We prepared a list of tips to avoid you from placing among Forex victims. Here are 10 tips to avoid making the same mistakes made by victims before starting Forex.
The Forex market, which is preferred more and more by investors with the expectation of high earnings, can be victimized by the consequences of wrong mistakes. Today, when we try to search on Google, we come across many forums or pages opened in the name of “Forex Victims”. We divide this victimization into two; the victims in the first group are those who have been victimized by Forex companies that do not have a brokerage certificate from authorized institutions. Those in the second group are those who lost their money and suffered as a result of their trading strategies and mistakes.
For people in both groups to find anything to do or advice to give right now. However, if you have just started researching the forex market and have just entered the market, we sincerely advise you not to be among the victims.
1. Do not trade from forex companies that do not have a license
- 1. Do not trade from forex companies that do not have a license
- 2. Don’t have unrealistic expectations
- 3. Don’t ignore the demo account advantage
- 4. Don’t be a millionaire on demo accounts
- 5. Do not make high-risk transactions
- 6. Avoid taking big risks
- 7. You don’t have to use high leverage, don’t use it
- 8. Learn to be patient in the Forex market
- 9. Don’t be influenced by victims by making a totel
- 10. Do not be overwhelmed by your ambition
The most important and first thing you should pay attention to is that you do not trade in forex brokerage firms that do not have a license document. Because if you examine forex victims, you will be able to see that most of them are victims by depositing money to companies that do not have a license.
If you have problems with the audited organizations, it is possible to seek your legal rights with the regulated brokers. However, the same rights are not available for companies that do not have a license certificate. Many forex brokerage firms are controlled by the CMB and operate legally. You can see some of these companies right here on the page.
2. Don’t have unrealistic expectations
You will probably be excited or already excited when you see the attractive advantages of the Forex market. In Forex advertisements, we often come across expressions such as “I invested $100, I won a lot of money”. Yes, there is no lie. Indeed, with market-specific advantages such as leverage in the forex market, it is possible to earn multiples of the money you deposit. The truth is that it is also possible for you to lose your entire deposit! What happened now? The colour and tone of the story have also changed.
Let me tell you something candidly, even the best funds in the world cannot make you 100 times your money within hours. If your reason for entering the market is to earn up to 100 times your money, it is better to stay away from such unrealistic expectations. Again, I will be sincere, the market I am talking about is the largest in the world and it is possible to make incredible profits. Just move forward with small goals to be successful. It would be wiser to aim for reasonable returns that are not too high in the first place.
3. Don’t ignore the demo account advantage
You can read countless articles on the Forex market or watch countless training videos, but you cannot learn without practice. Forex brokers provide free services under the name of demo or trial account for traders who want to learn the market. By making use of these services, it is also possible for you to transact with virtual money just like in real life.
Trading through demo accounts gives you practice and makes it easier for you to learn the logic of trading, allowing you to acquire new strategies. This makes it easier for you to learn without risking your capital. Getting started and opening an account is easy, we have already made a few suggestions on forex demo account recommendations. You can check it from the relevant link.
4. Don’t be a millionaire on demo accounts
Since there is no real money, traders often take more risks on demo accounts than they can take. The truth is, that only makes you a demo account millionaire. Making transactions that you cannot do with your real capital, through demo accounts, will cause you to apply wrong strategies and this will cause bigger problems in real accounts. I talked about this in my article on demo account psychology.
Use demo accounts as if they were real and don’t take risks you can’t take.
5. Do not make high-risk transactions
Most of the victims have lost the vast majority of their capital by making highly proportionate transactions. Do not make high-risk transactions. Limit your capital to each transaction you make. Do not concentrate on the same or similar currencies that may be affected by each other in a short time frame by taking similar positions.
Before you think about what you will gain, it will help you consider what you can lose.
6. Avoid taking big risks
Investing all of your money in a single transaction if you don’t trust it 100 per cent is just plain insane. Taking big risks in the Forex market is equivalent to gambling. Evaluating your money in a single currency transaction or with a single position will be one of the best examples of these big risks.
Avoiding similar big risks may be the most logical move you can make.
7. You don’t have to use high leverage, don’t use it
Earning up to 100 times the money is really exciting and tempting, and it’s another good example of the big risks included in the next item.
Forex companies or the brokers you work with may encourage you to trade with high leverage. It’s possible to trade $100,000 with a $1,000 collateral, but that doesn’t make any sense. No sane investor would and should not risk more than 10 per cent of his capital, even if it is profitable. Many Forex victims complain about leveraged trading. However, no one forces 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
Amateur investors who are new to the market are usually impatient to win and want to trade quickly. Likewise, when they start to lose, they continue to be impatient and make different mistakes by trying to make up for their losses as soon as possible.
Although the market opens the door to gain in the short term, you must be patient. Do not rush to start earning, many opportunities will come your way. There is always enough time to analyze. Likewise, it is up to you to know how to stop when the time comes. Again, the key point is to take the least risk and take the right action.
It is also not right to leave the market impatiently with small profits or small losses. Try to find the balance according to your risk tolerance.
9. Don’t be influenced by victims by making a totel
While watching the trading screen, do not try to make a totem and wait for things to turn in your favour. If your job is left to chance, it means you have already started to lose. Instead of closing your eyes and making a totem and leaving the platform, it would be wiser to end your transaction as soon as possible or start thinking about alternative ways.
10. Do not be overwhelmed by your ambition
Another mistake that will send you a golden ticket among Forex victims is trying to trade with greed and anger. Unfortunately, amateur investors can make such mistakes in the hope of getting their losses back in one go. In such cases, it would be better to set aside greed and anger, move away from irrational thoughts and calmly make a new plan.
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