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The same holds true with the stock market the commodities market, and the money market Any investment that entices of great gain poses a certain level of risk As a forex trader you want to minimize your chance of risk Observe the following Best Practices:o Stay informed Peruse the current events magazines and political journals Know how the global political and social landscapes have been shiftingo Brush up on economics A college refresher course can keep you out of the red Journals by economists like John Maynard Keyes, Kenneth Galbraith and Walter Williams can help you guesstimate potential forex uptrendso Read periodicals like the Asian Wall Street Journal and Business Investors Dailyo Fire up a practice demo account and get a feel of the game before jumping into the marketo Befriend a broker you trusto Cultivate friendships with other traders into active tradingo Understand historical trends and their impact on the chartso Take a short course on forex trading to get your skills up to speed These cost under $200 and can help you avoid $20000 losseso Research forex on the Internet Forums provide great sources of informationo And finally, invest money that you can actually afford to lose if worse comes to worse Then you won't be out of the game completelyo Cut your losses early When a portfolio is losing week after week, shed it It may take months to recover which means money tied unproductivelyo Invest in multiple currency pairs, such as EU-GBP, GBP-USD, CHF-USD This frees the trader from monumental losses incurred when all eggs are thrown into one currency pairo Don't hang to a position for extended periods This ins't the stock market where equities tend to go up in the long term Sell positions when minor up movements are made and reinvest in other currency pairsGood luck and happy trading! *** An expert at persuasion influence and negotiation, Joseph R Plazo conducts leadership executive coaching and helps people find jobs in the Philippines Article Source: http://EzineArticlescom/?expert=Joseph_Plazo ?>