FOREX RISK

The forex trading should be simple say several scholars. Undoubtedly those who are complicated because they can not operate or have not learned well. Many when introduced into the trading first thing they do is play with your demo account by operations meaningless and worse thinking that an account is like going to the casino and gamble to gamble becomes his emblem. 

They start risking amounts that have nothing to do with the reality of a real account and live a constant deception.

When many begin to trade Forex the first thing they do is open demo accounts of $ 100,000 or $ 500,000 to “practice”. Practice has nothing wrong, wrong to think that the novice trader is doing the right things. By having such a large initial amount rookie trader also makes “big” operations and there begins the great fallacy. Win or lose (that’s right) capital mismanagement eventually destroy it.

Whether abusing the number of lots or operating many pairs both novice trader this end risking more than necessary. The grand finale is that one way or another to end the trader making this a “habit” and repeats the same bad habits when trading a live account. It is a fact that many of the large losses that traders have is in large part because repeated bad habits from the time operating with demos the truth is that the trader falls back into a vicious circle. Do not forget that human beings act many times but this habit is fatal in trading. As the Master in Management Stephen Covey in his book The Seven Habits of Highly Effective says, “habits are like chains loosen difficult and sometimes we can never our little willpower”. This applies to all friends, work, family and even the forex.

When you. forex trading begins first thing to do is learn to respect the market and not letting it fulmine (as the vast majority of inexperienced happens). A trader can not risk more than 2% of the total amount of your account. Simply a matter of survival. Eye, and talk about any type of account and it is a standard, mini or microbead. Regardless of the maximum capital amount risked must not exceed 2%.

A trader who risks only 2% of the total capital held by each operation interruption could lose up to 30 times and still hold almost 55% of their money. That’s survival and that is to manage the money wisely. Now if someone loses continuously for 30 times the minimum you should do it is check your strategy or study from the base (but not explain to me how you can lose many times) but hey that’s another matter. The truth is that this trader may still participate in the mark.