Forex investment

Posted by Mords1944 on October 3rd, 2019

Are you interested in investing in Forex as a possible hobby that generates money? You can certainly bring cash, but unlike many hobbies, there is a significant risk in this hobby. But if you have the guts and maybe just a little luck, investing in Forex can generate some cash. There are several simple rules for investing in Forex that you need to follow. While I am certainly not a professional and the following is not a complete guide to investing, these are some excellent tips that every new investor should keep in mind.

RULE # 1 - NEVER RISK EVER MORE THAN YOU CAN LOSE
Yes, it's the same rule you would use in a casino. Never bet on something you can never afford to lose. You don't want to lose your home because of this hobby, right? Don't go into Forex by investing with both feet. Test the water a little with your toe first. Reserve the amount you had in mind, but don't spend it yet! Use some of your investment money to get an idea of ​​it. Once you've started to feel comfortable with the ups and downs, try a little more. Just don't let this become a problem and manage your life where having a bad week makes you lose your rent. That's what you want to avoid no matter what.

Rule 2 - Let an upward trend continue and emerge from losses caused by recessions

This tip is the basic stock trading 101. In short, don't be too nervous and sell your shares early in an uptrend. You never know when it will fall again. Similarly, sometimes you just have to reduce your losses in a downward trend and finish before losing it completely. Try to break the idea that you will get rich super fast. While certainly possible, you should hear the saying "the trend is your friend." In short, let your earnings follow the course and reduce your losses early. The n ° 3 rule introduces an idea that helps with both problems.

Rule # 3: Use the stops to your advantage

A stop order is simple and an order that allows you to close your position when the currency falls at a certain price. This is ideal for reducing your losses. Here is an imaginary scenario. For example, suppose you buy a currency of 1.9500. Of course, you want the price to rise, and let's say it goes up to 1,900. As it goes up, it does not create an arrest warrant and the next time it is verified, it collapses to 1.8700. If he had created an arrest warrant for e.g. 1.9400, he could have drastically reduced his forex expo.

However, stopping is not just for limiting your losses! They are also very useful for overcoming an upward trend. Let's use the previous example. You buy some currency for 1.9500 and then go up to 1.9800. Now you decide how close you want to stop and how much you are willing to risk. If you are happy to leave around 1.9800, you can set the stop to 1.97XX. If you want to risk a little downside to have the possibility of a higher rise, you can set the arrest warrant to 1.96XX, in any case it goes ahead of its first 1.9500. As you can see, arrest warrants are extremely helpful in reducing your losses before they get out of control, as well as to make sure you can get out when the upward trend starts to fail.

Another option you have is to find like-minded people through the Internet or local interest groups. Find people who share Forex interests and meet. Talk about it; Share your experiences as you try to learn from theirs. You can be lucky and learn a lot from an experienced Forex veteran or Forex professional. When in doubt, you can always pay a professional to take care of this, but now wouldn’t be a fantastic hobby, right?

No amount of reading about investing in Forex exceeds experiencing it. Just make sure you follow at least these 3 rules and don't spread too much in the market. Hopefully this will be one of your lucrative hobbies making money!

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Mords1944

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Mords1944
Joined: September 4th, 2018
Articles Posted: 896

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