Forex Trading Library

Don’t take larger positions until you can afford to

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Many novice forex traders succumb to the forex trading pitfalls of increasing their position size as soon as they feel more confident trading in the forex market, rather than waiting until their forex trading account can actually afford to take such larger risks.  A more experienced and prudent trader will instead build up their trading account by employing careful risk taking and money management techniques, and only then will they increase their position size to an appropriate level for the extra funds they have now accumulated in their forex account. Basically, you need to make sure at all times that the risks you are taking in the forex market are suitable for the amount of money you have deposited as margin with your forex broker.

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