What the Heck Is infratraderfx.com?

[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. Because access to the market is easy--with round-the-clock sessions, significant leverage, and relatively low costs--many forex traders quickly enter the market, but then quickly exit after experiencing losses and setbacks. Here are 10 tips to help aspiring traders avoid losing money and stay in the game in the competitive world of forex trading.

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. While the majority of trading knowledge comes from live trading and experience, a trader should learn everything about the forex markets, including the geopolitical and economic factors that affect a trader's preferred currencies.

KEY TAKEAWAYS

* In order to avoid losing money in foreign exchange, do your homework and look for a reputable broker.

* Use a practice account before you go live and be sure to keep analysis techniques to a minimum in order for them to be effective.

* It is important to practice good money management and to start small before you go live.

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

* Be sure to understand the tax implications and treat your trading as a business.

Homework is an ongoing effort as traders need to be prepared to adapt to changing market conditions, regulations, and world events. Part of this research process involves developing a trading plan--a systematic method for screening and evaluating investments, determining the amount of risk that is or should be taken, and formulating short-term and long-term investment objectives.

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. Forex traders should only open accounts with a firm that is a member the National Futures Association (NFA), and is registered with Commodity Futures Trading Commission(CFTC) as a futures broker.

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 come with a practice account, sometimes called a simulated account or demo account, which allow traders to place hypothetical trades without a funded account. Perhaps the most important benefit of a practice account is that it allows a trader to become adept at order-entry techniques.

Pushing the wrong button to open or close a position is one of the most damaging things for a trader's trading account. 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. Before you place real money on the line, experiment with order entries.

Find a Reputable Broker

Forex brokers are subject to less supervision than other markets. It is possible to do business with less-than-reputable forex brokers. Forex traders should only open accounts with a firm that is a member the National Futures Association (NFA), and is registered with Commodity Futures Trading Commission(CFTC) as a futures broker.

Traders should also research each broker's account offerings, including leverage amounts, commissions and spreads, initial deposits, and https://infratraderfx.com/ account funding and withdrawal policies. The information should be available to a customer service representative who will be able answer any questions about the firm's services or 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.

Pushing the wrong button to open or close a position is one of the most damaging things for a trading account. For example, it is not uncommon for a new trader accidentally to add to a losing trade instead of closing it. 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. Before you place real money on the line, experiment with order entries.