The FOREX market risk management is probably the most important lesson in this course.
First you must assimilate that investing in FOREX is one business like any other. Not a kind of casino where the player puts at risk their capital against the odds.
In fact, casinos, if you look at them from the point of view of the owner is a business. That is why they are there.
For example, a blackjack table generates a profit to the owner of the casino equal to 4.5% of all money played in the table, within a reasonable period of time. The owner of the casino benefit thanks to its probability advantage.
Operators who fail to accept the trading as a business, have been victims of general psychological manipulation. Through the media, movies, magazines, blogs, books, webinars, etc. They think that investing in the financial markets is to buy and win.
You may have noticed that there is a generalized guidance see “predictive” trading and investment. This prevents see trading as a business. And it is very difficult to exorcise this mental state in a started.
Another tool to shape the collective thinking are the famous economic indicators. The most lethal weapon in the financial world.
These indicators tend to convince the individual in the depths of her womb, that price will go in the direction forecast by the indicators “developed”, or macro-economic data.
If you identify with this situation, I recommend to forget it all. It uses psychological techniques and starts from scratch.
Put a chart in clean, only the price and avoid all kinds of external information over a long period of time. Until your task is consistent and already the opinions of outside influence not in your website or in your executions. Almost impossible to achieve for many. But if you put into practice all these tips, I’m sure that with much determination you can achieve it.
If you are a businessman, big or small and manage your own business, this concept will be very easy to adapt to your operations. The FOREX market risk management ensures the fair determination of the size of each order that you run, avoiding to be devoured by other specialists, or worse still, by yourself.
Market money does not disappear, simply passes from less experienced other skilful hands.
That is precisely the idea of this FOREX course, transmit the experiences gained throughout a humble career as an operator and can use these skills to preserve your capital and your sanity. That way your learning process in the management of the FOREX market risk and other concepts, will be most successful and promising.
The FOREX market risk management is only one side of the coin of capital management. The other side is earnings management, a topic that requires one greater depth to fall outside the scope of this chapter. For the moment, we will expand the FOREX market as a good introduction risk management to the management of the capital.
Purchase sale of currency is a challenging and potentially profitable opportunity for investors with experience and knowledge of the market. However, before deciding to trade the forex market, plan carefully its objectives, experience level and your appetite for risk. And, most importantly, do not invest money that is not willing to lose.
On any purchase money exchange there are certain risk factors that you will be exposed. All operation in the forex market involves risks including, only by enumerating, the possibility of change in the political or economic conditions that may substantially affect the price and liquidity of the currency.
On the other hand, the leverage of the forex market means that any market movement will have an effect proportionately equal on the funds you have deposited. This can influence in his favor or against. There is the possibility that you may suffer a significant loss of the initial margin and may have to deposit additional funds to maintain its position. If you fail to comply with a request for margin within the stipulated time, your position will be liquidated and you will be liable for the losses suffered. Investors can reduce risk factors by using certain strategies such as the order “stop loss” or limited order.
There are also risks associated with the use of software applications to operate in the market through Internet, listing title, including hardware and software failures. However, our provider’s system of purchase money Exchange uses a system of backup and emergency precautions to minimize the possibility of failure in the system. Purchase currency sale telephone is always available.