Why Almost All Forex Traders Lose Their Investments

It is not a surprise that almost all of the Forex traders finally burn their money. The reason for that is very simple – most of the speculators have too large risks and hope to gian profits. They don’t desire to admit the fact that Forex trading is not about luck and if they were lucky in the beginning, it won’t stick to them all the time. If a person tells you that during a month he made $500 out of first $50, it may be real. Also the truth is that if this trader doesn’t change his trading approach, he may end up with zero. Every trader has to be prepared to the failure.

One of the main parts of trading method is the wise money management. Let’s take a look at the risk levels that might be used when opening a trading position. Risk is the level of % of a current deposit which can be afforded to be abandoned if your trade reaches the stop loss.

The world’s main Forex traders strongly advise that the risk level must keep at 2-6% of the preliminary investment. If you don’t have much trading knowledge, we recommend you to arrange your risk level to no more than 2% only. If the number of your deposit has been changed, the lot size should be recalculated accordingly based on the rule of 2%. If your investment is small and your Forex broker doesn’t let you open a trade with a small risk, it makes sense to move to another Forex broker where minor lots and mini accounts are allowed.

Another key factor in Forex Singapore trading is the time frame you want to trade on. According to the knowledge and advice of the greatest traders, you should avoid too frequent transactions. It is almost impossible to foresee the prices within a day, mainly for beginners. It is tricky and risky to catch the market’s movements during a day.

Your best option would be trading on the daily charts, where each and every Japanese candle stick springs up during a day. Thus you won’t have to spend hours facing your computer trying to make a few dollars. You will need just few minutes a day to make the research of the market and implement the trades. You won’t be nervous and under pressure trading on the daily charts. Trust me trading within a day and scalping requires a strong character and mental health and is not for anyone. Trading on the daily charts doesn’t include high risks and minimizes the chances of creating a mistake.

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