What a trader should not do.

It's always easier to prevent a mistake than to correct the consequences later, and this principle is especially true in Forex trading.

Here, things are much more serious, as lost money cannot be recovered; no one will refund your capital, despite requests and assurances about the terminal, broker, or internet connection malfunctioning.

Therefore, if you've decided to become a trader, you should know a few things you shouldn't do when trading Forex:

1. Don't use money you can't afford to lose or that you might need soon. The risk of losses for a beginning trader is enormous, and if you lose the money your wife saved for her summer vacation, you'll face "unpleasant" consequences.

2. Trade only with your own money – borrowing or borrowing money for Forex trading is only possible if you're 100% confident in your abilities, have years of trading experience, and have completed hundreds of trades (this doesn't apply to scalpers).

3. Don't use high leverage – often, this is the only thing that can save a beginner from losing their deposit. It's recommended to start with a leverage of 1:20, and even less if your deposit allows. Some financial moguls trade without leverage at all.

4. Don't trade without stops – if you follow the previous rule, trading without a stop loss is no longer very dangerous. In other cases, ignoring a stop loss can result in losing your deposit, and ignoring a take profit will prevent you from locking in profits.

5. Don't get carried away – most professionals recommend no more than 2-3 simultaneous open trades and no more than 5 orders per day. Even if you're lucky and all positions close profitably, it's advisable to take a break from trading for a few hours after 5 closed trades.

6. Impulsive decisions – or opening trades at random – always result in losses. Even if you're lucky, the profit may be in the tens of pips, while the loss can be much more significant.

7. Don't use automated advisors – such scripts are extremely capricious and often drain your hard-earned money. If you really want to trust someone to manage your hard-earned money, it's better to choose a less risky option, which is described in the article Forex Investments .