Trading in the Currency Market without Losing Money

All foreign exchange merchants, and I mean all merchants lose cash on trades. 90 percent of merchants lose money, mostly due to shortage of planning and coaching and having poor cash management rules. Two. Trading currency exchange isn't for the jobless, those on low incomes, who can't afford to pay their electricity bill or afford to eat. You need to have at least $5,000 of trading capital (in a mini-account) that you are able to afford to lose.

Wait till you are profitable on a demo account. At least demo trade for two months. If you are unable to hold out for two months, cut your hands off. Concentrate on one major currency pair. It is getting far too difficult to keep tabs on more than one currency pair when you first start trading. Stick with one of the majors as the spreads are the best and they are the most liquid. You may be a winner at currency trading, but as in all other sides of life, it'll take tough work, dedication, a little luck, lots of common sense, and a selection of good judgment.