What awaits a beginner in Forex.

Most people who are not familiar with the principles of the exchange have a far from wild understanding of Forex.

The reason for this opinion is the wrong approach to trading and common mistakes of novice traders themselves.

With proper organization of trading, you can reduce the likelihood of losses to a minimum, and this is not as difficult as it might seem at first glance.

The main risks in Forex and ways to reduce them.

1. Errors in choosing a broker are fraught with slippage and unexpected widening of spreads, which can significantly worsen trading results, not to mention the direct intervention of the broker in the trading process.

It is recommended to work only with ECN brokers that use the NON DEALING DESK system in their work; examples of such companies are given in the article “ ECN brokers ”.

2. Large leverage - it is margin trading that causes large losses or completely lost deposits; in the USA, for example, there are strict restrictions on the use of margin trading in trading.

Beginners are advised not to enter into transactions with a volume more than 10 times the volume of their own deposit at first.

If possible, it is better to completely abandon leverage at first, this will save your money and better understand the market. 3. Deposit drain - complete loss of funds in the account as a result of a trend movement against an open position.

If you listen to the previous recommendation, you are unlikely to encounter a similar phenomenon if your strategy still involves the use of large leverage. The main remedy against losing your deposit is stop loss .

4. Losses as a result of incorrectly opened transactions - most of the trader’s open transactions turn out to be unprofitable, which gradually leads to a complete loss of the deposit.

To solve this problem, you should exclude spontaneous transactions, use third-party analytics, and signals to enter the market.

When you come to Forex, don’t try to immediately earn a lot of money, only a few out of thousands have succeeded in this, make trading your job and gradually increase your deposit while honing your stock trading skills.