Forex market is a complex market. Actually it is difficult, even for savvy traders. Personally, I was a victim many times before I found and applied my effective strategy.

What should a new trader in mind?
Always get more information on how you can avoid mistakes that may be unfavorable to your account.

First you must know how to manage money to use in trade. So, what money management all about? It is a set of rules which if used properly can help you manage your trading account and a decrease in potential losses of your trading decisions.

Let’s take a look at these rules:
1) Do not risk more than 10% of the balance of your account per trade. For example, if your $ 2000 balance in your account, do not risk more than $ 200 per trade. It is only 20 pips in a regular account! Be vigilant, because Forex is a volatile market.

2) Adjust return to risk ration of 2:1
So, for example, if you risk 30 pips you to take cash position should be at lest 60 pips. Use this rule and you will see that you will be entitled only to a three trades, and yet you will not lose money. Even the savviest traders are not always right in their trading. But they know that they need not always be right just to be gained in Forex.

3) Always use stop loss orders. Make sure your transactions are protected. Do not wait until the market will protect you if you take a wrong position. Forex market can be very strict to a dealer who fails to apply stop losses.

The money management rules may seem to be easy to learn but when your emotions overwhelm you, money management rules will be difficult to use. The trader must have control emotions in making decisions and trade under the rules mechanically.

Now let’s take a good look at the next regular fall in forex market. Have you heard anything about basic announcement? Newbie traders who do not understand the basics to ensure that trade during major announcements. This market is moving rapidly during these announcements and unexpected movements happen. A professional trader uses his technical plans for a basic announcement and trading before the announcement with a tight stop loss limits. However, this is a powerful way of trade, because he can be caught wrong and stop losses can not be completed due to loss of liquidity during this rapid market movements. Be careful when choosing everything! So, I hope this article that outlined the most popular pitfalls you may encounter will help you trading and volatile forex trading market in the long term.

Due to hard times in the economies of many countries Forex has become a very popular way of earning money. Those looking for productive strategy might be interested in managed forex accounts. But it is important that you read about forex trading scam before dealing with forex trading.

It is a must to read unbiased reviews to answer a question “is forex a scam?” Before you invest money in trading. This is important, remember that we live in the world where knowledge is rapidly improving the quality of our lives.

That’s why if you are well armed with the information in your subject you can be sure that you at least find their way out of a bad situation. So, make sure this site on a regular basis or track – the least time consuming way of doing things – subscribe to the RSS. In such a simple way you have your hand on the pulse of the latest information updates here. Blogs can be useful, you just need to understand how to use blogging for the currency market.