Staying
Safe In Shark Infested Waters
The Dangers Beginner Forex Traders Face
Most beginner Forex traders start out without a proven Forex
trading system, and that's the source of many of their initial losses. If
you're just getting started in Forex, don't even attempt to trade without a
tried and tested method for deriving Forex trading profits, otherwise you'll
end up losing money. When you're new to Forex, it will take you a long time to
gather the necessary knowledge and experience to develop your own method or
system, so you're much better off buying a proven system if you want to start
making profits quickly.
Even with a proven Forex trading system, there's still a
considerable risk if you don't practice good money management. In Forex, your
trading system tells you what trades you take, but your money management system
is even more important because it tells you how many to take. You can take the
right trades, but risk too much on them and still end up with a loss. Good
money management in Forex is all about staying safe so that you can profit from
your proven Forex trading system in the long run.
Staying Safe In The Shark Infested Forex Waters
In Forex, there are many "sharks" that would try to
convince you that their system is the answer to all of your problems, but many
of them are only trying to con you out of your money. To tell the scams from
the real deal, you only need to apply common sense when you're making your
decision. If it sounds too good to be true, it probably is, and in Forex you're
not going to double or triple your money in a matter of weeks no matter how "good"
the system is supposed to be. A more realistic expectation is 5-10% return each
month, and if you can find a system that delivers that on a consistent basis,
you've got a winner in your hands.
Even more important is your Forex money management system. The
best practice is to limit your risk per trade to 2-4% of your total trading
capital, because this will increase your size when your system is on a good
run, and reduce your size when your system in on a losing streak. You should
allow your profits to compound as you go, and make additional investments at
regular intervals to further increase your Forex trading profits.
Staying safe in the dangerous waters of Forex is easy if you
have a proven Forex trading system, and practice good money management. The key
is to focus on protecting your capital and surviving for the long term, and
your profits will come in for sure.
I've been a full time Professional Forex Systems Developer since
2007. Forex trading is my passion, which is why I really love helping anyone to
overcome their challenges and become profitable in their own Forex trading. If
you're just getting started in trading Forex, or if you'd like to take your
trading to the next level, I'd love to help!
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