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Trading currencies doesn’t have to be an extremely tough thing to do. The only reason so many traders lost their money is simply because they don’t have sufficient knowledge about currency trading before actually put their money on the line. Read through these currency trading tips and discover how to trade safely by eliminating unnecessary risks in trading currencies: 1. Do not allow your broker to eat you Let’s face it. The entire world is filled with those who are ready to reap some benefits from you if you do not cautious enough. Scam brokerage will offer you 101 too-good-to-be-true features to lure you in. As soon as you already inside, they will suck your money dry and kick you out when you can’t give them more money. Give yourself a favor. Conduct some research before actually putting your money into some unfamiliar brokerage simply because they offer you sugary promises. Ask if they are regulated by an official financial authority or not. See their terms and conditions. Have a look at their spread. Test their trading platform via the demo account. Spending some time in research will save you from a lot of problems in the future. 2. Do not hop into the market with unproven trading system When you decide to enter the world of currency trading, it's likely you have some ideas about the trading system that you'll apply to generate profits. You could be interested in swing trading, day trading, or other strategies. You could also have interest in automated trading, such as utilizing trading signals or forex robot. Whichever it is, be sure to spare a while to open a demo account and actually test the strategies against live market movement. Using this method, you will get much more genuine result than mere backtest report. 3. Do not count on yourself to close the trade Most novices enter the currency trading world with one misconception: they think they can watch the market movement on their own and make the best decision to get the highest possible profits for every trade. This won’t do. Your emotion are certain to get in the way and screw up everything. You will stress yourself more and get more losing trades than winning ones. Learn about basic risk management: putting Take Profit and Stop Loss orders as soon as you take a position. Doing this will keep your trades controlled and you can sleep better during the night. Naturally, there are particular occasions where you can get a lot more by watching the market on your own, but just leave that for another time when you already get used to the game. 4. Do not put all of your money on the line Learn basic profit and loss calculation. Learn to calculate your equity. By knowing your numbers, you'll be able to employ proper money management anytime you are going to execute a trade. The iron rule here is no matter how good the prospect of the trade might be, you’ll never execute a trade that put all your money at stake. Watch how many lots that you will buy/sell and calculate your loss if the market goes to the opposite way. Could you handle the loss? If you can’t, then it’s better to lessen the lot size and play it safe. The currency trading tips above are basic strategies to get rid of unnecessary risks before you actually put your money in the line. You will need to put some time and effort to do that, but realize that in the world of currency trading, no one can 100% predict the market movement. If you get caught up in a messy situation after you made a bad call, you know that you won't end up losing everything. So, be prepared for anything; that is the essence of becoming a pro trader. If you think that the tips useful, see further advices on mastering currency trading. Additionally, read the details of my top recommended live course on a review of Bob Iaccino Trader Outlook.
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