For a professional Forex market trader, money is not a goal, but just a means to an end. This is true because long-term practice shows that it is impossible to achieve success if in the process of making trade transactions with currency you constantly think only about money. Only the currency speculator becomes successful, who directs all his intellectual efforts not on dreams of wealth, but on analyzing the current state of the market and making sensible trading decisions, taking into account possible risks. As for the latter, for their control, novice currency traders should adhere to the following simple but very effective recommendations:
1. Control emotions when making a profit and when losses occur. Excessive emotionality in the trading process has a very negative effect on the adoption of adequate decisions.
2. Pay the main attention not to the size of the possible profit, but to the quality of the transaction.
3. The initial amount on the deposit must match your financial condition. Do not participate in trading on Forex with funds that were intended for other purposes. The ratio of the size of the invested funds and the size of the personal budget to avoid financial collapse should not exceed the ratio of 1 to 6.
4. The effect of leverage in adverse events has a devastating effect on invested capital. It is extremely dangerous to use a large leverage with a small deposit amount, because in this case you can lose everything as a result of just one failed transaction.
5. Clearly determine for yourself exactly what amount you can risk when opening an unsuccessful trading position. It is desirable that this amount does not exceed 2-3% of the deposit.
6. In the process of placing stop-loss (protective orders) do not exceed the previously established limits. Especially if by nature you are a gambling person.
7. Getting started trading in Forex, get a clear idea of the fees that your broker will take. It is best of all if the clause on such payments is explicitly stated in the concluded agreement, since such and expenses have a direct impact on losses and profits.
8. Working through a remote client terminal, remember that any failure in the information and trading system or communication channels may lead to losses or non-receipt of profits. Therefore, in case of unforeseen failures, make sure that you have a spare phone connection on a reliable line with a broker, and, moreover, always keep a record of all open trading positions and orders placed without exception.
9. Since any, even the most advanced, information and trading system is subject to temporary disruptions, arrange backup options for obtaining quotes from alternative sources. In this case, under any circumstances, you will have an idea of the real state of the market.
10. Remember that the forecasts of even the most well-known analytical centers and reputable financial gurus cannot serve as a reliable basis for opening trading positions without critical thinking.