Forex Trading money alone is involved, unlike other enterprises with inventory, overhead and asset management. The forex losses here and there are also felt in absolute monetary value. Most variables are stable in the usual business cycle and income is not based on trends. Although certain factors in some cases affect the margin, the investment is largely risk-free. In the Forex trade, on the contrary, there is no assurance of profit or risk-free capital as trends are prone to change and profitable businesses are elusive. Even the investment can be traded for forex. By identifying the types of forex losses typically associated with forex losses and our tips to prevent forecast losses, Forex losses could actually be greatly reduced.
As much as I want to avoid losses in forex trading, you can't. It is never going to happen, however you can minimize the losses by 1. Learn about money management 2. Learn about risk management 3. Putting Stop Loss 4. Lower level of leverage 5. Trade with confidence but not too over confidence.
Personally, it's hard for me to distinguish the most important point that will 100% help you prevent losses. But there are certain actions that will help you minimize your losses. Among them, perhaps, the most important are risk management, trading strategy and development of discipline. Actually, these aren't very complicated measures, which, if taken, will help you to get rid of at least half of your losses in trading. To study these steps in detail, you can go to the Internet and find all the necessary recommendations there.
A trader's failure to comply with or complete absence of a trading plan, which includes clear rules for entry and exit from the market, is almost 100% guarantee of failure to trade in the Forex market in the long term. As a rule, beginner traders have the same mistake. In case of failure, emotions take over the mind, and the beginner simply throws his trading plan, only exacerbating the situation and reapplying unprofitable trading methods. Such traders enter the position with all their deposits, ignore stop-losses and hold unprofitable positions, hoping for a quick reversal of the market, ignoring the reverse signals or interpreting them in their favor, presenting wishful thinking as real.
Until you gain a certain experience, you will not be able to trade without losses, the only thing that can make them minimal is working with a broker Amarkets, because they really have some of the best conditions.