For Beginner Tips To Consider When It Comes To Investing In Online Forex Trading written by: emily velez

 
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Statistics demonstrate that many beginning online Forex traders tend to lose a lot of money in the initial learning stages because they fail to follow 4 primary principles. In this article we'll take a look at what those principles are



1) Emotion Regulation 
While it may be true that online Forex trading can prove to be extremely fun and exciting, you should not get carried away as a result of your emotions. In fact, many successful traders proclaim that they treat it as a "business" as opposed to a hobby. As such, ensure that you focus on the concept of utilizing your trading capital to make 'business decisions" and ensure that your emotions such as fear or greed, do not interfere with your "business decisions."

2) Communicate With Other, Experienced Traders
Another principle that many beginning traders fail to follow is the principle of communicating with other, more experienced traders. While it may be true that reading books and watching seminars about Forex can prove to be useful, an overlooked source of information that many beginning traders overlook is other experienced traders. Said in simpler terms, a wise man continuously learns from the experience of himself, but a much wiser man, strives to learn from the experience of others.


3) Maintain A Realistic Perspective
Another principle that beginning traders fail to follow is the principle of being realistic. Many beginning traders have seen how successful other traders have become, and have developed unrealistically high expectations. However, if you fail to maintain a realistic perspective, you will essentially be setting yourself up for a certain degree of disappointment. As such, try to look at things realistically from the beginning. For example, determine an attainable percentage of winning trades in retrospect to the strategy that you utilize as well as your level of experience.

4) Survive
The number one rule for virtually every online Forex trader in existence is to survive. How do you survive? By practicing proper money management strategies. Every trader has made losing trades. However, not every trader goes broke as a result of their losing trades. Therefore, the number one principle that you should remember is that you should conduct proper money management strategies. For example, a prime example of a good money management strategy would be avoiding the possibility of risking more than 3% of your trading capital per trade that you make. Another good money management strategy would be to ensure that you have a substantial amount of trading capital to make at least 40 trades, if you are a beginner.

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