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Saturday, 22-Dec-2012 08:56 Email | Share | | Bookmark
Forex Trading Analysis: Why Novices Lose?

This time we briefly give few Forex trading analysis tips to help a novice make trading at the free forex demo account more successful for him/her by turning it into the stable source of money earning unlikely to gambling establishments like many suppose by mistake. According to the Forex trading analysis experts there are a lot of books to get the detailed info how to behave to get profits at the Forex, but all this information they offer to review is just hard to remember or at least find its shortened version. Read our Forex trading analysis tips for beginners carefully and try to follow them as closely as it is possible. This will help you to protect yourself from an early disappointment and financial losses which are so common among Forex trading newbies.

The major tips and reasons making you vulnerable at the Forex market and how to avoid making these mistakes over and over again:

Lack of experience

The study of the foreign exchange markets is based only on the principle of trial testing all your trading systems and approaches and the way of mistakes is not the best way of gaining required practical skills to become a successful Forex market trader.
Most Forex brokers offer the possibility of opening training, demo accounts, which provide very similar conditions very close to the real trading environment. With such demo account you can make all sorts of commercial operations, risking only virtual money.
While using a demo account you can see how the markets react to economic news, in fact, without risking your investment capital. However, seriously to your demo account, if you want to get experience.Need more information? Visit our blog and read Forex Day Trading Systems: Candlesticks Appliance. If you simply dismiss your loss, not understanding why they occurred, then you're just wasting your time and bring yourself to disappointment.

Another important point to make your virtual trading is even closer to real life. Take advantages of a demo account provided by your broker before you invest money in trade for a real account.

Lack of reliable trading plan
Following the unreasonable expectations and wasting of time required to obtain the necessary experience is a frequent mistake centered on the main issue - the lack of a trading plan. In fact, there are two levels of planning your work at the Forex market: setting of the most common goals of trade and developing of various options for an individual transaction that you make.
Your most common Forex trading analysis goals should include the currency which you want to trade using leverage and margin amount taking into account the time that you intend to devote to trading. Your trading plan should also include a realistic target for profitability. In addition, your overall plan also needs to have an exit strategy for each trade that would include upper and lower levels of trade.
In other words, you have to determine the level at which you close the position and set take-profit order or in the event of an unsuccessful transaction, the level at which you intend to close the deal, limiting your losses by means of this restraining order.
Inability to use stop loss and profit target orders

When you place a market order and leave it open it denotes the entering the account demo forex analysis and market in general without having a clear vision of when to close a deal. This also means you're actually risking your trading account to lose all your money at once if a trade is not a successful one. For this reason, you should consider adding orders to limit losses for all open positions.
High leverage trading
Depending on your level of experience, the trading arm could become a strong tool to help you maximize your profits, or may cause you to lose your entire capital.Checkout 2.0 profile - demo forex trading account. This is not something that can be easily used, and if you do not understand how it works, do not trade until understand.


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