Forex market is world largest market and is capable of offering high returns. Trading in forex requires good risk bearing capability. Traders sometimes do not understand their risk bearing capability and start earning negative returns .Most of the losses are result of flawed preparation. To earn high returns you have to put some extra efforts. Experts suggested currency tips can be considered for managing risk and returns in a wise manner.
For forex trader any loss is a business expense. Here are few tips which can be used to avoid loosing money while trading in different currency pairs:
1)Do prior homework
Forex market is different from all other markets. Do not have a misconception that with vague knowledge you can succeed here by earning good returns. Before beginning to trade in market firstly gain sufficient knowledge about it. Majority of learning will come from live trading and experience but it is required to get familiar with market terminologies and facts.
2)Use proper indicator
Most of the indicators present in market are unreliable and do not have proper entry points. Rely on usage of indicators which are in existence from long time and used by more number of traders.There is no perfect indicator which predicts the market completely. Also a proper indicator takes time to start giving profit.
Using proper indicator and following market trend will be of no use if you lack in wise money management skills. Always have a clear understanding of your risk bearing capability and how much capital you are ready to risk for every trade.
4)Keep good records
Keep record of your trading activities like dates, profits, losses. Maintaining a trading journal is an effective way to learn from both losses and profits. You can review this journal periodically and improve your knowledge. This will help in understanding what strategies you used and results it generated. Also you can avoid repeating same mistakes again by referring your trade records and minimize the chance of losses.
5) Avoid scalping
Initializing a lot of trade and booking profit even with small increase in price is known as scalping. Most of traders and investors believes it is a safe way of trading but they do not understand that this involves high risk because of leverage. Scalping is not professional way of trading therefore you should avoid it while trading in currency pairs.
Loss in forex can not be completely eliminated, it is a part of journey of a successful trader. But yes following above mentioned guidelines and disciplined trading practices can helps to minimize the chance of loss. You can hire some financial advisor as well to give recommendations on trading tips, mcx tips and more. This will help to trade in an efficient manner as after performing quality research work such tips are recommended.