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Foreign exchange trading in the ignored ten risks


  The foreign forexdiscountbrokers market forex discount brokers different from other financial derivatives markets biggest feature is strong volatility forexrebatesbrokers high leverage higher leverage can bring higher returns, but also often accompanied by huge risks Although there are a variety of technical means to control a variety of potential risks, but there are still some risks are often ignored by investors 1 The most important thing to remember is that when making a trade, quality is far more important than quantity, i.e., careful and prudent to make every choice and every trade. 2. On the contrary, if a trader lacks patience and insists on forexbonusrebate, he or she cashback forex be exposed to huge risks. When encountering such undesirable trading moments, the wisest choice for a trader is to take a break from trading, relax, study the market, chat with other traders and re-enter the market when the opportunity is ripe. Perhaps the biggest risk is that the account faces losses account losses will give traders encounter huge financial pressure and make traders confidence greatly reduced Therefore, the development of a risk control system can help traders minimize the loss of funds 4, complacency in foreign exchange trading, remember not to be complacent overconfidence will often lead to the failure of the transaction the most effective way is to develop a trading strategy, and then 5, market risk The foreign exchange market operates 24 hours a day and there is no limit on the rate of increase or decrease, when the fluctuations are intense in a day may go through the usual months to reach the range of movement foreign exchange movements are affected by many factors, no one can exactly determine the trend of the exchange rate when holding a position, any unexpected fluctuations in the exchange rate may lead to large losses or even complete loss of funds 6, leverage Too high Every investment contains risk, but because foreign exchange margin trading uses a high capital lever model, magnifying the amount of loss especially in the case of using high leverage, even if there is a small change contrary to your position, will bring huge losses, including even all the opening funds So, the funds used for this speculative foreign exchange trading must be risky funds; that is, these funds, even if 7, fear of psychology in foreign exchange trading, sustained losses will make the traders confidence will be hit, fear of trading, and even question their trading strategy 8, network risk foreign exchange margin trading is mainly through the Internet for trading due to the characteristics of the Internet itself, so there may be unable to connect to the broker In this case, the customer may not be able to place an order, or to the loss of existing positions, which will lead to unpredictable losses of the broker is exempt from liability, and even the brokers trading system crash they will not be held responsible 9, lack of motivation If the traders account for a long period of time does not appear to be profitable or loss, then the trader will often lose motivation 10 The trader must look at the long term, control his emotions, and manage his risk 
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