How to minimize losses on Forex

For some reason, most beginners who want to make money on Forex believe that they can easily make a million out of a thousand dollars.

And do this in just a couple of months, and then enjoy life on the islands near the warm ocean.

It is unjustified expectations that become the cause of all disappointments and loss of even existing money.

In order to minimize losses on Forex, especially at the initial stage of your career, you should imagine how much you can actually earn without putting your money at risk.

In fact, not so much; traders who have been working steadily for many years earn no more than 50% per annum.

Where do multi-million dollar incomes, yachts, houses and limousines come from?

The thing is that traders trade not their own money, but the money of investors, receiving a percentage of the profit; sometimes a successful manager manages up to several billion dollars.

And the reward percentage is 10-20%, so it’s not difficult to calculate how much such a trader will earn with a profit of a hundred million.

What needs to be done to reduce losses from Forex trading to a minimum

• Correctly count profit - when starting your trading, you must immediately give up the desire to earn a certain amount; profit should be counted only as a percentage of the available deposit.

• Increasing volumes due to leverage – increase the volume of opened transactions only by increasing the deposit, and not due to leverage. Attracting investors to a profitable account is not as difficult as you think.

• Do not use extra money - keep on deposit only the amount necessary to open a transaction and maintain it.

Since you can’t even imagine how many options there are to remain without the entire amount. • Stops - which have already been discussed dozens of times, use not only stop loss, but also alternative options for insuring transactions - hedging or special scripts - http://time-forex.com/skripty/automatic-stop

• Do not make Napoleonic plans - from the very beginning, do not set yourself profit targets, just open trades; the pursuit of big profits always ends in losing your deposit.

• Pay attention to the psychology of trading http://time-forex.com/osnovy/psihologiy-forex It is not surprising that the reason for most mistakes made lies precisely in psychological factors.

• Always bury losing trades - it might seem like a funny saying, but those who traded Forex know the feeling of waiting until the last cent, hoping for a trend reversal.

These tips may not allow you to earn a lot of money, but they will definitely save your money and protect you from losing your deposit.