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DO's and Dont's in FOREX


dhanpreet

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Do :

Do make sure to keep a constant eye on your margin. If your available margin drops too low, your broker will make a margin call. If you don't deposit money within 24 hours, they will sell your currency for the current market value, and you can take substantial losses.

 

Don't :

Don't EVER invest more money than you can afford to lose. All over the internet are horror stories of people investing their life savings into programs. The best advice is to consider your income and your plans, and make sure that necessities are put first. Substantial losses are sometimes hard to recover.

 

Do :

Do utilize stop/loss purchases. These decrease the likelihood of extreme losses. If used correctly, these techniques can actually increase your earnings because it will sell if it gets too high, but continue accumulating as it increases.

 

Don't :

Don't make too many transactions at a time if you plan on carefully watching each currencies movement. Multiple transactions cause problems when timing is as important as it is. Keep your purchases to a maximum of 2-3 at a time. This makes it much easier to buy and sell quickly.

Utilizing these simple do's and don'ts can save you from a potential lifetime of problems. Just make sure to take care with your spending and use common sense when dealing with money.

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  • 2 weeks later...
  • 4 years later...

Do :

Do make sure to keep a constant eye on your margin. If your available margin drops too low, your broker will make a margin call. If you don't deposit money within 24 hours, they will sell your currency for the current market value, and you can take substantial losses.

 

Don't :

Don't EVER invest more money than you can afford to lose. All over the internet are horror stories of people investing their life savings into programs. The best advice is to consider your income and your plans, and make sure that necessities are put first. Substantial losses are sometimes hard to recover.

 

Do :

Do utilize stop/loss purchases. These decrease the likelihood of extreme losses. If used correctly, these techniques can actually increase your earnings because it will sell if it gets too high, but continue accumulating as it increases.

 

Don't :

Don't make too many transactions at a time if you plan on carefully watching each currencies movement. Multiple transactions cause problems when timing is as important as it is. Keep your purchases to a maximum of 2-3 at a time. This makes it much easier to buy and sell quickly.

Utilizing these simple do's and don'ts can save you from a potential lifetime of problems. Just make sure to take care with your spending and use common sense when dealing with money.

I agree with the whole do and don't list here. Margin control, mindset, using SL and TP, overtrade all already included into one big list that dhanpreet share here. As for overtrade i think that is a signal that our greedy already consumed us and must be addressed.

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  • 6 months later...

Do :

Do make sure to keep a constant eye on your margin. If your available margin drops too low, your broker will make a margin call. If you don't deposit money within 24 hours, they will sell your currency for the current market value, and you can take substantial losses.

 

Don't :

Don't EVER invest more money than you can afford to lose. All over the internet are horror stories of people investing their life savings into programs. The best advice is to consider your income and your plans, and make sure that necessities are put first. Substantial losses are sometimes hard to recover.

 

Do :

Do utilize stop/loss purchases. These decrease the likelihood of extreme losses. If used correctly, these techniques can actually increase your earnings because it will sell if it gets too high, but continue accumulating as it increases.

 

Don't :

Don't make too many transactions at a time if you plan on carefully watching each currencies movement. Multiple transactions cause problems when timing is as important as it is. Keep your purchases to a maximum of 2-3 at a time. This makes it much easier to buy and sell quickly.

Utilizing these simple do's and don'ts can save you from a potential lifetime of problems. Just make sure to take care with your spending and use common sense when dealing with money.

Basic thing, you can get this kind of teaching in many places around the internet i would comment about the transaction well that is true to certain extent but multiple transaction could bring more profit depend on the trader who trade with it, if you are one time trader it will be a big loss but how about a trader who trade for more than 3 years and in most of tradings earn by trade with multiple currency?

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  • 4 weeks later...

Basic thing maybe for you but not for him and he is truly right for all part like don't invest your "hot" money insted invest "cold" money. Also too many transaction is bad for us because we cannot focus, even i don't know how much for you but for me it is depend on the condition, basically it is all about don't be GREEDY.

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@myregister: I think a trader who trade for around 2 up to 3 months already know that all investing hot and cold money. But can you do that? Many traders cannot make difference such as hot and cold money especially if that person want fx as main job which sustain a trader life.

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Forex is a place to know what you want, know what the business presents to you because as a trader, you don't have to believe you will make it at all times and it is not always all times that you make it the way you had wanted to. That is basically the main reason certain people see it as a gamble that is filled with ups and downs.

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There are implied rules so far as Forex is concerned and it is not expressly stated that one should take the issue of risk management so serious. As a matter of fact, managing your time well is important in Forex and if a trader needs to know about how to take the best advantage of earning, he will also take the best advantage of risk management.

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There are many things that we shouldn't do when we are a good trader, something like don't let your confidence go higher than yours or take a risk recklessly without any proper analysis or management because it will be bad for your career and further will damage everything you've been built.

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There are many things that we shouldn't do when we are a good trader, something like don't let your confidence go higher than yours or take a risk recklessly without any proper analysis or management because it will be bad for your career and further will damage everything you've been built.

When? You mean if? Well i don't really get it but do and don't has been a good discussion up to now and we share many things. In fact do and don't change in few times, i see that having greed and fear is a need to do thing but control is the most important above all. as for don't is taking risk that you actually cannot bear to lose.

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  • 2 months later...

If you check the original poster's post then you should know about it. Something that i prefer to do in forex is think about the risk and how to handle it, focusing when trade, never let any kind of emotion to disturb me since all my decision based on data or my pure analysis. And don't things to do is Mixing emotions which i think is suck for trader, and impatience to the market.

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  • 6 years later...

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