Discussion in 'Newbie Questions' started by baliforex, Dec 4, 2013.
Exactly should equip oneself first to lessen the risks on trading.
Every one make mistakes especially in terms of trade. We cannot avoid making mistakes. The best way to minimize our mistake is, first have understanding about the trade, for it to be more interesting, open a demo account and do a lot of practice. Even if you make mistakes, don't be weighed down by the looses involved, because many successful traders today made mistakes but were not brought down by the mistakes rather they worked harder to make sure such mistakes do not repeat itself again. Mind you, making mistake is natural but do not let your emotion control you when you make mistake.
Well it will not happen in a day. You will do mistakes but with the experience of the market your mistakes will decrease and your success will increase. So learn from your mistakes and increase your success and let others learn from your success.
Identify your weaknesses and shortfalls and try to overcome and change them, and do better in your next trade.
To minimize your mistake you should make sure you are not psychologically vulnerable and a very tough mentality person who never break rules he sets for trading.
In forex there is always probability for a trader to make mistakes but in order to minimize mistakes its important to have a trading plan and a trading journal. It helps in keeping track of previous trades and the mistakes you made and that will help in avoiding it from occuring in future trades.
In order to minimize mistake you need to have a proper money management by trading in accordance with risk level that is appropriate for the size of your account. And also being discipline is also vital.
Practice demo account well before enter into live account, also follow strictly your trading strategy and make well risk management. Last thing, keep learning!
you should comes up with a plan .
you should got a lot of experience .
this is the only way you can minimize your mistakes.
For newbies, try to practice demo account to get a better understanding about forex trade, also make strictly risk management plan and trade strategy, never put the eggs in one basket。
I believe there are a few ways you can minimize your losses. Most importantly is that you understand the market and now why it reacts/acts the way it does. Just as important is that you place a stop loss on your trades. When I am trading my objective is to minimize my losses and maximise my profits. I place a stop loss at a level where if the market would move against me it wouldn't cause me such a big negative effect that it would not allow me to trade again. In other words you need to have good money management skills. One other important way is by finding a broker you trust that is reliable. a broker that will treat you honestly.
The mistake usually from the following factors: lack of knowledge and experience, bad mind, wrong trading strategy, poor brokers etc. Keep learning and reconsider trade histroy to find the real problem, and then improve it.
I agree with you David you covered it perfectly. Stop loss is essential to avoid losses and helps you also control your emotions during trading.
All people make mistakes. It is not a big deal. The problem is, if you do not correct your mistakes. It will help to get out of problems in trade.
It is good to minimize risk to limit your losing trades. The use of stoplossin trading and the using less leverage are ways to minimize risk in trading. And you have to be very well prepared before going into forex is a very help way.
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