way to avoid losses in forex transactions / foreign currency:
1. Over trading
Doing
excessive forex transactions against funds that we have. Margin forex trading is a system that is very risky, then we need to take into account how closely should the number of lots that we traded. 10 percent of the funds we have every entry position is one good way.
2. Understanding the effects of a News (Fundamental)
traders transact with relying on the news several times disappointed because it does not match their predictions. It is very important for traders to understand clearly that the news will be announced and find out how to anticipate market. Please read more in Fundamental Analysis.
3. Do not Rely On Other People
successful traders are traders who rely on itself so that it can determine whether the analysis is effective or not, not because it depends on the analysis of others.
4. Confident Over
It is often a major problem in the transaction. Overconfidence is dangerous because sometimes we are not exactly what is happening in the market. Too many factors influence.
5. Chartist
Traders who rely too much
chart in the transaction. Indeed, price movements tend to move in a pattern that already exists but the news (fundamental) or a particular policy may change in the market trend. So in forex transactions anatara better if combining fundamental analysis and technical analysis.
6. Use Stop Loss
There is a dilemma that must be faced in the forex trader in the deal, when they touch the stop loss position back turned towards the price they had predicted. But many cases prove that no harm trader stop loss can be very limited.
7. Simple trading system
There is a tendency that the more indicators that we use in the chart will be more signal we get. But in reality, the more indicators make us confused because each one giving different signals. Using 2 or 3 indicators can be easier for us to enter the market.
8. Automated trading systems
Many forex traders are confident with a particular trading system so that the robot does not intervene at all. Problems begin to arise when the market trend changes. Continued control robotic systems that we use in forex transactions.
9. Trading by Moment
No need to enter the market every day. Take a position when you look at a suitable moment to enter. If there is not a moment, silence is better as he continues to monitor the market.
10. Never stop learning
The beginner is often considered easier to trade forex so that no longer want to take the time to learn forex further. By continuing to learn then you will know more clearly the ins and outs of forex transactions.
11. Take advantage of Free Forex Signal
myriad Internet that provide free forex signals. That is what you get and use it as a second opinion to make decisions open forex positions.
12. Use Cut Loss strategy.