forex investors Forex (foreign exchange market) has been the most popular trading market for quite some time now. It is also the world’s most accessible trading market, as it has a low barrier to entry. This accessibility has allowed many people to gain benefits by trading funds on the forex trading platform. With that being said, the same accessibility is making people lose thousands of dollars due to irresponsible trading. Fortunately, Realfxtime is offering you forex advisory and fund management services that would help you gain all the benefits this trading platform has to offer. We have years of trading experience, and we use that experience to guide you to invest safely and expect huge returns. Until then, you should be aware of the four avoidable mistakes, which are the main reasons behind the failure of new forex investors.
  • Don’t Keep Trading If You Keep Losing

You should always keep an eye on two trading statistics, your risk-return ratio and your win rate. Your win rate basically tells you how many trades you have won as a percentage. For example, if you have won 70 trades out of 100, your win rate will be 70%. Every trader should strive to maintain a win rate that is above 50% in order to be called a responsible and good trader. Your risk-return ratio represents how much you win relative to how much you lose while trading. For example, if you are winning trades of $75 and losing trades of $50, your risk-return ratio would be 1.5 ($75/$50). The ratio of 1 represents that your losing and winning trades are similar. So your goal should be to maintain a risk-return ratio that is more than an ideal ratio for any trader is 1.25. You can be considered profitable if your win rate is a bit lower and the risk-return ratio is a bit higher, or vice versa. This is where we guide traders by keeping them aware of these percentages and ratios. You can avoid this mistake by simply hiring us to advise you on when and where to trade.
  • Trading Without Stop-Loss

You should have an order of stop-loss for every forex trade you make. If you don’t have one, you will suffer terrible losses every time the price moves against you. What a stop-loss order does is that it gets you out of a trade if the price goes down by the amount you specify. Stop-loss order on your trades takes a large portion of the risk out of the investment you make on forex. We at Realfxtime always advise our clients to get a stop-loss order when they are making an investment. We study the pattern and recommend a specific price to the client. This saves them from potentially huge risks in the future.
  • Risking More Than You Can Afford To Lose

You should avoid risking an amount of capital that you cannot afford to lose. Investing without any constraints or limits will ultimately result in tremendous losses. So the key part we largely focus on while establishing a risk management strategy is determining how much capital a client is willing to risk on each trade. We advise clients to keep the risk rate at less than 1% of their capital on any single trade. This means that the stop-loss order closes the trade if it results in more than a 1% trading capital loss. Another factor of risk management is controlling daily losses. Even the 1% loss per trade could result in a substantial amount of loss on your capital on a single bad day. So think carefully, develop strong strategies, and consult a forex advisor.
  • Take Multiple Trades That Are Correlated

We advise all of our clients that diversification is a good thing. It is a strategy that mainly relies on your knowledge, experience, and trade capital. However, you first need to make sense of what you are doing. If you are making multiple trades at the same time instead of just one, thinking you are spreading your chances of risk. Well, it is more likely that you are increasing it. This is due to the fact that similar trade setups in multiple forex pairs are usually correlated. This results in them moving together, which means you will probably win or lose in all those trades. We at Realfxtime are always here as your trading partners who will guide you through the safe way to conduct trading. We make sure that you avoid all these mistakes while trading so that you can have a greater chance of gaining profits.  
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