According to our research, quite a few new and inexperienced Forex traders are clueless about how to manage risk in each trade. The result is often predictable: they lose all their money.
This is what appears to be occurring. Forex has become so popular, in such a short time, that many new traders have just jumped in feet first, opening accounts and trading without any preliminary thought or planning as to how to go about it.
It is obvious that this approach is problematic due to limited understanding of how to deal with trading foreign currencies and the major monetary risks involved. Frequently, new traders attempt to trade before they have taken the time to educate themselves.
And the result is a total wipe-out of their account balances. In all honesty, trading using a demo account is just not the same as trading with real money. The emotional control, trading principles, and rules differ, and you will find yourself taking more risks with the demo account and not enough risks with the live account — often to your detriment.
Change the way you think: educate yourself first, trade second. As a matter of fact, just about everyone needs to change their mindsets about Forex. First learn how to trade correctly, and THEN use that knowledge to trade in the market.
An integral part of that approach is that the FIRST element to trading Forex that should be learned by new, inexperienced or unsuccessful traders is to MANAGE RISK FIRST each time they trade.
Recently a video by Bill Poulos, one of the best, most highly respected Forex educators, has come out, and it educates traders as to EXACTLY what they should do when trading Forex. Plus, it shows how traders can eliminate risk, thereby putting more trades in their favor. It’s a fresh approach that is completely different than what other experts teach.
Go here to see an informative video:
http://theforexnittygritty.com/private-forex-training/
By first learning how to manage risk, you will change your trading because you will approach Forex trading in a totally different manner, including a plan for eliminating risk, and establishing a solid set of ground rules to govern your trading.