OF CONTENTS
FOREX & CURRENCIES TRADING STRATEGY & EDUCATION
10 Ways to Avoid Losing Money in Forex
By
JEAN FOLGER
Updated April 17, 2022
Reviewed by
SOMER ANDERSON
Fact checked by
YARILET PEREZ
The global forex market is the largest financial market in the world and the potential to reap profits in the arena entices foreign-exchange traders of all levels: from greenhorns just learning about financial markets to well-seasoned professionals with years of trading experience.1 Because access to the market is easy—with round-the-clock sessions, significant leverage, and relatively low costs—many forex traders quickly enter the market, but then quickly exit after experiencing losses and setbacks. Here are 10 tips to help aspiring traders avoid losing money and stay in the game in the competitive world of forex trading.
Do Your Homework
Just because forex is easy to get into doesn’t mean due diligence should be avoided. Learning about forex is integral to a trader’s success. While the majority of trading knowledge comes from live trading and experience, a trader should learn everything about the forex markets, including the geopolitical and economic factors that affect a trader’s preferred currencies.
KEY TAKEAWAYS
In order to avoid losing money in foreign exchange, do your homework and look for a reputable broker.Use a practice account before you go live and be sure to keep analysis techniques to a minimum in order for them to be effective.It's important to use proper money management techniques and to start small when you go live.Control the amount of leverage and keep a trading journal.Be sure to understand the tax implications and treat your trading as a business.
FOREX & CURRENCIES TRADING STRATEGY & EDUCATION
10 Ways to Avoid Losing Money in Forex
By
JEAN FOLGER
Updated April 17, 2022
Reviewed by
SOMER ANDERSON
Fact checked by
YARILET PEREZ
The global forex market is the largest financial market in the world and the potential to reap profits in the arena entices foreign-exchange traders of all levels: from greenhorns just learning about financial markets to well-seasoned professionals with years of trading experience.1 Because access to the market is easy—with round-the-clock sessions, significant leverage, and relatively low costs—many forex traders quickly enter the market, but then quickly exit after experiencing losses and setbacks. Here are 10 tips to help aspiring traders avoid losing money and stay in the game in the competitive world of forex trading.
Do Your Homework
Just because forex is easy to get into doesn’t mean due diligence should be avoided. Learning about forex is integral to a trader’s success. While the majority of trading knowledge comes from live trading and experience, a trader should learn everything about the forex markets, including the geopolitical and economic factors that affect a trader’s preferred currencies.
KEY TAKEAWAYS
In order to avoid losing money in foreign exchange, do your homework and look for a reputable broker.Use a practice account before you go live and be sure to keep analysis techniques to a minimum in order for them to be effective.It's important to use proper money management techniques and to start small when you go live.Control the amount of leverage and keep a trading journal.Be sure to understand the tax implications and treat your trading as a business.
