Hi everyone,
I found this on ForexNewsNow.com and it’s quite interesting.
Here are 10 ways to limit your risk of loss when trading foreign currencies with an online forex broker:
Trade during periods of high liquidity. You want to get your trades in as soon as the markets, indicators or signals tell you to; and that means you want a lot of potential liquidity providers ready and waiting to fill your order. Because of this, it’s important to trade during “peak” trading hours, which vary depending on what you’re trading and where you’re located. Be sure to research his information before you get started.
Trade with a regulated foreign exchange broker. Foreign exchange brokers that are regulated by a reputable financial authority must abide by a series of criteria when they are filling their clients’ buy and sell orders and this means they are less likely overall to engage in unethical practices. Some forex brokers – market makers – may in some cases take the opposite end of a trade you initiate meaning your gain is their loss and vice versa. This, of course, may lead to a conflict of interest which could lead the broker to be less likely to fill your orders when you’re riding a breakout in the right direction, for example. In that case, it’s all the more important to have an impartial authority looking over the broker’s shoulder in order to make sure they are playing by the rules.
(…)
The rest could be useful for beginners,
Cheers,
Darren.