With a turnover of 4 trillion USD per day makes forex trading is the largest financial market in the world. How to make an easy transaction. The sophistication of information technology has made trading more practical. With 24-hour working hours from Monday to Friday making Forex a very active market in the world.
With great results, it is certainly inevitable that the risks are also quite high. Here are some tips you can use to avoid losses in trading tools.
- Learning Endlessly
Forex trading can be said simple, but to be able to say so you must master the science first.
Learning the science of trading is something that can’t be separated from the success of a trader. Learn the right way, starting from the new base and gradually rising to the next level. Because there is no instant success. All need time. All need a fight.
- Find a reputable broker
Many people still do not have enough information about forex, so gullible by fraudulent brokers who take advantage of the lack of understanding about forex. Starting from fraudulent under the investment of forex, to brokers who do not have official permission (illegal). Finally, trader’s capital is also lost.
Therefore, for the security of your funds, make sure you join a futures broker who already has official permission.
- Practice with a demo account
All forex brokers provide demo account facility as your means to practice trading before going down to the real trading arena. With a demo account, you can practice trading with a real market situation without having to worry about losing money.
Keep it simple
A trader tends to be tempted to put too many indicators into his chart. Often even he uses some indicators that actually have the same function, or even without knowing what exactly the function is.
Eventually, his chart became very crowded and he just got confused himself. So you should remove the indicators that you do not understand the function and use. Use up to 4 types of indicators in your chart and make sure they have functions you understand and master.
- Use Security
It is important to know how to avoid losses, minimizing the risks. Proper and appropriate capital management techniques are integral to forex trading. Anyone can enter the market anytime, but the problem is how they get out safely.
Using stop loss is the most effective way to ensure that your risk is not too great, or at least within your tolerance limit. The point is at risk restrictions.