Trading in Foreign Exchange market is a very risky process. Mainly, the reason people lose at the beginning is that they do not have enough knowledge, have not ever trained and studied the market, do not know how it works. Of course in this case it is easy to suffer losses.
You should have your trading plan before starting trading. Never follow someone’s experience, because somebody’s strategy will not necessarily work for you. You had better follow your own market views, risk tolerance level and make your own trading plan. Your trading lan should include the following essential aspects:
• Your objective in trading – it should be your target or an expected result (in terms of profit) from your trading.
• Use of trading strategies that have been proved to work in your trading experience.
• Trading strategies, use of analysis based on which you will decide to enter the market.
• Trading analytics, based on which you enter the market (open a trading position).
• The formation of own risk management system - you have to know in advance how much the risk may reach for any of your position and what proportion of your deposit you are willing to take under the risk.
