forex pros-hot tips that will help you to earn money in forex trade market.

Now if you trade the forex market you will undoubtedly be aware that forex pros it is a high risk venture. Most traders who are trading currencies end up losing their hard earned money. Unfortunately, some traders end up losing a substantial part of their net worth.

In general many traders, especially new traders are attracted to forex because they see brokers offering $200 to 1 leverage and in some cases even higher amounts. Now it is a common belief amongst new traders that they can use this leverage to generate substantial amount of wealth.

 

In reality this belief nearly always ends in tears, now to be a successful forex trader, it is imperative that you treat trading like a business. It is unlikely that you could put $50 into a business and turn it into $20,000 in a short frame of time.

 

Granted there are exceptions, but there are extremely few and far between. Now you need to apply this same theory to forex trading. One of the biggest reasons traders lose money is having an account size that is too small.

 

In reality one of the major advantages of forex is that you can borrow as much money as you like from your broker. However, it is important to remember that borrowing money to trade will increase your profits, but it will also increase your losses.

 

Now there are no universal rules to state how much you should borrow. Most new traders should start off borrowing very little, if anything. Of course, it does depend on the strategy that you are using. Suppose if you have a $10,000 trading account, most brokers would allow you to open positions to the value of at least $5,000. If you bought a USD pair this would be 50:1 leverage.

 

In reality this position size is 50 times the size of your account. It would not take much of a price movement in the wrong direction to cause a significant loss to your account. Most new traders start with a small account balance. The same principle can be applied to a $100 account trading a $ 5,000 position.

 

The smallest position allowed by most brokers is often $10,000, yet they may still allow you to open an account with $100. The brokers don’t mind, they know that 99% of the clients who do this will surely blow their account.

 

Now the point I am trying to get across is one of being realistic. Treat trading as if it is a business. Try to aim for realistic returns and think about the stock market or mutual funds. They often earn less than 10% per year on average.

 

If you can make 30% per year trading forex, that is significantly higher. Don’t expect to make $1,000 a month from your $100 account. Trust me forex pros it almost certainly will not happen. Now if you want some more hot tips to make more money from the forex trade then please visit here.