- Are Funded Trading Accounts Worth It? - September 24, 2023
- How to Get Funded Trading Account - September 24, 2023
- How to Control Emotions while Trading: A Comprehensive Guide - April 14, 2023
Just about anyone who starts Foreign Exchange Online is hoping to make lots of money. There may be some people who do it just for fun, but if all the success they will soon start to think that success in turning a money maker that could possibly change their lives.
However, many forex traders have their big dreams come to nothing.
1: increases the risk
When you start, you will receive a lot of good tips to keep your risk low and around 2% to 5% depending on the size of your funds. Most people feel it’s OK to take a risk greater percentage of small funds, because they do not care so much about losing money. So you may be happy at 5% risk of a balance of $ 1,000 to start (it’s $ 50), but you probably would not risk starting at 5% of balance $ 100 000 if you have (or $ 5,000).
But after a while, the situation is somewhat reversed, and the people who started with a good risk are often small by increasing. This can be either because their system has been consistently profitable and they think they can not lose, or because they had a few losses and they think they should be due to a winning run. None of these assumptions are true. Disasters can strike, often at times that we are least prepared … to know when we just increased the risk.
simply enter your risk percentage should decrease as you increase in funds, and not vice versa.
2: Trying to do everything
Some inexperienced forex traders hop from system to system, leaving all systems whenever a new happens. Others try to cover all the bases, running three or four systems at the same time and negotiation on each currency pair that their broker provides. Both tactics are very wrong here.
the most successful systems are simple. Do not try to use any trading strategy you can find online and not be drawn into thinking that if you combine all the experts advice that you will end up with a perfect system.
Exchange systems do not mix well. Start with one. If it does not give you enough trading signals so you have nothing to do most of the time, you might want to add another, but be careful. Remember that if there is a sudden major natural disaster or terrorist attack, all open your business could go west in seconds.
3: Test Too much or too little
You probably know that you need to test all systems in a demo account before going live with it. But although the system is explained, you can do something slightly different that will give you different results from the expected. It is important to test that you have enough confidence in your system.
But at the same time, do not test too long. You should know that the system works and then not be afraid to switch to a real money account … without changing anything. Back on the demo account every time you think of an improvement. This will give you the best chance to make big profits with your account online trading exchange for real money.