ForexSecret123 (10)

1
10 Ways to Avoid Losing Money in Forex

• Here are 10 ways traders can avoid losing money
  in the competitive forex market. 

Theforexsecret.com
2
1. Do Your Homework

• Just because forex is easy to get into doesnt
  mean due diligence should be avoided. Homework is
  an ongoing effort as traders need to be prepared
  to adapt to changing market conditions,
  regulations, and world events. Part of this
  research process involves developing a trading
  plana systematic method for screening and
  evaluating investments, determining the amount of
  risk that is or should be taken, and formulating
  short- and long-term investment objectives.

Theforexsecret.com
3
2. Find a Reputable Broker 

• The forex industry has much less oversight than
  other markets, so it is possible to end up doing
  business with a less-than-reputable forex broker.
  Traders should also research each brokers
  account offerings, including leverage amounts,
  commissions and spreads, initial deposits, and
  account funding and withdrawal policies. A
  helpful customer service representative should
  have all this information and be able to answer
  any questions regarding the firms services and
  policies.

Theforexsecret.com
4
3. Use a Practice Account

• Nearly all trading platforms come with a practice
  account, sometimes called a simulated account or
  demo account. These accounts allow traders to
  place hypothetical trades without a funded
  account. Perhaps the most important benefit of a
  practice account is that it allows a trader to
  become adept at order-entry techniques.

Theforexsecret.com
5
4. Keep Charts Clean

• Once a forex trader opens an account, it may be
  tempting to take advantage of all the technical
  analysis tools offered by the trading platform.
  While many of these indicators are well-suited to
  the forex markets, it is important to remember to
  keep analysis techniques to a minimum in order
  for them to be effective. Using multiples of the
  same types of indicators, such as
  two volatility indicators or two oscillators, for
  example, can become redundant and can even give
  opposing signals. This should be avoided.

Theforexsecret.com
6
5. PROTECT YOUR TRADING ACCOUNT

• While there is much focus on making money
  in forex trading, it is important to learn how to
  avoid losing money. Proper money management
  techniques are an integral part of successful
  trading. Many veteran traders would agree that
  one can enter a position at any price and still
  make moneyits how one gets out of the trade
  that matters. Part of this is knowing when to
  accept your losses and move on. Always using a
  protective stop lossa strategy designed to
  protect existing gains or thwart further losses
  by means of a stop-loss order or limit orderis
  an effective way to make sure that losses remain
  reasonable.

Theforexsecret.com
7
6. START SMALL WHEN GOING LIVE

• Once a trader has done their homework, spent time
  with a practice account, and has a trading plan
  in place, it may be time to go livethat is,
  start trading with real money at stake. No amount
  of practice trading can exactly simulate real
  trading. As such, it is vital to start small when
  going live. Factors like emotions
  and slippage (the difference between the expected
  price of a trade and the price at which the trade
  is actually executed) cannot be fully understood
  and accounted for until trading live.
  Additionally, a trading plan that performed like
  a champ in back testing results or practice
  trading could, in reality, fail miserably when
  applied to a live market.

Theforexsecret.com
8
6. USE RESONABLE LEVERAGE

• Forex trading is unique in the amount
  of leverage that is afforded to its participants.
  One of the reasons forex is so attractive is that
  traders have the opportunity to make potentially
  large profits with a very small
  investmentsometimes as little as 50. Properly
  used, leverage does provide the potential for
  growth. But leverage can just as easily amplify
  losses.

Theforexsecret.com
9
7. KEEP GOOD RECORDS

• A trading journal is an effective way to learn
  from both losses and successes in forex trading.
  Keeping a record of trading activity containing
  dates, instruments, profits, losses, and, perhaps
  most important, the traders own performance and
  emotions can be incredibly beneficial to growing
  as a successful trader. When periodically
  reviewed, a trading journal provides important
  feedback that makes learning possible. Einstein
  once said that insanity is doing the same thing
  over and over and expecting different results.
  Without a trading journal and good record
  keeping, traders are likely to continue making
  the same mistakes, minimizing their chances of
  becoming profitable and successful traders.

Theforexsecret.com
10
8. KNOW TAX IMPACT TREATMENT

• It is important to understand the tax
  implications and treatment of forex
  trading activity in order to be prepared at tax
  time. Consulting with a qualified accountant or
  tax specialist can help avoid any surprises and
  can help individuals take advantage of various
  tax laws, such as marked-to-market accounting
  (recording the value of an asset to reflect its
  current market levels). Since tax laws change
  regularly, it is prudent to develop a
  relationship with a trusted and reliable
  professional who can guide and manage all
  tax-related matters.

Theforexsecret.com
11
10. Summery

• The worldwide forex market is attractive to many
  traders because of its low account requirements,
  round-the-clock trading and access to high
  amounts of leverage. When approached as a
  business, forex trading can be profitable and
  rewarding. 

Theforexsecret.com
12
Thank You

• Website https//theforexsecret.com/
• Email
• info_at_TheForexSecret.com