15 People You Oughta Know in the infratraders.com Industry

[Dematteo Atilano]

The global forex market is the largest financial market in the world1 and the potential to reap profits in the arena entices foreign-exchange traders of all levels: from greenhorns just learning about financial markets to well-seasoned professionals with years of trading experience. Many forex traders are able to quickly access the market with the help of round-the-clock sessions and significant leverage. They also have relatively low costs and exit quickly after suffering losses or setbacks. Here are 10 tips for aspiring forex traders to help them avoid losing their money and keep trading in the competitive forex market.

Do Your Homework

Just because forex is easy to get into doesn't mean due diligence should be avoided. Learning about forex is integral to a trader's success. Trader success is dependent on forex knowledge. This includes the geopolitical, economic, and political factors that influence the currencies of traders.

KEY TAKEAWAYS

* Avoid losing money on foreign exchange by doing your research and finding a reputable broker.

* Create a practice account before going live.

* It's important to use proper money management techniques and to start small when you go live.

* Control the amount of leverage and keep a trading journal.

* Make sure you understand the tax implications of trading and treat it as a business.

Homework is an ongoing effort because traders must be able to adapt to changing market conditions, regulations, or world events. Part of this research involves the creation of a trading plan, which is a systematic method of screening and evaluating investments, determining how much risk should be taken, as well as formulating short-term or long-term investment goals.

Find a Reputable Broker

The forex industry has much less oversight than other markets, so it is possible to end up doing business with a less-than-reputable forex broker. Due to concerns about the safety of deposits and the overall integrity of a broker, forex traders should only open an account with a firm that is a member of the National Futures Association (NFA) and is registered with the Commodity Futures Trading Commission (CFTC) as a Visit this website futures commission merchant.2 3 Each country outside the United States has its own regulatory body with which legitimate forex brokers should be registered.

Traders should also research each broker's account offerings, including leverage amounts, commissions and spreads, initial deposits, and account funding and withdrawal policies. A helpful customer service representative should have the information and will be able to answer any questions regarding the firm's services and policies.

Use a Practice Account

Nearly all trading platforms offer a practice account. Sometimes called a demo account or simulated account, this allows traders to place hypothetical trades and not have to fund their account. The best thing about a practice account is its ability to help traders master order-entry techniques.

Few things are as damaging to a trading account (and a trader's confidence) as pushing the wrong button when opening or exiting a position. For example, it is not uncommon for a new trader accidentally to add to a losing trade instead of closing it. Multiple errors in order entry can lead to large, unprotected losing trades. Aside from the devastating financial implications, making trading mistakes is incredibly stressful. Practice makes perfect. Before you place real money on the line, experiment with order entries.

Find a Reputable Broker

The forex industry has much less oversight than other markets, so it is possible to end up doing business with a less-than-reputable forex broker. Due to concerns about the safety of deposits and the overall integrity of a broker, forex traders should only open an account with a firm that is a member of the National Futures Association (NFA) and is registered with the Commodity Futures Trading Commission (CFTC) as a futures commission merchant.2 3 Each country outside the United States has its own regulatory body with which legitimate forex brokers should be registered.

Traders should also research each broker's account offerings, including leverage amounts, commissions and spreads, initial deposits, and account funding and withdrawal policies. A helpful customer service representative should have the information and will be able to answer any questions regarding the firm's services and policies.

Use a Practice Account

Nearly all trading platforms offer a practice account. Sometimes called a demo account or simulated account, this allows traders to place hypothetical trades and not have to fund their account. Perhaps the most important benefit of a practice account is that it allows a trader to become adept at order-entry techniques.

Few things are as damaging to a trading account (and a trader's confidence) as pushing the wrong button when opening or exiting a position. It is not uncommon, for example, for a new trader to accidentally add to a losing position instead of closing the trade. Multiple mistakes in order entry can result in large, unprotected losses. Aside from the devastating financial implications, making trading mistakes is incredibly stressful. Practice makes perfect. Experiment with order entries before placing real money on the line.