We all know that the forex market is the largest financial market in the world, with an average daily trading volume of $6.6 trillion globally. The profitable potential of the forex market attracts traders at all levels, as well as national retail and institutional forex dealers. Due to the 24/7 operation of Forex trading and the low barriers to entry, combined with varying leverage ratios and low transaction costs, many traders are able to enter the market quickly.

However, trading is not easy!

Many traders quit the forex market after suffering losses and setbacks. In order to avoid major losses in forex trading, today Tianyan Jun has compiled ten tips on Forex trading, which can ensure that traders who are interested in trading avoid losses and are eager to break through the fierce competition in the Forex market! Make it through!

1. Do your homework before trading

Everyone who is new to forex trading should understand that just because the entry barrier to the forex market is low, you should not jump into the market without doing your homework. Forex trading is a complex and highly specialized job. Before stepping into the trading door, beginners should first understand the basic concepts of forex trading, including the types of objects traded, factors affecting the forex market, and commonly used trading instruments. Only in this way can novices work out different trading plans or strategies according to the market conditions, so as to be ready to fight in the forex trading market.

2. Find a reputable broker

The Forex industry has relatively little regulation compared to other industries. Because some traders may choose to work with a broker with a bad reputation, ultimately resulting in a loss of principal and profit. Therefore, when choosing a broker, in addition to regulatory qualifications, traders must choose a broker with good reputation and integrity.

In fact, there are many reputable and reputable brokers in the Forex industry that can provide security for traders' funds and provide the necessary trading training and assistance. These brokers focus on integrity and practice, allowing traders to trade forex with greater confidence.

3. Conduct mock trading several times

After opening a trading account or entering the trading market, many traders do not conduct simulated trading for a period of time, but rush to invest real money and rush into the market with their bare hands to trade. As you can imagine, most of them fail. Many successful traders remind us of the importance of simulated trading before actually trading. Traders can choose the corresponding platform, register a free demo account, and conduct simulation exercises. Through simulated trading, traders can familiarize themselves with the market, test trading strategies, improve trading skills, and avoid making mistakes in real trading. Therefore, before the actual trading, be sure to conduct sufficient simulation trading to prepare for success.

At present, on the Forex APP, investors can participate in a mock trading week competition to improve their trading level! The first three can also share the prize money!

4. Keep your charts clean

After opening a real account, traders may use many of the technical indicators available on MT4/5 to analyze the market. While some of these indicators are great for forex trading, remember that indicators are always valid when they are appropriate for you.

For example, some traders, in their own MT4/5 trading platform interface, use multiple shock indicators, trend indicators, etc., these indicators tend to send different signals, causing you to trade orders wavering. In addition, your chart contains too much "junk" information, which is also a big cause of your trading problems, but this point is easy to overlook.

5. Set a stop loss

Keep in mind that the money in the account is earned by your own hard work, so traders must protect their account funds when trading. Stop loss is a survival skill that every trader must master, especially for those who are just entering the market. Some traders may consider a stop loss a shame, as if they were losing to the market. However, there is one thing you must realize: Stop loss is to survive in the market. Actions taken in order to survive are instinctive, there is no joy or joy. Therefore, in trading, do not blindly pursue profits, but to rationally control risks and protect their account funds to ensure long-term trading success.

6, small capital to start trading

After conducting mock trading and making the necessary preparations, traders can open a live trading account with a small amount of money and trade with real money. It is important to note that there are essential differences between real trading and simulated trading, the most obvious is the difference in mentality, because this is their own hard-earned money, not virtual money. Therefore, traders will be very careful to handle all aspects, such as conducting adequate trading analysis, making trading plans, keeping trading logs, etc. Even if you fail in a solid trade, you can sum up more failure experiences and avoid the risk of losing more account funds. In conclusion, before entering into solid trading, traders need to be well prepared and proceed with caution to reduce risk and increase the likelihood of success.

7. Use leverage wisely

We know that leverage is the beauty of forex trading. However, leverage is also a double-edged sword, which can cause unnecessary trouble to traders if not used properly. If they use too much leverage, higher than they can afford to trade, the losses will be very high. Traders need to take advantage of their advantages and can avoid their disadvantages, and should trade with the leverage ratio that is most advantageous to them.

8. Keep a trading journal

Keeping a trading diary is an effective way to learn both failures and successes in forex trading. The trading diary contains records of trading activities such as dates, trading instruments, profits and losses, as well as the performance of the trade itself and trading sentiment. This is very helpful for becoming a professional trader. Although technological changes have made paper trading obsolete, and the vast majority of traders now use software or similar tools to trade, there are huge benefits to maintaining a trading diary. Trading diaries play an important role in the growth of traders by cultivating good trading habits.

9. Never be complacent

Complacency is one of the biggest causes of forex trading failure. Often without the motivation to be aggressive, complacency hinders personal growth and limits the possibility of achieving greater profits. Successful Forex traders are always aware of the importance of learning trading techniques and studying market trends, and they constantly adjust and optimize their trading systems to adapt to the ever-changing forex market. In the absence of an incentive to optimize, complacency will become a stumbling block to their development

10. Keep learning to improve cognition

The key to becoming a successful Forex trader is the study and understanding of trading skills and knowledge. Knowing what you are trading and understanding the big picture is important, especially for novice traders.

Sum up

The Forex market has many advantages that other financial markets do not have and is extremely attractive to many traders around the world. Forex trading can bring traders large profits and returns, but it may also bring high capital losses. Therefore, a trader needs to possess the above 10 trading characteristics and methods in order to avoid losses.

Anyone with time and effort has the opportunity to become a successful forex trader in the industry. Maintain a good forex education and goal-oriented outlook to ensure the formation of good habits that will lead to beneficial traits that promote trading careers, increase the value of skills and optimize trading performance.