Each and every serious trader will lose money on some trades. There is no such thing as a guaranteed profit every time. Good traders, however, know how to minimize their losses and maximize their profits. According to some estimates, about 90 percent of traders in the forex market lose money. An intimate knowledge of the forex market and a little bit of luck is necessary to make profitable trades. With a bit of hard work, you can join that successful 10 percent of profitable traders.
One of the easiest ways to protect yourself is to start with enough expendable income to avoid going broke. Some experts recommend starting with $10,000. This is a good number to start with; $10,000 will assure that you do not go broke right away while you are still getting a feel for your actual trading strengths and weaknesses in real life settings. You can start with much less if necessary, though. With as little as $500 you can begin trading in the forex market.
There are some things to be aware of if you plan on trading with this smaller amount. For one, leverage should be avoided in most instances since you will not have the money to pay back a loan if and when a trade goes sour. You should also be trading as little as possible while still making profitable trades. Think of your individual trades as percentages of your total bankroll. You will not want to put your entire bankroll at risk with one trade. This will more than likely lead to you going broke very quickly.
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