When people mention that they’re considering entering the world of Forex trading, others will tell them that it’s dangerous and they could lose all their money by making one wrong move. There’s some truth to that fear, but not if you protect yourself with smart Forex trading strategies.
Smart Forex trading
The Forex market is a volatile place, with currencies rising and falling constantly, jostling against each other on a global scale. But what people may not be aware of is that these movements can quite often be forecast.
If you know when a particular country is going to release its growth reports (and most of the time there is already an idea of how positive or negative the report will be), you can likely predict whether the market will go up or down.
There’s no such thing as a life without risk. Crossing the road, driving your car, going on holiday – All of these things come with risks. Every day we weigh up the risks and the possible returns of our actions. The same applies to trading. The difference is, trading can offer you risk protection.
Smart Forex trading with stop losses
This protection comes in the form of a stop loss. If you have one of these in place, you can 98 per cent or more of your trading fund. If you place a trade, and it doesn’t go the way you expected, a stop loss will ensure you don’t lose all your money – Our recommended stop loss means you’ll only risk 2 per cent.
In a £1,000 trade, that’s just £20. You can place another trade and make that back in minutes.
Smart Forex trading can mean not trading
Another way to trade Forex smartly is knowing when not to trade. If a market is particularly volatile and moving erratically, you should know to leave it well alone.
A smart Forex trader is a successful one
Using the right strategies, knowing which markets are moving and protecting your trades are all characteristics of smart Forex trading – But to be a successful trader, it pays to learn from one. Learn to Trade has some of the most successful traders in the UK who will show you how they trade.
If you want to learn how to become a smart Forex trader, come along to one of our free Forex workshops.