Forex Strategies

Forex trading is one of the most popular forms of investment in Africa,
especially amongst young people. It is relatively low-cost, available 24 hours a
day, and can be accessed from both mobile devices and computers. Anyone
with a mobile phone and 50 dollars to spare can get involved.
But Forex trading is high-risk speculation and 60-90% of traders will lose
money, depending on their Forex broker. Most traders lose money because
they haven’t created (or don’t follow) a risk-management strategy that keeps
losses to a minimum.
Creating a successful risk-management strategy takes time, education, and
patience, but there are a few simple ways to minimize your risk.
Use a well-regulated broker
This may seem like an obvious one, but the number of beginner traders who
fall for Forex trading scams and/or trade with unregulated brokers is huge.
Beware brokers or “Forex experts” who contact you over social media with
promises of guaranteed returns. All well-regulated brokers will list their
licenses at the bottom of their website, and it is only a matter of a few clicks to
verify their regulated status with the relevant authorities. Well-regulated
brokers will also offer negative balance protection, so you can never lose more
than you have in your trading account.
Over the years I have always recommended EXNESS broker to my students
Click on the link below to register with Exness.

fxacademybroker.carrd.co
Test your strategy with an unlimited demo account
All brokers will offer a demo account, which behaves exactly the same way as a
live trading account except the money is virtual. Most good brokers will offer a
demo account that never expires. Having an unlimited demo account means
you can test your strategies and practice what you have learnt without taking
any risks at all.
Keep your leverage low
Once you start trading with a live account, it’s important to be aware of the
leverage you are using. Some brokers will offer leverage of 1:1000 or even
1:2000, and while multiplying your trading capital by 1000 or 2000 may seem
like a good idea, the multiplying effect of leverage also applies to any losses
you make. Best to start with 1:100 as a maximum until you are comfortable
with the effect leverage has on your trading.
Trade the Majors
The “major” Forex pairs are the most traded currency pairs in the world, and
they all involve the US Dollar: EUR/USD, USD/JPY, GBP/USD, and USD/CHF.
These pairs are generally the most stable too. Most brokers will also offer
“minor” pairs and “exotic” pairs too, such as EUR/TRY (Euro/Turkish Lira) or
AUD/MXN (Australian Dollar/Mexican Peso). These exotic pairs are more
volatile and your trading costs will be higher than with majors.
Stay away from crypto
Many Forex brokers will also offer cryptocurrency CFDs, such as BTC/USD
(Bitcoin/US Dollar). Leverage will usually be very low, as cryptocurrencies are
notoriously volatile. But price changes in cryptocurrencies pairs can be huge
and unpredictable, and the risk of “wiping out” your trading account is much
higher than with normal currency pairs.
Use a good copy-trading service
Many beginners do not have the time to watch the markets all day. Thankfully,
many brokers have copy-trading services. Copy-trading brokers allow
beginners to copy the trades of more experienced traders, who then take a
small commission from the profit. Most copy-trading brokers will provide a
breakdown of each experienced broker’s success rate, risk profile and
maximum single loss (called a “drawdown”), this allows beginners to copy a
trader which suits their requirements.
ALWAYS use a stop-loss
The final tip for preventing major losses in Forex trading is to always use a
stop-loss on every trade you open. A stop-loss will automatically close your
trade once the price hits a predefined level. Human instinct is to hold on to a
losing trade, hoping it will become profitable. Unfortunately, this is usually not
the case. A stop-loss can prevent a losing trade from wiping you out, or can
lock in a modest profit, and is one of the most powerful tools in a trader’s
arsenal.
Summary
As mentioned at the top, creating a risk-management strategy takes time,
education and experimentation (with a demo account of course!), but these
eight tips will provide a good foundation and stop you from losing your shirt in
your first forays into the Forex markets.
If you want to learn more about trading profitably, I have a technique that can
make your trading journey easier.
I have an amazing offer for you
Click on the link below to get started
https://chat.whatsapp.com/CKqHHMIAfppBELFevSoam9

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Forex trading is one of the most popular forms of investment in Africa,

especially amongst young people. It is relatively low-cost, available 24 hours a

with a mobile phone and 50 dollars to spare can get involved.

Creating a successful risk-management strategy takes time, education, and

Use a well-regulated broker

promises of guaranteed returns. All well-regulated brokers will list their

verify their regulated status with the relevant authorities. Well-regulated

than you have in your trading account.

Over the years I have always recommended EXNESS broker to my students

Click on the link below to register with Exness.

Test your strategy with an unlimited demo account

any risks at all.

Keep your leverage low

with the effect leverage has on your trading.

Trade the Majors

Stay away from crypto

(Bitcoin/US Dollar). Leverage will usually be very low, as cryptocurrencies are

notoriously volatile. But price changes in cryptocurrencies pairs can be huge

higher than with normal currency pairs.

Use a good copy-trading service

many brokers have copy-trading services. Copy-trading brokers allow

breakdown of each experienced broker’s success rate, risk profile and

maximum single loss (called a “drawdown”), this allows beginners to copy a

trader which suits their requirements.

ALWAYS use a stop-loss

As mentioned at the top, creating a risk-management strategy takes time,

education and experimentation (with a demo account of course!), but these

your first forays into the Forex markets.

make your trading journey easier.

I have an amazing offer for you

Click on the link below to get started

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