3 Main Reasons Why You Need A Stop-Loss in Forex Trading

Like brakes on a vehicle, it is important to have safety measures in place when trading currencies. Foreign exchange markets are incredibly volatile and trading currencies is no different than swimming in a whirlpool! The irony about Forex trading is that only the big risks take you to big rewards, but risking such can, at the same time, place you in a spot where you can incur several hefty losses. Risks are necessary in Forex and devastating, all the same, this is why you have to equip your trades with stop-losses, to keep your trading account safe from the big drops.
 

A stop-loss is much like the name says helps stop losses. When you keep a stop order in place, the chances of losing money become low phenomenally. How? It's simple - the stop order automatically withdraws your position from a trade when a specific amount of loss has been incurred, or the trade is taking a turn for the worst. Keep in mind that this won't always happen. Some market changes are too quick for the stop to respond to, and these will inevitably end in a loss!
 

However, when you don't consider such rarities, a stop loss is of great help. Here's why:
 

Reasons Why You Should Apply Stop Loss in Forex Trading

1) No Emotional Effects: Once you have placed a stop order, the benefits of this go beyond simply curtailing the potential losses! Many traders have the tendency to make a last-minute change to their Forex trading strategies, and this step is very damaging on most occasions. A stop when kept, will keep you from taking any rash decisions and let the trade carry out naturally. For impulsive traders who can seldom find it in them to hold back, keeping a stop kills two birds with one stone!
 

2) Incredible Risk Management: Risks can't be dodged no matter how you try, and truth be told - they are necessary. Irrespective of how much you risk, keeping a protective measure in place help from falling into sudden traps Forex trading might throw at you.
 

3) Protection from Erratic Market Changes: You can speculate many things while Forex trading in Vietnam, but nothing can be pinned down to an accuracy of 100%. To keep yourself from becoming a prey to the erratic market movements Forex brings, a stop is necessary. Keeping this limiter in place will help ensure your capital is safe even on a bad trade!
 

When Forex trading in Vietnam, you will definitely need to keep a good few protective measures in place - and the best one is a stop order. Sign up with WesternFX today, and learn risk management from our trading veterans! We will provide you with stellar demo accounts to practice your approach on, and timely, real-time guidance in your live trades. Call us now to get started!

4 Ways to Experiment Your Forex Trading Strategies in 2019

Learning comes only with experimenting. All the information and knowledge we have on our tables today is a result of the tests carried out by people years ago. In the field of Forex trading, things are no different. You get to choose from a variety of strategies and charting tools because they have been tested by professionals who came before you. When you find that you have achieved a certain level of growth as a trader, you can go on to strategize on your own.
 

Without testing, the viability of this strategy will never be known! 

Here are 4 ways to experiment with your approach:
 

Ways to Experiment Your Forex Trading Strategies

1) Demo Test it Out: Get yourself a good demo trading platform from a reliable Forex broker, and demo your Forex trading strategy on it. This virtual platform gives you the best environment to experiment without having to fear real-time repercussions. A live trade comes with numerous risks that will weigh you down, and might even burn your account capital! On a demo account, however, there are no such outcomes to fear. Get a free Forex demo account.
 

2) Log the Details: Jot down every aspect you come across in your experiments. Information is the first step to growth while Forex trading. To cement your strategy as a wholesome one, you will have to keep refining it, and this is possible only with proper logging of data. Keep a diary or a journal and monitor the results your strategy generates across different inputs.
 

3) Don't Get Hasty: Impatience is one element that will effortlessly destroy all that you've built while Forex trading in Vietnam. The testing and experimenting process is one that demands patience in abundance. To see working results, you will have to wait patiently. Being able to strategize on your own will take you incredibly close to independence; don't waste it by getting hasty!
 

4) Trial and Error is Crucial: Mistakes are bound to happen, that's the whole point of experimenting Forex trading strategies - to find out mistakes and ensure they don't recur. Some mistakes are responsible for leading you to develop game-changing strategies!
 

Your career in Forex trading in Vietnam will be nothing less than a rollercoaster ride. The day you decide to self-strategize and be your own boss is the day markets will seem all the more volatile! Perfect your approach and never miss a win - call WesternFX today. Our experts will assist you with the best of Forex trading strategies, platforms and charting tools to ensure you are always a step closer to the top!

Top 4 Forex Trading Money Management Tips in 2019

Having a million dollars as initial investment capital doesn't mean you will leave the markets with a million more! Capital management is a crucial part of Forex trading and demands that you always be watchful of the way you invest money. The volatile nature of foreign exchange can either make or break your trade and without proper measures, losses will be the only yield. Unlike the many complex trading strategies traders brew up, the ideal approach is rather simple.
 

These 4 steps will help you manage your capital incredibly and keep taking you a step closer to success:  

 

Forex Trading Money Management Tips 2019

1) Risk No More Than 2-4%: Keep your risks at a minimal. Even the most experienced of brokers, while Forex trading in Vietnam, risk only around 4%! When you cross this threshold, maybe you might make good winnings. The problem arises when a bad trend is on the way with you having risked a huge portion of your capital. 

This bad trade will wipe your account clean and leave you in losses. Calculate your risks!
 

2) Don't Trade Hastily: Hurriedness can be the fuel that burns your trades down. Forex trading in Vietnam is a field of patience, resilience and adeptness - and you have to hone these traits to see wins big or small. Always wait for the trade to conclude and leave only if there are losses rising.
 

3) Keep a Goal and Work Towards it: Moving about aimlessly won't do you much good, but having a clear-cut goal will accelerate the rate at which you attain success. Be it a nominal goal or a grand one, always have something to work towards and give you direction. Start off with some Forex demo practice and take your strategies to live!
 

4) Don't Hold on to Losses: Let the lost money go; don't use this as a drive to overtrade. Often times, trader’s trade solely to make up for lost money and try to win it back. Doing this is incredibly counterproductive and will ultimately lead to more losses!
 

Managing your money optimally will take you a long way, farther than a huge capital will! The truth about Forex has always been simple, investing big doesn't have to reward you big; but saving big definitely does. Sign up with the esteemed broker WesternFX and perfect your approach towards Forex trading in Vietnam! Backed by our experts, you will be able to dodge the dangerous risks and take the best ones like a pro!