Precautions Forex to know to operate

Precautions Forex to know to operate

Before we advance any further in our Forex course, we will be 100% honest with you and tell you some important things before you start trading with Forex currencies:

• All traders in Forex, and we emphasize that ALL, lose money in their operations. The point is to make more money than you lose.


• The 90% of Forex traders fail because of lack of a good trading system, little training and poor rules of money management. You should also consider that if you hate losing or are a very perfectionist person, you will find it difficult to adjust to the Forex trading process.


• Forex trading is not the solution for people who are unemployed, low income or for those in a complicated economic situation and want to get out of it quickly. You must have a starting capital available and be prepared to lose it if it is the case.


• Do not expect to become a millionaire overnight or effortlessly. In many cases the publicity that certain companies of the sector make contain deceptive or very unrealistic promises.
  Forex Precautions

[caption id="attachment_485" align="aligncenter" width="273"] Precautions Forex to know to operate[/caption]

The Forex market is one of the most popular markets for speculation due to its huge size, liquidity and the fact that currencies often show strong trends towards a direction. You will think that there are people around the world getting rich with Forex, but success is limited to only a small percentage of people.

Many beginner traders are attracted by the wrong hope of making lots of money, quickly and without any discipline or preparation. Many people lack discipline to follow a diet or go to the gym three times a week, and if you are one of those people, that is, if you can not even meet that, how do you think then that you will be successful trading currencies ?

Short-term operations are not for beginners. You can not generate significant benefits without also taking substantial risks. A strategy that involves taking a high level of risk means to operate with inconsistent development and also suffer heavy losses of money. An operator who does this probably does not have a strategy, unless you believe that betting is a strategy for trading currencies.

Doing profitable Forex trading is a skill that needs time to learn

Skilled forex taders can and do make money in this exciting world of forex trading. However, as in any other type of business, success does not come overnight.

Trading in forex is not as easy as some people or companies want to make you believe, imagine that if so, all investors would be millionaires right now. The truth is that even the most skilled operators still have periods of losses.

Learn this phrase and memorize it: There are NO short cuts in Forex! Take your time to become an expert.

There is no substitute for hard work. Practice first on a demo account and treat that virtual money as if it were your own real money. Never open a real trading account until you have made a profit on a demo account.

If you can not wait to open your real account until you have made sustainable profits in a demo account, at least try a few months. This way you will at least avoid having lost all your money in two months. If you can not control your desire to trade live for two months, you better work first on your self-control if you want to trade Forex.

Focus on a single currency pair

It is too complicated to control more than one currency pair when you are starting to trade Forex. Stay better alone with a larger currency pair, as you are the most liquid and your spread is cheaper.

You can be a profitable Forex trader, but like any other aspect of life, you will need hard work, dedication, patience, discipline, a little luck and a lot of common sense.

NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.