Currently, we are living in harsh financial times and many people in Singapore are looking for alternative options to make money. The forex trading market is one of the biggest markets in the world and due to this; traders can still make profits amid volatility.
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Forex is not a Get Rich Quick Scheme
For many beginners in Singapore, accessing forex trading websites brings about lots of excitement. Some imagine that forex is all about making colossal amounts of money almost instantly.
Today, numerous forex trade websites across the world can take advantage of inexperienced traders. If you are aspiring to become a trader, conduct sufficient research first before you can risk your money.
You can find relevant information online which can come in handy to guide you through the trading process.
Too Much Information can be Overwhelming
The Singaporean forex market is gaining momentum and there’s lots of information online which can confuse new traders. Let’s look at a few tips that can be beneficial for you as you venture into forex trading. Incorporate these tips into your trades to prevent losses. Always remember that while there’s potential in trading, there are numerous risks involved.
Never Rely on Luck
If you’re considering forex as a long term venture, you should have a robust plan. Avoid venturing into forex trading without a proper money management system and trading strategy in place.
Whether you are a beginner or a seasoned trader, losing in forex is inevitable. It’s however how you handle your losses that determine the kind of trader you are. As a trader, you are likely to lose more than once. Losing constantly as a beginner shouldn’t be reason enough to force you into closing your forex trading account. Here is an example to guide you through.
Assuming you use $10,000 to open your SG forex account. You have an opportunity to decide the amount you can risk for each trade. The more you risk, the more profit you are likely to make. For instance, if you risk 20% of your investment per trade, 5 bad trades could see you closing down your account. If you choose to risk a smaller percentage such as 5% of your investment per trade, you will reduce your margin call chances while increasing your chances of making profits.
Money Management is more than Avoiding Margin Calls
Apart from avoiding margin calls, money management guarantees stable profits. The forex industry continues and you can leverage the available tools to succeed. Avoid relying on your emotions when trading forex. Rather, have a well-formulated and robust strategy, capable of meeting your trading and personality needs.
Utilize Leverage Accountably
Margin and leverage are some of the most commonly used words in any forex site. While margin refers to the trader’s money, leverage defines the broker’s money. Traders should understand that; leverage enhances the chances of making huge profits. However, it also increases risks and can destroy a trader’s account.
For instance, a 100:1 leverage means that traders can trade up to 100 times more than would have been the case had you not borrowed the money. This also means that a trader has increased the chances of losing the money by 100. Utilizing high leverage means that you’ve allowed the broker else to operate your forex account. You can only utilize high leverage if you’re assured of winning. This, however, can be risky if you are not certain of winning.
Stick to Your Strategy
According to studies, nearly 60% of losses in forex happen because traders hardly hold on to their plans. Never mix emotions with forex. Avoid getting overly excited as this can lead you into making the wrong decisions. Allow your strategy to control your forex decisions.
Always research extensively to ensure that your preferred strategy meets your needs. Identifying the ideal strategy may take time. Still, you shouldn’t venture into the forex industry without sufficient experience as this can result in massive losses. Without a robust strategy, you’ll become a random trader, joining the many traders who fail in the forex market. Devising a robust strategy and holding on to the same increases your chances of increasing.