If
you've just started the process of trading in the Forex, is able to determine
how you will achieve success in Forex? If the answer is no, it may be one of
many people who were attracted to Forex trading in order to achieve quick
profits, and for a new lifestyle and the resignation of the permanent job. If
so, then you do not equip yourself from mental hand to look at your trading as
a new work. And this is very important because you'll be able to take
high-quality trading for long periods of time, a very professional manner
decisions.
For
example, one of the roads by the novice traders is to conduct a quick kill -
unintentionally - by using large amounts of power in all trading operation in
Forex. As a result, they start trading operations surplus and putting their
accounts in a high degree of risk. The following is an example of how easy it
is to fall into such a trap.
Imagine
that you have the amount of $ 10,000 account balance, and decided to open up
the process of trading in the Forex valued at $ 5,000, an increase of 50% of
the account value. Assume that each step is equal to $ 50, and I have
gravitated to this process of trading because you thought that you can achieve
victory by 200 points, equivalent to $ 1000. And it is a good thing if it was
just fine.
However,
you should be aware that this traffic is very dangerous, and indicates a high
degree of patience, lack of experience deliberative. The reason is that the
stainless margin for the use you have, and that is the value that is owned to
support open positions, is now worth $ 5,000. Meaning that if the price moves
in the opposite direction to your situation by only 100 points, you will
receive a call from your broker terms of margin, and will be living close your
trade automatically.
You
will also lose the $ 5,000 you risked at the beginning, which will leave you
depressed and frustrated. So what is easier to occur such negative result? If
so, I realized that the Forex market cut hundreds of points a day, it will
conclude that this is a very serious risk.
Which
increases this problem is that most novice traders like to see a lot of
movement when they are to Forex trading, and this is because they think that
they have the best opportunities to make big profits if they open and close new
positions constantly. As a result, they are baptized to do the movements daily
use shorter time frames, which are for an hour or less.
When
you choose the currency pair will be traded in the Forex market, you are
investing in the comparison between the economic and political situations of
the countries of these currencies. For example, if one of these countries went
through a significant deterioration in its economy, the performance of its
currency will fall against other currency.
Charts
for short time frames cannot detect such events well, which could lead to
mislead about opening new positions in exchange for a long-term pattern. Under
these circumstances, it is possible to easily sustain a loss of 100 points.
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