15 ways to avoid losing money

[barood4money]

Yes, it is true. Every new trader feels fear and nervousness while doing real trading. Which can cause wrong planning. So it is better to move slowly and step by step. Always start from small trading to earn small profits.

 

[Decub]

Yes, it is true. Every new trader feels fear and nervousness while doing real trading. Which can cause wrong planning. So it is better to move slowly and step by step. Always start from small trading to earn small profits.

yes, that is why new traders are always advised to start with very little capital in that early stage and work harder on how to safeguard it first before increasing it so that even if you lose it, you will not get so much demotivated as you would have been if the capital was much.

 

[gkintl]

While I agree with most of your opinion, I wish to disagree with point no.5. While there is no doubt that news offers maximum opportunity to make money, it is also the time when beginners lose or receive a margin call. Unless and otherwise a beginner has very good knowledge about currency correlation, it is better not to trade during news time.

 

[Daisy]

During news time you can scalp so scalper might trade more often during news time. When there is good news, the price can shoot 100 pips above so its a strong trend to scalp and not necessarily bad for traders. It can be scary for newbie but an experienced trader can do news. It all depend on how much experiences you have. If you have a lot of experiences in trading then news or no news should not matter to you. A good trader can trade in any type of situation and still come out good.

 

[Pettyeve]

If a trader wants to lose, let him or her not learn how to trade in forex before trading. The first thing that will cause a trader to be losing all the time is because he or she does not have a good knowledge and understanding of what is forex and trading.

 

[Faal]

If a new trader starts his live trading too early then, there is no way! Because, it requires huge knowledge on technical and fundamental analysis! Definitely, knowledgeable traders don’t go for huge income without any logic!

 

[Lee Mark]

I think every trader cannot do without SL most especially the newbies.it goes a long way to minimise our chances of losing hugely in forex and also stop our from likewisely been frustrated out of forex eventually.

No doubt, stop loss trading tool is very important tool for protecting our trading investment! But, it’s not only for the new traders, I know many successful Forex traders who are also using SL in their trading regular basis!

 

[Lee Mark]

So many trader using stop loss to manage the risk in trading because not always they can making accuracy analysis, with using stop loss although we leaving the chart hence will enjoy because already making early preparation

Radex, the point is trading knowledge! Without proper trading knowledge; there is no value of bonus, leverage even stop loss!

 

[Nezami]

In Fx trading , by and large traders in particularly the newcomers fall a great loss by taking high leverage due to non sense planning and zero risk management policy, nothing to do with high leverage at all. so, I think, before trading with high leverage we have to know how to manage risk.

 

[The trader]

Greed and emotions almost same. Generally beginners attacked by this common human nature. We can control this by proper trading practice as well great discipline.

 

[Tom Latham]

Nice effort; but without having own trading knowledge on technical/fundamental! This type of basic guideline is not going to help the traders directly!

 

[Svetlana Loboda]

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 not sure; are you here or not! By the way, how many tools you are using in your trading?

 

[Astirewien]

That's quite solid tips for everyone who are in trading business anyway and I really do not like it completely and totally. Please do remember that that ones are really that much and nothing more really. All of them are simply common sense and that's it.

 

[bolide]

Finding a right broker is indeed necessary for every trader. Not all brokers are having the same set of products in terms of variety of accounts and supporting trading methods. This is why it is important to investigate these topics before you open an account

 

[Tom Latham]

Finding a right broker is indeed necessary for every trader. Not all brokers are having the same set of products in terms of variety of accounts and supporting trading methods. This is why it is important to investigate these topics before you open an account

That’s the point; there have so many market maker brokers; so new traders need to research their own before investing their money!

 

[Alexander Hudson]

Very good writing. It will help all the new traders to make their decisions easily.

 

[Darragh Bell]

Most of the traders lose their money because of their lack of knowledge.

 

[Eduardo Lucchese]

Losing money is a common thing in the forex trading. Most traders lose their money because of their low skilled and lack of education.

 

[Gito Dinev]

Learn proper way of trading. Use risk management strategy to reduce loss in trading.

 

[Mark Dahl]

Loss is an unavoidable factor in trading. Just accept it and try to reduce the loss and recover it with a proper trading plan.