Common Mistakes in FOREX

In FOREX capital market every trader makes mistakes.

Errors in Order Entry. The quickest way to lose money in FOREX is to make mistakes when you place your orders. Fortunately, every trade entry today has some kind of order confirmation mechanism.

Use Only Risk Capital. The Golden rule of FOREX is to play with small amount of money so even if you lose it, there is still plenty left on account. Risk money should be amount that you would be comfortable to loose.

Start With Enough Capital. If you are considering doing serious business in FOREX, than it is good idea to start with a bigger account. Accounts that are too small have proportionally larger fees and sometimes can even have certain limitation in trading.

Understand the Risks. This is very important factor. FOREX is highly related to different kind sof risks and you have to be aware of them. Sometimes market crushes suddenly and you can not do much about that, but there are some signals like government crisis, officials statements, market trends that troubles might be on horizon and you have to prepare yourself to that.

Take the Time to Learn. The biggest mistake a new trader can make is to start playing unprepared. The basic knowledge of FOREX can save big money.