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Thursday, November 14, 2019

Principles to help you avoid losses in Forex trading

In fact, the fastest way to learn how to make money is to lose money. Losing money doesn't necessarily mean you need to burn your trading account, but instead learn from your unprofitable trades. When you discover the reason behind the losses, you will better understand how the market works and find your advantage. 
The article below Tapchitienao.com will share the principles to help you avoid losses in Forex trading.
Let's refer!

Place a stop loss order

Stop loss - A stop loss helps traders set their maximum amount that can be lost on a single trade. Many traders when entering the trade they do not set stop loss. Some people believe that transactions need to have more space to "breathe" before turning to profit.
However, with fast moving news and market reactions, prices can quickly fluctuate. Without a stop loss, you could have your account broken if the trade went against you in large volumes.
Take for example the unexpected instability caused by the Swiss National Bank's decision to abandon the minimum rate of 1.20 Swiss francs against the euro, which it has been protected for three years - in the black swan SNB, The Swiss currency gained value immediately, fluctuating in the money market.
If you find yourself constantly checking your trades every minute, or worried about losing points or expanding when a trade happens to you, then that means you're risking too much in trading. Translate. Consider limiting your risk to no more than 5% of your capital account.

Pay attention to news in Forex

Yes, forex news can move the market. Another reason traders lose money is that they are not up to date with the latest information and economic changes.
For example, you may be inclined to enter a trade when you see a rising flag about to exit without following the first news. The central bank of the currency you are buying may suddenly cut its interest rate, even before the transaction goes into profit or touches your target price.This decision causes the currency to fall and go backwards. your trade, causing you to stop loss.
Usually, traders open a trade without checking for short-term economic news. You should make it a habit to consider both technical and fundamental analysis before opening a trade. Always check forex news!

Good emotional control

If you follow CEO Mario Singh's presentation, you'll be familiar with your successful business law, also known as MSS:

Here, Mario identifies the "Emotion of the mind" as 55% responsible for business success. Being in a good state of mind means controlling your emotions. When dealing with too much emotion, they may engage in revenge transactions, which may involve the initiation of a trade formed when they lose money; eliminate their loss for fear of realizing losses; or continue to trade larger in the hope of recovering previous losses.
On the other hand, overprotective traders are excited to see that their trades can abandon their trading plans and carry out risky trades.
Finally, traders make the mistake of letting their losses run and cutting their profits, which is perfectly normal when you're not aware of your emotions. These traders do not close the trade, with the belief that they are bound to come back, ultimately making them suffer huge losses.

Transactions have specific plans

If you do not have a plan, you have defaulted the plan is a failure. These words could not be more true, especially in the field of business. A trading plan is a set of rules that you use to determine whether or not you should trade. It should take into account the trader's personality, personal expectations, risk management rules and trading strategies, etc. When you follow a business plan, it can help you limit your trading mistakes and minimize your losses.
Stick to a plan that allows traders to separate themselves from the emotions that arise from opening a trade.If the trade does not meet the requirements of your trading plan, you simply ignore the delivery. It is important to note that a business plan must be refined along the way when you find out what works and what doesn't.
Having no plan during your trading journey is unwise because you are trading instinctively and without a real understanding of what you are doing. Although there are plans that do not guarantee immediate success, no one can prove to be a major barrier in your trading journey! Start with a plan and constantly refine it to establish an advantage in the market.

Use appropriate leverage

In the end, leveraging excess leverage is the most common way traders can lose their money. Your losses by the same intensity. People are attracted to forex trading because they can get leveraged accounts, which means they can use a small amount of money to make a big profit.
Let's say you have a leveraged account of 200: 1 and you deposit $ 1,000. This means you have access to 200,000 currencies of your choice. It's easy to see that with only $ 1,000 and being able to trade for $ 200,000, your profits can easily be amplified. However, leverage also works in the opposite direction, amplifying your damage by the same intensity.
Like any other tool, if you learn how to use it to your advantage, you can really maximize your profits and minimize your losses to produce consistent results.
Overall, the forex market is not a scary place. Opportunities are many and have money to earn. Just make sure you do the exact opposite of the 5 things mentioned above!

Conclude

To be a good Trader and make money in the forex market is not a simple matter even if you have a high IQ. You must understand the basics of trading. Next are the strategies and accumulated practical experience. Before you begin, remind yourself that being a trader is no easy task, there is always false information fooling you and you can never win every trade, no one and no one. France can do that.
"You have to do it by following a proven and proven scientific method of science that has a positive profitability , " focusing your time and energy on relevant information and ignoring the worthless things. Useful for transaction objects.
If you feel that becoming a professional trader too hard, learn about the revolutionary new century to  copy transactions ( social trading ), where you can connect to the transactions leading and copy trading signals from them.
According to the Blog Fullertonmarkets

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