A person who is successful in the forex trading always give attention to account security from trading risk. It's not that easy to control the risk. Therefore it is necessary to understand the tips for safe playing forex properly so that losses can be reduced.

It needs to understand that there is actually no one who can guarantee profit and loss when trading, all of that returns to the factor of market conditions. The people who are experts in analyzing technically and fundamentally both, do not dare to guarantee absolutely that their analysis is accurate. However, it does not mean that the analysis in trading is useless. The purpose of creating these analyzes is to help us take steps with rational and accountable preparation. Without analysis, we will enter the market in origin. It's almost no different from guessing or even gambling.

There are some tips that can be used to play or trade in forex market safely:

  1. Choose a Trusted Broker: Because we invest in the forex market online and transact with real capital, so the first point that needs to be ensured in safe tips for playing forex is to choose a trusted broker. For your security, look for a broker whose location and regulations are clear. Look for a broker whose customer service is responsive and easy to contact, because this will make it easier for you to make transactions in the future.
  2. Understand the Meaning of Hedging: Hedging or Locking is a trading strategy to "limit" or "protect" trader funds from fluctuations in unfavorable currency exchange rates. This technique that requires quite mature calculations is widely used by experienced forex traders. Beginner traders can try it too, provided they have an adequate budget. Hedging requires the right strategy because we have to analyze when it's time to open the Hedging position.
  3. Don't Open Position When High Volatility: Start familiarizing yourself to monitor world market news, because when there is economic news to be launched, market volatility will experience drastic changes. In situations like this, you should not open a position because estimating technical price movements will be much more difficult than usual. The market is dominated by sentiments that often change quickly in a short time, so it is quite impossible to "ride" to get a convincing profit.
  4. Apply Risk Management: One key to safe tips on playing forex is understanding risk management. This is important so that if we experience a prediction error, losses can still be minimized.
    Avoid making transactions or open positions using Margin or capital above 20 %. In accordance with the principles of risk management, use Margin below 20%, so that the remainder can be used to hold losses when the currency movements are in the direction we set. This is where beginner traders usually make mistakes. Because they are too passionate when they see a large potential profit, they put a high margin in the hope of sudden wealth when closing. Keep in mind that great success will carry big risks. Trading with stable and consistent results is certainly better than getting a big profit in one day, then losing many times afterward.
  5. Learn Analysis Basics: The most important tips that people usually avoid is to learn some basics about analysis. To acquire basic knowledge about analysis is the first step towards learning analysis. A trader or investor should know the importance and basics of analysis.

Keep in mind that forex trading has a high risk. If you hope for profit, you must also be prepared for the losses. There is no success that can be achieved in one night. Forex trading is not an instant money printing machine, it requires practice and the application of safe tips to play forex consistently.

Author's Bio: 

I'm Mansi Dandekar, I am sharing an article about Tips to Trade in Forex Market Safely. Here is more information on the Forex Trading Tips and Free Currency Tips.