Avoiding Losing Too Much Money In Forex With These Tips From Brad Reifler
The main factors to always keep in mind are:
1. Limit your orders.
This is a setting which enables you to stop trading once your maximum profit has been achieved. That means you can lock in your profits for the day early, and not risk losing money with a big swing later on in that same day.
2. Stop-loss orders are just as important.
This is the other end of the spectrum. You need to set up your trading to stop when you've lost a certain amount of money. This way you can protect your investments, and avoid taking on a larger loss than you can afford. That's long term protection you're going to need if you want to keep trading.
3. Trading discipline.
This is absolutely essential. You need to be disciplined, in order to remain profitable in the long term. That means utilizing both order limits, and stop-loss settings. The amateur investor will see profit limitation as a problem, because of the potential of some days where you miss out on the opportunity to earn even more.
That's not how the major players play, and that's going to see you losing money before long. The markets are too volatile for anyone to predict, so playing it safe is the best possible way to guarantee you're going to be able to make money in the long term.
Making intelligent investments is only half of the battle. Without discipline, and being okay with only making a certain amount of profit, can you ensure you limit loss potential, and keep the profit coming in on a long term basis.