To Minimize The Risks In Forex Trading To Minimize The Risks In Forex Trading – I never “met” with a friend from the USA in a forum that talk about the problem of investment. Long story short, he asked me about the investments I’m doing. I say that because I am a forex trader, of course, both of which I do yeah in the field of forex trading.

Well, there’s the interesting thing about his comments heard (read) my answer was, that I wish to make here so that you know also. Well, in essence, he was very skeptical with forex trading. He said, investment in forex trading is an investment that is very risky. I of course ask, what is the reason he argues like that.

According to him, there are 2 main reasons that make investing in forex trading is becoming too risky:

  • Leverage is too high
  • Broker naughty (scam)

In essence, I received 2 reasons he pointed out. But according to me, there are things we can do to avoid the risk of excessive with regard to 2 things above, among others:

Risks Associated with Leverage

Indeed many brokers that offer leverage of fantastic. As we know, the leverage here serves as a leverage to increase the strength of our transactions. The higher the leverage that we use, the higher the leverage us, and the greater the chance we have to take advantage of the capital that we invested.

Of course the brokers offer high leverage to traders, because they also compete with other brokers.

It is legitimate only if we take advantage of the offer high leverage of the broker where we trade. Only, we need to remember the basic principles of investing: the higher the profit that we would expect, the greater should be our responsibility.

To minimize the risks associated with leverage, which we can do, among others, is a varying quantity per trade with the amount of capital we, control the used margin and available margin as well as the strength of the margin is there to anticipate price movements may not be in accordance with what we expect.

Bottom line yes back to the margin of the management and money management, and adjust the options leverage your habits and your trading style. I myself still use the leverage of 1:100 because it is already usual and still feel comfortable with the leverage of that, because of the coincidence of the broker first place I learned trading only offers the choice of leverage of it. So, how much leverage you use actually depends on your choice.

The risks Associated with the Broker Naughty (scam)

Who the hell gak kesel, if we have the cape-cape trading, ehh… we WD it turns out that the broker is not paid WD we do it or… yes paid anyway, but the yogyakarta late, aka the wait time than promised. Wew, clear bikin kesel banget tuh! Or, one more thing nih…

We feel our position should still be safe because the SL that we set untouched, ehh… suddenly, when we check, the position is already terclosed gara-gara SL it turns out that accounting is already kesabet. Well, sebel it! Want to protest also usually complicated procedure. The result is the most-most just make breakfast… Nah tuh!

To avoid a broker who is naughty and also the broker are a scam, preferably before we determine the broker where we trade, we need to see and check if the broker is to be trusted. There are many sources where we can find a broker-broker where a relatively reliable and safe for our invested capital.

You can search information on the web about the legality of a broker and also look at the strength of support for capital of the company supporting the broker. Mm… If my own hell is like asking fellow trader who is more experienced and has proven ease of WD and “honesty” of a broker before deciding to use the broker in the trade.

Well, from the complicated search for the information themselves, though. And I have found a broker that comfortable, I usually have to “loyal” by the broker. Males also, kalo mutually broker.

Ok! That’s the thing that we can do to minimize the risks in forex trading. Of course in the end, the results of which we will get from this trading will be very influenced by many factors, such as the trading system and strategy that we have adopted, the discipline we follow a trading plan and also psychological factors. Indeed, there is no investment risk-free.

One of our duties as a trader (investor) is to understand and manage these risks. Warren Buffet, said, “Risk comes from not knowing what you are doing”. So, get to know and understand everything, including the risks before you decide to do something, in this case including also in the invest.

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