The global Forex market is potentially profitable, with its low fees and possibilities to trade with leverage. However, it can also be a bit of a roller coaster. To avoid losing money with Forex trading, learn how to interpret Forex news, including both technical analysis and current events. A successful trader should also create a plan. While leverage can increase gains, it also increases losses, so use it with caution and practice with a demo account before going live. Furthermore, avoid both over trading and under trading. Finally, make use of stop-loss limits as a way to minimize losses.
- Learn to properly analyze forex news both holistically and in a technical sense.
- Use a concrete and specific plan and make sure your leverage is an appropriate amount.
- Remember to keep from overtrading or undertrading and utilize stop-loss orders to minimize losses.
“Traders will do well to learn how to identify when a market is over-extended long or over-extended short to determine when spikes may occur.”