How not to lose money on Forex.

Losing histories on the Forex market are generally as similar as two peas in a pod, so there are numerous standard recommendations for reducing the likelihood of critical losses.

By following a few simple rules, you'll be virtually 100% protected against losing your deposit and major drawdowns.

Essentially, this is a comprehensive set of measures, including trading recommendations, capital management, and risk hedging.

Losing money on Forex is usually caused by technical problems with trading equipment, improper capital allocation, lack of stop-loss orders, and attempts to make large profits all at once. Therefore, the main components of a loss-prevention system are:

• Reduce the importance of one trade – Forex is not a casino game, so it is quite difficult to hit the jackpot here, attempts to get a big profit from just one trade usually end in failure. There is the so-called "Rule of Ten", according to which one trade should bring profit or loss in the amount of no more than 10% of 10 trades. In this case, having 6 profitable and even 4 losing trades, you will still remain in profit.

• Insurance is a whole range of measures to preserve the deposit, starting from setting stop loss , ending with the installation of a duplicate trader terminal and uninterruptible power supplies. You must be insured against both technical failures and forex crashes.

• Competent distribution of funds – professional traders do not use all their available capital in one trade, even if they are 100 percent sure of its success. You should always leave yourself a chance to recover, so the deposit should not exceed 50% of your capital.

Furthermore, it's important to carefully select a DC; reliable dealing centers guarantee smooth withdrawals and reliable quotes. Forex trading is already a complex process, so it's important to minimize the impact of any external factors.