Succumbed to the financial markets forecasting?

Yes, you can predict the price movement, and quite accurately. However, taking into account the three "but":

  • Predicting the behavior of the market can not at any time. When price movement becomes clear to you, if and only if you need to make transactions.
  • The long-term projections little sense. Already tomorrow can get out the news that make reconsider any forecast. Moreover, the mass of events can happen in a month or six months: only in the weekly economic calendar is marked publication of several macroeconomic indicators for each country. Therefore, a good trader or competent investor thinks only 1-2 steps forward. It determines the most probable direction of motion (up, down, sideways) and a possible corridor in which the price can vary depending on certain events and circumstances, and uses only the work that information.
  • To see the direction of price movement and the boundaries of the corridor, it is necessary to know the set of rules for market analysis: what to look for, and what not, what is important and what is unimportant. You can see daily forex euro dollar forecast from Forex analysts.

Is it big possibility of losses on Forex?

There are many examples in which inexperienced traders begin chasing quick profits, not respecting the elementary rules on insurance against the risks. As a result, they suffer losses and the failure of the first out of the market, and do not get pleasure from the first victories.

Therefore, while not having sufficient qualifications novice rightly advised not to get too carried away by the pursuit of a gold mine. First you need to learn to respect certain rules of money management, that is, trade is not chaotic, but in considering transactions, understand the motives of the opening of each transaction and make each of them a trading plan. And the main thing - to strictly control and limit the size of potential losses. In this case, it is really to reduce the risks to a relatively small percentage of the invested amount.

A man violates these professional principles, begins to rely more on luck and intuition, ceases to put stop-losses (automatic protective orders), it leads to problems. It may occur a series of losing trades. And sometimes 1-2 transactions, if they are open to the trader does not limit the risk (without stop-loss), it may be enough to substantially deplete the possibilities of the deposit. While a trader is not ready in time to stop, to think again and reconsider their attitude to the market, the loss of his irrational trade can grow. Such experiments failed trade without observing the rules subsequently give rise to rumors and opinions that the Forex market, you can easily lose money and it is very difficult to make a profit. Study forex trading guide for profitable trading.