How to speculate in foreign exchange will not blow up

A novice asked, I heard that speculation in foreign exchange 10 have 9 losses, and will soon burst, forex forextradingbrokerwebsite site this really the case? It depends on how you trade, if the forextradingwebsiteonline is properly controlled, the risk of foreign exchange trading is cashback forex so high the safest practice is not to trade if not trading there is little need to talk about blowing up, as long as the transaction will have the risk of blowing up, even if your position is very low, encounter a major black swan event, you may also blow up for example, January 15, 2015, the Swiss franc event, the Swiss franc instantly soared thousands of points, if Here we ignore these black swan events, only to discuss the normal circumstances of foreign exchange trading is difficult to earn money, which must be recognized, but in no way means that speculation in foreign exchange is very easy to blow up, this point is necessary to state that in addition, foreign exchange trading is never gambling, of course, you think so at first, and also each transaction as a gamble, then it is gambling at the same time foreign exchange trading It is also not a get rich quick, overnight industry, although you may have seen others have achieved many people have hardly considered the burst of things, they most often asked several questions: $ 500 account a month can double? Is it possible to make 50% in a week? For such questions, I can only answer perfunctorily: anything is possible how to not blow up? First of all to analyze the reasons that lead to blowout blowout is nothing more than these reasons: 1. excessive trading, such as holding a large number of transactions at the same time; 2. poor risk management, trading set a large stop loss 3. not set a stop loss at all, dead carry loss trading; 4. poor risk-reward ratio, earning very little time, a lot of losses; 5. too little money, thinking that more money will not blow out 6. like trading in the news time. Want to make a quick buck here is not an article-by-article analysis, we have a large and general summary of how to avoid blowing up first regardless of your trading experience, trading level, in addition to not trading in the news hours, the other four points can be attributed to inappropriate risk management Some newcomers say, I only a few hundred dollars account, the money is too small to talk about what risk management In fact, it is because the money is small, it is more important to emphasize risk management then what is the right Risk management? Here is a suggestion for newcomers: each time to bear 1% of the risk as long as you comply with this principle, the probability of your position will be greatly reduced by 1%, which is the first principle of survival no matter how much your account, each time only 1% of the risk if your account is $100, each time only $1 of risk, $500 is $5 when you improve the level, the account more abundant funds before gradually increasing the risk Even if you only have $500, if you only take 1% risk each time, even after 70 consecutive losses, you still have almost half of the money left if you have $10,000, each time you take 20% risk, only to continue to lose five times, you will lose more than half of the money Therefore, it is not correct to think that it is easy to blow up a position with little money for traders, you may not make much money, but As long as you adhere to the 1% principle, you will have the capital to continue to trade and learn more forex learning - forex introductory basics, how to speculate in foreign exchange, please visit: forex basics learning section