I’m not that typical financial expert. I knew I had a thing for business and money matters but it never came into my mind that I would be drawn into forex trading. I often heard of it from friends and acquaintances but I was never really that interested until a friends testimonial moved me.
My friend explained why it is a good way to invest. It can be an additional income source or you can even make it your goldmine. I was amazed at the potential of this market and found it attractive that in a month’s time my friend has already doubled his investment That’s when I decided to try it out.
But I didn’t get into forex trading right away. What I did was to research more. I checked various blogs, commentaries and joined forums. I tried some tutorials and checked on some of the broker sites comparing their offers. I studied the common terms, tools and strategies used in foreign exchange.
I realized that as much as it offers a very attractive return, it is also coupled with a lot of risks. So I checked on some of the available strategies that I can use in order to lessen the risk. I checked in hedging and other strategies but it doesn’t reduce the risk that much. I feel that the best strategy of all is the stop loss technique.
A lot of traders find using stop loss as cowardice because if values get low you withdraw your investment. But it’s still better to stay on the safe side. It’s quite hard to earn nowadays so you really have to be careful with it.
But what really taught me about fores is the online simulation. This made me experience how it really feels to use the tools and to formulate strategies. Though it’s still a lot different in the actual market it still helped.
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