Best practices for merchants to lose their money

Did you know that one of the traders is losing money on the financial markets when it trades?

Traders continue to risk and invest their money in spite of the inherent uncertainty of scraping statistics and trading results. Hopes of Return

Experienced traders and stakeholders have put in place a number of methods in which merchants lose money. From this information we have chosen the most important ways that traders can not help to avoid the same mistakes. Most merchants who suffered losses from their trading experience began trading, without having received any formal training from a specialist. It only has basic information on the market, some invest and start to hope for trading, ignorance that luck will be on their side. Instead of learning to trade, these investors begin trading to learn the functioning of the markets. Turning events in reverse order leads to an insurmountable loss, which makes it difficult for a trader to recover lost money at any time.

Risk Management

Understanding trade risk level and investment risk category is the first step to avoid losing money in trading. The risk assessment of investment opportunities on the market allows the trader to determine the leverage it faces in investing and whether leverage is worth leveraging. Without risk assessment, the trader may place a high risk premium portfolio and lose leverage among the other losses.

Lack of money management skills, traders hold their stake for too long, or let them down too fast. Therefore, despite the fact that they generate profits from a transaction, the trader will lose money

Transaction Costs

Like any other investment, traders must enter their operating costs and make a loss statement. The trader may lose money even though a positive return was generated during the trading period based on the costs incurred during the period. Transaction costs deducted include taxes, commissions and utility bills, including trading time and other trade-related activities.

Tools for Trade

Markets are time-sensitive and data-intensive platforms. Traders who have the right data at the right time are more likely to win than others in the same market. Due to the lack of tools for effective data analysis and communication, some traders make ex-post commercial decisions. For example, if a slow Internet connection can shorten the trader's efficiency, the trader makes decisions by using the delayed spreadsheets. Finally, traders lose their money because they do not have a commercial strategy, or if they have one, deviate from the plan. For example, a diversified portfolio-free trader is likely to lose money due to lack of risk sharing. Consequently, trading without a futures or without a profit will keep the trader's position in the future at a risk of losing money in the hope of a "miracle" at any time.

So how can I get the money? the basic information on how traders lose money, the most important thing is to understand the best way to avoid these threats, learning how to become a successful investor

Source by sbobet

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