Do not prepare your place among Forex victims already. 10 tips for avoiding the same mistakes made by victims before starting Forex.
Forex market, which is preferred by investors every day with the expectation of high earnings, can be the victim of the wrong mistakes made.
Today, when we start researching on Google, we can see many forums or pages that open up in the name of “Forex Victims“. I divide this grievance into two, the victims in the first group are those who have been victimized by Forex companies that do not operate in our country or do not have intermediary certificates from authorized institutions. In the second group, people who lost their money and suffered as a result of the transaction mistakes they made…
It’s hard for people in both groups to find something to do or advice at the moment. However, if you have just started researching the forex market and have just entered the market, I have very sincere advice for you not to be among the victims.
- Do not trade from forex companies that do not have a license
The most important and first thing you should be aware of is that you do not trade in forex brokerage houses that do not have a license. Because if you examine forex victims, it will be possible to see that most of them are victims by depositing money to companies that do not have authorization certificate.
The forex brokerage houses in our country are audited by the Capital Markets Board (CMB) and an intermediary institution must have the authorization certificate from the CMB in order to operate. If you have problems with audited entities, you can legally seek your rights. However, the same rights do not apply to companies that do not have a license. There are many legally operating forex brokerage houses that are supervised by the CMB. You can see some of these companies right here on the page.
2. Don’t have expectations away from reality
You will probably get excited when you see the tempting advantages of the Forex market or you are already excited. Most of the time in Forex ads, “I invested $ 100, blah blah blah blah blah” I come across. Yeah, well, there’s no lie. In fact, with the market-specific advantages such as leverage in the forex market, it is possible to earn amounts in multiples of your deposit. The truth is, you can also lose all your money! What happened now? The color and tone of the story changed.
I’ll tell you something sincerely, even the best funds in the world cannot make you 100 times your money in hours. If your reason for entering the market is to earn up to 100 times your money, you should stay away from such realistic expectations. I will be sincere again, the market is the largest in the world and it is possible to make incredible gains. Just go with small goals to succeed. In the first place, it is wise to target reasonable returns that are not too high.
3. Don’t ignore the demo account advantage
You can read numerous articles about the Forex market or watch numerous educational videos, but you can’t learn without practice. Forex brokers provide free services under the name of demo or trial account for investors who want to learn the market. By using these services, it is possible to make transactions with virtual money just like in real life.
Trading through demo accounts gives you a lot of practice and makes it easy for you to learn the logic of the transactions and to develop new strategies. This makes it easier for you to learn without risking your capital. It’s easy to get started and open an account, we’ve made a few suggestions on forex demo account recommendations before. You can review it from the related link.
4. Don’t be a millionaire in demo accounts
Since there is no real money, traders often take more risk in demo accounts than they actually can. The truth is, that only makes you a demo account millionaire. Performing transactions that you cannot do with your real capital through demo accounts will lead to wrong strategies and this will lead to greater problems with real accounts. I have touched on this topic in my demo account psychology.
Use demo accounts as if they were real and don’t take risks that you can’t actually take.
5. Do not take high risk transactions
Most victims suffered high proportional transactions and lost the majority of their capital. Do not carry out high-risk transactions. Limit your capital to each transaction you make. Do not concentrate on similar currencies that may be affected by the same or from each other within a short period of time by taking similar positions.
Before you think about what you will gain, it is helpful to consider what you might lose.
6. Avoid taking big risks
If you don’t trust all your money in one hundred percent, it can be explained by the madness of investing in a single transaction. Taking big risks in the Forex market is equivalent to gambling. Evaluating your money in a single currency or a single position is one of the best examples of these great risks.
Avoiding such large risks may be the most logical action you can make.
7. You do not have to use high leverage, do not use
Winning up to 100 times the money is a really good example of the big risks that are really enthusiastic and tempting and also include a superscript.
Forex companies or brokers you work with can encourage you to trade with high leverage rates. It’s possible to make a $ 100,000 transaction with a $ 1,000 deposit, but that doesn’t make any sense. No sane investor should risk more than 10 percent of his capital se no matter how much he makes a profit. Many people who are Forex victims complain about leveraged transactions. However, no one will force you to take this risk, you do not have to use high leverage. Do not forget this.
8. Learn to be patient in the Forex market
Newly entering amateur investors are usually impatient to win and want to trade quickly. When they start to lose in the same way, they continue to be impatient and make different mistakes by trying to compensate their losses as soon as possible.
Although the market opens the door to earnings in the short term, you must be patient. Don’t be in a hurry to start winning, you’ll have plenty of opportunities. There’s always enough time for you to analyze. Likewise, it is in your hands to know when to stop. Again, the key point is to be able to make the most accurate operation by taking the least risk.
It is also not right to leave the market impatiently with small profits or small losses. Try to balance your risk tolerance.
9. Do the totem while watching the match
Do not try to make totems while watching the trading screen in the trader and do not expect things to turn in your favor. If you’re lucky, you’re already losing. Instead of closing your eyes and making a totem away from the platform, it is wise to end your process as soon as possible or start thinking about alternative ways.
10. Defeat your ambition, do not trade
Another mistake that will send you a gold ticket among the Forex victims is to try to trade with ambition and anger. Unfortunately, amateur investors can make such mistakes in the hope of recovering their losses at once. In such cases, it would be more appropriate to leave ambition and anger aside, to move away from irrational thoughts and to calmly make a new plan.