User:Tinylove

WELCOME
Welcome to my page at wikipedia. Please make your comments at my talk page.

Popular Forex
Popularity of Forex is growing at exponential speed. I heard Forex trading becomes quite a idea to a lot of Chinese traders. While what else can they do? The significant of drop of share A in ShangHai Exchange to 2000 broke everyone's heart.

However, at this stage of economy. Trading Forex is not less risky than ShangHai Exchange.

Risky Forex
Forex trading can be risky for two reasons.
 * In order to make a significant profit, a Forex trader easily has to get into marginal trading. In marginal training, only a small percentage of a lot is paid for by the trader's own money, while the rest is leverage. In other words, a trader makes use of borrowed capital when doing a marginal trade. The greater the leverage involved, the greater the risk to the trader.
 * Market uncertainty. Even the most experienced Forex trader cannot make perfect predictions on how the foreign exchange market will perform. The market can easily be affected at anytime by unexpected events, especially events that make the news, such as wars in elections. However, this risk is controllable.

Manage Risk
Not only Forex market, all kinds of financial markets are risky. It's true that by using 1:500, Forex marekt is risky. However, without risk management, all financial markets are risky enough. Managing forex risk is also important. What are the best way to manage risk then? A lot of forex trading beginners fail to see their capital is sufficient enough. Remember what I said earlier about forex traders who are undercapitalized? They tend to overtrade, lose and never come back to the forex market. Although there is no clear definition of overtrading, a lot of forex traders follow this rule rigorously. They will not trade a standard lot, which is 100,000 dollars unless they have 10,000 dollars capital, given a 1:100 leverage. In other words, although 1,000 dollars is what a forex broker typically requires for trade a standard lot contract, experienced forex traders will not enter such a trade unless they have 10 times of the capital. Therefore, mini lots and even micro lots can be a lot more helpful for small and middle sized forex traders to obtain an optimal capital level

Calculate exposure
One pip is worth 10 dollars. Knowing this is more than necessary.