Humans make mistakes. Everybody makes mistakes. In FOREX trading, the mistakes are equal to losses. You can try to trade in FOREX markets without errors. It would be good, but very unrealistic. The best trading strategy is always ready for the errors. Risk is equal to errors and loss. It is better to reduce the risk as much as possible. This FOREX trading strategy advise from epSos.de will help you to make safer investments.
The best risk reduction strategy is also the most simple one. Wise women divide their investments into 100 pieces. This division of investments is also dividing the risk. Divide your capital into 100 parts. Take 40 parts and slowly make 40 investments in different markets and during different days. This will divide your risk of loss by 40 times. The other 60% of your capital should remain untouched. This 60% will give you the protection against very bad mistakes.
The very bad mistakes lead to losses. The bad losses reduce the ability for trading. The inability to trade is equal to the loss of income. Bad investments create negative numbers. In FOREX trading, it is very important to have more space for negative numbers. The untouched 60% of your capital will give you the protection against negative numbers inside of the trading account. The stable 60% will give you more time, if you need to wait until one bad investment can be sold for a better price.
The safe 60% of untouched money in your account will give you stability. Otherwise, you will have to sell bad investments for a bad price, because without the 60% of the safe capital, you will go into a negative balance and pay high fees to the bank. Or you will be forced to sell your investment for a bad price. It is very important to keep the balance of the trading account inside of the positive space of numbers.
Different currencies have different interest rates. Wise women invest into currency pairs that have positive interest rates. In FOREX, the safety is good. Try to trade currency pairs that have a positive interest rate for holding a currency that you want to invest in. It will give you more safety benefits, if you need more time, before you can sell your investments. Otherwise, a negative interest rate will eat away your profit every day, before you can sell your investment.
The wish of epSos.de is to teach you to trade safely. Try to trade in different markets. Trading in one market at the same time is equal to trading all of the capital at once.
Be careful. Look at the fees of the investment. Sometimes, the change of the price in the currency market is smaller than the fees of the investment. The fees can be bigger than the potential profit. Avoid investments into stable markets, that have high fees. Wait for a better time or invest into better FOREX markets.
Trends are complicated. Trends are unpredictable like the future. Never trade against the long-therm trend. Trading against the long-term trend will lead to long-term investments, that are not profitable. Understand the trend of the month. Understand the trend of the day. Understand the trend of the week. Understand the trend of the year.
Understand the long, the medium and the short trend before making an investment !
In FOREX trading, the price trends have borders. Understand the current borders of the price. Look at the change of the price within a month. Understand the range of the price. Often, the change of the price is very small. The price can go up and down all the time. In trading, the borders of the price are more important than the price. It is very important to choose a good price at the edge of the borders of the current trend. Wait for the good time for investment.
Never trade against the long-term trend, if you want to be safe !
Very often, the currency prices will remain within stable borders. Some day, the price can change very quickly for one week and remain stable for a month. It is very difficult to predict the time of that change. It is better to predict the borders of the price. The borders of the price will help wise women to choose the best time for investing into their favorite FOREX market. Remember about the borders. Remember about the long-term trend. Remember about the fees of the investment. Remember about the negative interest rates. Remember about the cost of borrowing. Remember the price of being stuck in one investment. Calculate the possible profit within the borders. Make your investment, if the realistic profit of the investment can cover the costs.
Otherwise, just wait or find another market for investment.
Be realistic. Sell your investments, if you are profitable. The good women sell, after their investment has increased by 0.10%, by 0.15% or 0.20%. They wait a little and repeat their investment again. It is better to make a profit of 5x0.20%, than to wait for the 1% of increase. In FOREX, 50% increases are very slow, rare and unrealistic. It is better to trade in short parts, as same as it is easier to walk short distances. Wait for a good time of entry. Exit after profit. Wait again and enter. Short distances are easier to walk. Divide your goal into many parts and you will be slowly successful. Slow, but safe and successful. Slow success is much better than quick loss. Be patient and careful.
Thank you for reading. Be good. Tell good people about this professional strategy advice from epSos.de !