How to minimize losses in Forex

Most newbies looking to make money on Forex for some reason believe they can easily turn a thousand dollars into a million.

And they can do it in just a couple of months, then enjoy life on the islands by the warm ocean.

Unfulfilled expectations are the cause of disappointment and the loss of even existing funds.

To minimize losses in Forex, especially at the beginning of your career, you should understand how much you can realistically earn without risking your own money.

In reality, it's not that much; traders who have been working consistently for many years earn no more than 50% per annum. So

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

The point is that traders don't trade their own money, but investors' money, receiving a percentage of the profits; sometimes a successful manager has up to several billion dollars under management.

The percentage of remuneration is 10-20%, so it is not difficult to calculate how much such a trader will earn with a profit of hundreds of millions.

What should you do to minimize losses from Forex trading?

• Correctly calculate profit – when starting your trading, you must immediately give up the desire to earn a certain amount; profit should be calculated only as a percentage of the existing deposit.

• Increase volumes using leverage – increase the volume of trades opened only by increasing the deposit, not by using leverage. Attracting investors to a profitable account is not as difficult as you think.

• Don't 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 ways there are to be left 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

• Don't make Napoleonic plans - from the very beginning, do not set yourself profit goals, just open transactions, the pursuit of big profits always ends up draining the deposit.

• Pay attention to the psychology of trading http://time-forex.com/osnovy/psihologiy-forex surprisingly, the reason for most mistakes is hidden in psychological factors.

• Always bury losing trades - it would seem a funny statement, but those who have traded on Forex are familiar with the feeling when you wait until the last cent, hoping for a trend reversal.

These tips may not help you make huge amounts of money, but they will definitely save you money and protect you from losing your deposit.