There are many technologies in the industry to help the traders from losing their money. Look at the market and you will find many traders are using Forex bots, the automated trading platform, the different strategies and many are even taking paid signals. It looks like they do not trust their own analysis and they think the professionals are best and they should take the paid signals to make their money. All these efforts are given for only one goal, not to lose your money. Many people try to make money but the reality is different. All the traders make money and only a few can survive and when it is hard, you will try in any way possible to save your investment. This article will tell you if there are any ways that can save you from losing your money.
Unpredictable nature of the Forex market
At some point, some people often say Forex market is rigged. But in reality, this is the most transparent market you can ever trade. So why do the novice traders in Singapore lose a significant portion of their investment? They have a lack of trading knowledge. New traders always try to win trades. They never realize the fact trading is all about probability. In order to protect yourself from blowing up your account, you must learn the advance method of trade management.
If you truly intend to become a Forex trader, you must learn to embrace the losing trades. Always try to find high-risk reward trade setups in your online trading platform as it will help you to make a better trading decision. Never think you will be able to change your life based on few winning trades. Learning is a continuous process and you embrace the losing trades with an extreme level of precision.
There is one way but
It is very hard for you. It is the practicing of your strategy in demo accounts for a long time. It is hard because the traders cannot wait to live trade with their money in Forex. All they want to make money and they demo account cannot give them and that is why they are not used. You may think the demo accounts are of no use but when they are used with the correct strategy and planning, they can give you the same exercise as you would get when trading in the live account. Thousands of traders have lost their money trying to test their luck in the live market and you should not follow them. Practice in demo accounts for some time and see if you can improve your strategy.
But here is the catch!
Even if you are the best demo trader in the Forex, you will lose money in live trading. Losing and winning are two interwoven factors that which cannot be separated in Forex. Are thinking, why are we telling you to practice in the demo if it does not stop you from losing? It’s because if you do not do this practice, you will not just lose trades but your entire investment. The demo can only reduce the amount of investment you lose, they cannot stop the losses. The professional traders also have losses because it is not possible to predict the future trends successfully. You can only analyze and take strategy but the trend can change because of the news and information. The practice will give you the stamina to withstand the blows of volatilities in the trading.
Does that say I will always have losses?
Do not be sad because every cloud has a silver lining. Try to make your losses smaller and your profit big. It is called the risk to reward ratio that you need to master when you are trading. With this strategy, you can always make a profit even counting the unavoidable losses.
Rachel Slifka is a freelance writer and human resources professional. She is passionate about helping fellow millennials find success with their finances and careers. Read more by checking out her website at RachelSlifka.com.