Many novice traders who have studied the basic concepts of the Forex market and discovered their first real account, believe that now the doors to the world of big money are opened for them. However, often the situation is the exact opposite, and, faced with the first difficulties, most beginners are filled. The reason for this is the psychological unpreparedness to accept the risk of losses. Having lost his deposit, a person is disappointed and immediately refuses to continue this undertaking.
In order to subsequently become a professional trader, you first need to overcome the fear of loss of money and come to terms with the inevitability of risk. And in order not to floundering blindly in the waves of fluctuating courses, it is necessary to at least approximately imagine what the main sources of danger.
Private persons participating in the auction on Forex most often do not have sufficient amounts of funds to conclude a transaction, so they use a credit shoulder or lever. This amount of money provided by the broker on credit allows you to immediately join the auction. Here the first risk awaits the trader. Since the magnitude of this shoulder is calculated depending on the amount of the participant’s own deposit, the choice of too much lever creates the danger of losing all invested funds in the first transaction.
Before joining the game, you must carefully familiarize yourself with all the rules of the system in order to know exactly the amount of all commissions, necessary payments and other costs. This will protect the trading participant from the risk of unplanned expenses that may negate the profit made.
Due to the fact that transactions are carried out using the computer and the Internet, not one of the players is safe from losses associated with failures in the work of software and hardware. Breeds of communication, breakdown of equipment can lead to the fact that the game on Forex will not go at all according to the planned scenario, and the losses incurred will completely fall on the shoulders of the trader himself.
Another risk is the erroneous choice of the broker through which transactions will be carried out. Since the legislation regulating this type of activity is still far from perfect, this makes it possible to play the unexpected participants of the Forex market not according to the rules. In this regard, the trader may be in a situation where no one is responsible for the preservation of his capital and for the correctness of the execution of orders.