commission.

Moreover, you need to find out what the broker’s offerings are, how much leverage is available, specifics of commissions and spreads, and account funding and withdrawal procedures. Pick a broker with a prompt and professional customer service staff.

Create a trading plan

Trading without the right planning can be catastrophic to your trading account. Without a plan, it is likely that you will trade using your emotions, which is strongly discouraged since it results to a lot of missed opportunities to profit and increased incidence of profit losses which are otherwise avoidable. Once you have a trading strategy, test it to see if produces your desired results on a consistent basis and if it gives you an advantage.

Have a trading log

Maintaining a record of your trades will help provide useful insights as to which trading strategies you utilize provide constant profit. This may also make you aware you of techniques that aren’t as lucrative so you can make the necessary changes.

Master how to use stop loss orders

A good way to avoid considerable losses when trading currencies is making use of stop loss orders. Setting a stop loss order allows you to decide your allowable loss for every trade ahead of time. This tool is also useful when you are not able to watch your trades for an extended period of time.

Use leverage with utmost care

Large amounts of leverage are available to Forex traders. Used correctly, leverage can help you earn more. Then again, it can also amplify your losses if you're not careful. Although making use of leverage will let you hold bigger position, newbies must opt for smaller positions first to reduce risks. If you want to know more about trading in the forex market, please click here