Instead of asking questions about making money with Forex, you’d better ask how you can prevent losing money. Because losing money is very easy with Forex. Only when you can keep your losses to a minimum, you can start thinking about actually making money with Forex. In this article I’ll give you 3 tips to prevent you from losing your hard-earned money. At the new international website Commoditytradealert.com you can find several ways to make the best choice.
1. Learn The Basics Of Forex And Investing In General
Forex trading is easily accessible for everyone, but that doesn’t mean that you have to walk away from it. If you’re too lazy to make a real study of Forex, you’ll never see day trading afterwards as a business you’ll be able to live from.
- The biggest part of the learning process is in the trading itself and the experience you gain with it. But also the basic principles are important. Without a good foundation you won’t start anything. Not even in Forex trading. Here you’ll find a good basic forex course.
- Also keep in mind that you’ll never be out of practice. If you want to live from Forex and want to make money with it, you’ll have to stay sharp and keep on learning. This certainly also applies to keeping up with the news. Knowing what’s going on in the world can come in handy.
2. Beware Of Crooks: Choose A Reliable Forex Broker
Unfortunately there are also criminals in the Forex world who are after your money. The fact is that there are Forex brokers who don’t take it well with the rules and steal from their clients. And you can’t make any money with Forex, if you choose a broker who doesn’t let you win. Or even worse, one that doesn’t pay out your winnings. A few of the newer options are allready available in countries that you would’nt expect, for example the world of Forex trading is growing rapidly in Mexico.
Important points when choosing a Forex broker are:
- Are they regulated and in which country? (e.g. preferably not in Cyprus)
- How fast they are easy to pay out (depositing is usually okay)
- Is customer service easy to reach? (also by phone)
- What account types do they offer? (preferably ecn/stp)
- Which Forex pairs do they offer?
- What leverage and margin?
- How much spread and/or commission do you pay?
3. Practise On A Demo Account First
Almost all brokers and trading platforms have the possibility to practice on a demo account. Sometimes this can be for a limited time, but most of the time you can also hold a demo next to your “real money account”, for example to test a new Forex strategy. What a demo account can’t do, however, is to mimic the stress and tension that you only experience when real money is at stake. Especially when you’re completely new it’s nice to be able to practice with the platform for a while. Not as bad for a trader’s self-confidence as clicking the wrong button when trying to open or close a trade.