• The Forex, Binary Options Forum - welcomes you to our Community!

    DigitalCashPalace Forum is dedicated to discussions about Forex, Binary Options, commodities, stocks related.

    Please take a look around, and feel free to .

15 ways to avoid losing money

Which we should prepare, accept and realize to ourselves. We need to know those beforehand to not have big impact when it's happened already. Yet, this means that losing will be experience sooner by everyone. No exemption, no way to avoid it as it's part of Forex trading and other businesses.
 
I think in ordr to avoid loss,i think proper money managment should be taken in the sense that we are really investing what we can afford lossing because when we invest a amount we can't afford lossing it adds more tension to our trade and that kinda tension is uncontrolable and also making proper analysis.

- - - Updated - - -

I think in ordr to avoid loss,i think proper money managment should be taken in the sense that we are really investing what we can afford lossing because when we invest a amount we can't afford lossing it adds more tension to our trade and that kinda tension is uncontrolable and also making proper analysis.
 
Yeah with proper management that you would definitely lose money in forex because of the high risk involved in forex. So I just hope that I would always be able to follow this money management. As i trend to follow myself and not the proper management of money because i get tempted to earn fast despite the high risk
 
if traders able to generate consistent profit in demo account, they will able do the same way too in live account. if traders still unable to make consistent result in demo account, better not necessary to rush jump in live account because it same with financially suicide.
 
Forex is not an easy source of money where anyone can enter and make money. There are many things to learn and consider in Forex trading. Weaknesses and ignorance has no place in Forex trading and results in financial loss. We have to consistently improve our knowledge and skills to survive in this business.
 
there are many ways to be able to avoid losing money in forex trading will occur and the most important thing we must do so that we can avoid losing is to measure the limits that we have and we use capital and profits that we want to get out of each trade we do and if we want our trade to be more secure way we can trade using a very large amount of capital with low lot size and the trade we would have a very strong capital resilience despite the benefits that we will get less great but this is quite effective in securing our trade from loss
 
The most common that we always use is the risk management with the help of some indicators or with the stop loss function. Of course, we need to proper use it in our setup of trading. Since, even we use this method there's no certainty it will have workout for some trials.
 
Theirs no way you can avoid losing money in forex. So we must just prepare to minimize our loses in forex and maximize the profit potential if theirs any. That's why right now I don't like people saying that they don't like forex trading because they loss money. If they loss money its because they don't do any research and don't practice before they trade.
 
1. Wrong Broker : A lot of forex brokers are horrible; get a good one. Read forums and chats in several different places to get an unbiased opinion.

2. Trading During Off Hours Bank FX traders, option traders, and hedge funds have a huge advantage during off hours; they can push the currencies around when no volume is going through and the end game is new traders get fleeced trying to trade signals. There is only one signal during off hours it is better to stay out.

3. Trading Against Prevailing Trend There is a huge difference between buying cheaply on the way down and buying cheaply. What was a low price quickly becomes a high price when you 're trading against the trend.

4. Picking Tops and Bottoms - Looking for bargains works well at the supermarket but not trading foreign exchange; try to trade in the direction the price is going and your results will improve.

5. Not Trading Around News Time : Most of the big moves occur around news time. The volume is high and the moves are real; there is no better time to trade fundamentally or technically than when news is released; this is when the real money adjusts their positions and as a result the prices changes reflect serious currency flow (compared to quiet times when bank traders rule the market with their customer order flow).

6. Ignore Technical Conditions : Determining whether the market is over-extended long or over-extended short is a key determinant of near-time price action. Spike moves often occur when the market is all one way.

7. Lack of Confidence Confidence only comes from successful trading. If you lose money early in your trading career it's very difficult to gain true confidence; the trick is don't go off half-cocked; learn the business before you trade.



8. Being Too Smart : The most successful traders I know are high school graduates. They keep it simple and dont look beyond the obvious; their results are excellent.

9. Stop Losses : Putting tight stop losses with retail brokers is a recipe for disaster. When you put on a trade, commit to a reasonable stop loss limit that allows your trade a fair chance to develop.

10. Relying on Others : Real traders play a lone hand; they make their own decisions and dont rely on others to make their trading decisions for them; there is no halfway; either trade for yourself or have someone else trade for you.

11. Too Many Charity Trades : When you make money on a well thought-out trade, dont give back half on a whim; invest your profits from good trades on the next good trade

12. Too Much Detail : If you are trading more than 2 indicators, then you need to clean house. Having many indicators stifles trading and finds reasons not to trade. A setup and a trigger is all you need.

13.Overconfidence : Trading is not easy; statistics show a 95% failure rate. If your doing well dont take your success for granted; always be on the lookout for ways to improve what you 're doing.

14. Knowledge Deficiency: Most new forex traders do not take the time to learn what drives currency rates (primarily fundamentals). When some news or a statement is due out, they close out their positions and sit out the best trading opportunities; they are taught to only trade after the market calms down. So essentially they miss the whole move and then trade the random noise that follows a fundamental price move. Just think for a moment about technically trading the aftermath of a price move; there is no potential.


15. Rumors : Rumors are rumors almost 100% of the time; think about where in the motion you heard the rumor. If EUR/USD is up 50 points in last 15 minutes and the rumor is dollar negative, well then you missed it. Whenever you trade, determine where in the motion you are entering.

I am agree you all 15 way that’s best way to avoid losing money. Definitely, Knowledge is key of success if you have enough knowledge you can’t loss. without forex knowledge it is risking your money. If you have time you can learn by using Online Forex Trading Course that’s easy to understand. *Demo account is another option to start with this that’s easy, and risk free way. When you get confidants, you will invest money.
 
Yes I really agree with your point. Moreover, if one want to stop losing money in scam investments they should follow these above mentioned simple steps.
 
Which we should get ready, agree to and recognize to ourselves. We need to know those beforehand to not have big effect when it's occurred already. Yet, this implies that dropping will be encounter earlier by everyone. No omission, no way to prevent it as it's aspect of Currency dealing and other companies.
 
I hold with strong assertion the point number 1. Avoiding the wrong brokers is a very important factor that must be considered. Getting all the needed information about the broker's genuiness/certification is very important before making a choice of the broker.
 
I only have one and that's the most important way to minimize losing money in forex and that is practice. The more you practice in demo the more you can actually make profit in real account. I know how important practice is. Its really help me a lot and some how I'm earning in forex simply because of this.
 
Yes, we should think of constantly think of better plans and strategies. And to come up with the best way of trading for us. This could be really done in demo trading and to continuously practicing in the market to totally understand or at least predict the market movements.
 
the biggest problem for me and maybe for most of trader is psychological condition when trading. anxiety and fear is part of our burden during trading and as far as we unable to overcome it, can be sure many of our trading decision lousy. back practice in demo account maybe will regain our confidence more.
 
Great information. Well outlined and important for every new trader. Other points to consider are:Don't open too many orders. Don't be emotional to close profitable trades and leave unprofitable ones thinking it will reverse to your favour.
 
Yes, I agree with you. There are many factors which should be maintain to avoid loss. Everybody should learn risk management and money management to minimize the chance of loss.
 
the best way to minimize loss in forex trading is to be a good analyst because the risk in forex trading can not be totally avoided it can be minimized due to forex trading is programmed in a way that it is a must loss you will loss then make money it depends when you trade and when you close your trade.
 
the best way to minimize loss in forex trading is to be a good analyst because the risk in forex trading can not be totally avoided it can be minimized due to forex trading is programmed in a way that it is a must loss you will loss then make money it depends when you trade and when you close your trade.

It is true that to earn good profit and minimize the chance of loss, a person must learn market analysis very well. Because of proper technical analysis you can earn a good profit.
 
the biggest problem for me and maybe for most of trader is psychological condition when trading. anxiety and fear is part of our burden during trading and as far as we unable to overcome it, can be sure many of our trading decision lousy. back practice in demo account maybe will regain our confidence more.
There are so many ways to overcome the feelings of fear. Mainly anxiety and curiosity are always present in newer traders, it is wise enough to start up with the cent account immediately after leaving the Demo, there, you are sure you have very little investments and you should trade in smaller lot sizes, it decreases that rate of fear because you know you wouldn't be losing much after all, trade their for a long time and gradually grow boldness, confidence and courage before going to the real account.
 
Top