Hearing about the chance to get high profit, more people are jumping to forex trading with minimum knowledge. That’s true that the profit is real, but the battlefield itself is superbly competitive and stressful.
People are in the game non-stop and the currency is volatile. With ambition to get fast returns, a lot of common mistakes are kept repeating each time. When most people do that, don’t let yourself jump into the same hole. Making Hurried and Premature Speculation Do you see that forex trading is basically played on speculation?
Successful speculation is made under deep planning. Making premature speculation will only raise your chance of getting loss. In the practice, a lot of forex traders, especially beginner tend to buy the lowest value of one currency. In this case, certainly the said currency is the most played one, such USD, GBP, EUR or JPY. They decide to buy the currency at the lowest value so that they can sell in the future, once the value rises.
The fact is once the currency suffers from fall, it’s going to be a long time before it rises. Most cause behind the fall is country’s unstable economy condition, which takes time to solve. If you expect fast return, then don’t bother investing to average down. Investing a Lot of Money You may dream of big profit, so you use more than 10% of your capital. Remember that forex market is highly volatile, so you can’t always guarantee your success. Once you lose, you’re going to lose a lot. There is a general rule among forex trader to use 2% of capital only, so you will still leftover to start over.
People are in the game non-stop and the currency is volatile. With ambition to get fast returns, a lot of common mistakes are kept repeating each time. When most people do that, don’t let yourself jump into the same hole. Making Hurried and Premature Speculation Do you see that forex trading is basically played on speculation?
Successful speculation is made under deep planning. Making premature speculation will only raise your chance of getting loss. In the practice, a lot of forex traders, especially beginner tend to buy the lowest value of one currency. In this case, certainly the said currency is the most played one, such USD, GBP, EUR or JPY. They decide to buy the currency at the lowest value so that they can sell in the future, once the value rises.
The fact is once the currency suffers from fall, it’s going to be a long time before it rises. Most cause behind the fall is country’s unstable economy condition, which takes time to solve. If you expect fast return, then don’t bother investing to average down. Investing a Lot of Money You may dream of big profit, so you use more than 10% of your capital. Remember that forex market is highly volatile, so you can’t always guarantee your success. Once you lose, you’re going to lose a lot. There is a general rule among forex trader to use 2% of capital only, so you will still leftover to start over.
