2 Ways You Can Potentially Lose Your Live Forex Trading Account
James Woolley
October 12, 2009
A lot of forex traders have a love-hate relationship with their forex broker. In fact nearly everyone will have at least a few issues with their broker, however despite all this it's still absolutely vital that you stay on the right side of your broker. Failure to do so may result in you losing your trading account and having to go elsewhere.
So how are you most likely to get on the wrong side of your forex broker?
Well it's natural to assume that they all hate winning traders. However although that may be true to a certain extent, in the majority of cases you won't encounter any problems if you are a highly successful trader. Indeed if you become very successful you may find that the broker you trade with will copy your positions and enter them themselves in order to benefit from your winning trades.
What they do not approve of, however, is the use of commercial forex robots on their trading platform. This is particularly the case when lots of other forex traders are opening and closing trades using the exact same robot. It won't of course be an issue if it's proving to be unprofitable, but if it turns out to a success they may not be so accommodating. Indeed in a worst case scenario they may even close your account as a result.
This is something that a lot of the sellers of these automated forex robots will forget to mention on their sales page. It's a big enough challenge trying to find a robot that is able to consistently make money, without having to worry about whether or not your broker will continue to allow you to use your chosen robot.
The second way you can potentially jeopardize your live trading account is by taking lots of short-term trading positions. In other words placing multiple trades that may only last a few minutes. This is a problem you will have to deal with if you have aspirations to become a highly successful day trader.
Unless you are trading the markets through a high quality broker that provides you with direct access, you will usually find that a lot of brokers are totally against this style of trading because they simply do not have enough time to hedge your positions. So you will often find that they will only allow you to continue placing these short-term trades for so long before they start making things difficult for you. For example they may start increasing the spreads, ensuring that the platform goes down at crucial times, or they may take the drastic action of closing your account.
So the overall message I want to get across is that you really should try and stay away from forex robots and try not to scalp the markets because if you do you may well find that your account will be closed.
Click here for a full list of forex brokers and to discover lots of free tips and strategies relating to currency trading including the exact 4 hour trading strategy that James Woolley uses to trade the markets.
So how are you most likely to get on the wrong side of your forex broker?
Well it's natural to assume that they all hate winning traders. However although that may be true to a certain extent, in the majority of cases you won't encounter any problems if you are a highly successful trader. Indeed if you become very successful you may find that the broker you trade with will copy your positions and enter them themselves in order to benefit from your winning trades.
What they do not approve of, however, is the use of commercial forex robots on their trading platform. This is particularly the case when lots of other forex traders are opening and closing trades using the exact same robot. It won't of course be an issue if it's proving to be unprofitable, but if it turns out to a success they may not be so accommodating. Indeed in a worst case scenario they may even close your account as a result.
This is something that a lot of the sellers of these automated forex robots will forget to mention on their sales page. It's a big enough challenge trying to find a robot that is able to consistently make money, without having to worry about whether or not your broker will continue to allow you to use your chosen robot.
The second way you can potentially jeopardize your live trading account is by taking lots of short-term trading positions. In other words placing multiple trades that may only last a few minutes. This is a problem you will have to deal with if you have aspirations to become a highly successful day trader.
Unless you are trading the markets through a high quality broker that provides you with direct access, you will usually find that a lot of brokers are totally against this style of trading because they simply do not have enough time to hedge your positions. So you will often find that they will only allow you to continue placing these short-term trades for so long before they start making things difficult for you. For example they may start increasing the spreads, ensuring that the platform goes down at crucial times, or they may take the drastic action of closing your account.
So the overall message I want to get across is that you really should try and stay away from forex robots and try not to scalp the markets because if you do you may well find that your account will be closed.
Click here for a full list of forex brokers and to discover lots of free tips and strategies relating to currency trading including the exact 4 hour trading strategy that James Woolley uses to trade the markets.
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