Forex : Advice 6

Trading Forex is certainly not easy, otherwise everybody will be millionaires. In fact, 90% of Forex traders are actually making losses.

Forex market is too complex and there are too many factors that are giving huge impact to the daily fluctuation. The pure technical analysis or the fundamental analysis can never forecast the Forex market trend accurately.

Invest more time to really understand how Forex market work, especially study the trend behaviour characteristic in specific time frame before committing with your hard earn money.

Forex : Advice 5

Another major mistake done by Forex traders is to overtrade their Forex account, failing to measure the risk their margin can absorb. Positions taken always surpasses what the margin deposited can undertake. Margin trading is actually a two-sided sharp blade sword.

Most often, Forex traders only need USD1000 to hold a USD100,000 position, but it doesn't mean that an account with USD5000 must hold up USD500,000 position. Treat a USD100,000 position as USD100,000, not just USD1000.

An experience principle is, not to use more than 10% of the margin in trading Forex.