A trader should know how to avoid losses in forex transactions. He should know about the movement of interest rates and currency price movements in the market. Financial knowledge is crucial to achieve the aim in forex trading. Traders should also prevent him from kekurangtahuan about the market so that it does not suffer any loss or losing money in Forex trading.
He should also avoid greedy behavior in Forex trading, or commonly called overtrading (develop trade too fast and aggressive). Sometimes that is in his mind just on how profit is small, the range of hundreds of dollars, on a single day.
Below there are three things to note in order to avoid or reduce the losses that might occur in your Forex transactions.
1. find the broker who had a good reputation
Traders should take the time to find brokers that have a reputation. Security deposits and a broker integrity are the two main things in choosing a broker.
It is strongly recommended that the trader opens a new account from a company that also had a reputation, which is also a member of the National Futures Association (NFA), and listed on the u.s. Commodity Futures Trading Commission (CFTC).
2. Leverage More
Leverage (leverage) is the ratio between the number of guarantees with funds lent by the broker kepapada trader to enter Forex trade. The higher leverage means more and more spread income (the difference between the money coming in – income – with money coming out/spending).
The size of the position a trader determines the amount of spread income. If the position taken is greater than the income opportunity spread broker profit is getting bigger.
3. do yourself
Traders who Transact real independently can make decisions for themselves without having to rely on other things. So, there is no Forex trading system that is half-half.
Of course there are still many other things that can help you to be more careful in your Forex transactions. For example, you can read this article that discusses about 10 ways to avoid losses in forex transactions, written by compass. The purpose of the forex trading not only just to get ketuntungan, but also to avoid losses.