BEGINNER’S GUIDE: 3 Tips That Will Save You Money

1. Money Management Skills Are Essential
Every person who trades in the Foreign Exchange market is going to experience a loss from time to time. You may think that your strategy is foolproof but in fact, no strategy is completely void of being able to fall short. The bottom line, your trading strategy is nothing without solid money management skills and a disciplined trading attitude. A good way to practice both is to never risk more than 3% of your trading capital per trade and consistently make sure you have plenty of trading capital so that you can make at least 40 trades when you are first getting started.

2. Always Use A Stop Loss
A stop loss will let you predetermine your risk all the way down to the pip and really has no drawbacks at all. Although it may not be all rainbows and butterflies, a stop loss forces you to consider when the trade you’re about to put on would be considered a failure by you personally. This will benefit you in the long run as you will not have to fear that one bad trade will destroy your entire account.

3. Don’t Get Your Hopes Up

Forex traders who are realistic are far more likely to succeed in the market than those who are not. Making money by Forex trading is in no way guaranteed, as it takes a lot of work as well as just a general sense of being humble. If you expect to make a bunch of money overnight without really putting in hardly any effort, you are more than likely going to fail.