Most vital advices: when you trade in forex

If you are beginner or intermediate level forex trader you must take my advice very seriously and carefully. Even you can write my suggestions and put on your forex trading table. It is important, believe me. Many people falsely impress you that you can make incredible money from forex with little efforts and small investment. Do not trust their words. This world is not so easy place that somehow you can make so much money so easily. Then there will not be any poor in this world in the first place.

But I am not discouraging you from trading in forex. I lost a lot of money in forex and now I know how to protect myself. I have found main killer of forex trading is leverage. Leverage is very attractive if you are very experienced trader. Many forex brokers allow you to control a trading position up to $500 just for investing $1. This is called leverage of 500: 1.

It will not harm forex broker but it will benefit them huge at the expensive of your money! Because due to little adverse market movement your all investment can be wiped out in just one trade within matter of minutes with such leverage! But due to larger position size your broker will get more spread money so they will encourage you to open big sized position!

I do not want to see that you will be wiped out so easily and swiftly with huge stress for losing your hard earn money. That is why I compel to write this article for your great help.

So what level of leverage should you take? If you are beginner I would not suggest you taking leverage more than 10. If you are intermediate you can take maximum 20. Do not be greedy. You do not need huge money. All you need to have a good living trading in forex. Too much greediness can cause disastrous.

Article Source: www.finance.progressive-muslim.org

 

 

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