4Xlounge Trader’s Risk Warning and Disclaimer
Trading foreign currencies is a challenging and potentially profitable opportunity for educated and experienced investors. However, before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose.
There is considerable exposure to risk in any off-exchange foreign exchange transaction, including, but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair.
You must use a safe level of leverage in your account. If you over-leverage your account, you will lose your equity (i.e. complete loss of your balance). Please ask questions before you use live funds. Do everything you can to safe guard your account.
A Few Simple Rules for Safe Trading
- Never risk more than 2% of your account per trade. Typical example; if your equity is $1000.00, your stop should not expose your account to more than $20 in losses. You need to adjust your lot size to reduce your risk. You will thank us later, I promise.
- Never trade around news releases. News trading provides extreme volatility and creates a high risk environment for trading. News trading adds unwanted risk. let’s face it, we have enough risk as it is, we do not need to add more risk to our trading.
- Never trade without a stop. You never know what might happen. Your power could go out, your phone might die, you might have an emergency that you cannot avoid or anything else unexpected. Trading stops provide minimal protection in your absence. Do NOT trade without a stop.
- If you ever have a doubt or a question, do NOT place your trade. Ask us for support and get your answers before you place your trade. A missed trade is not a big deal. There is always another trade. The forex market is not going anywhere. Take a deep breath, put down the mouse and take the time to get your answers.
- Demo trading is NOT for idiots. Demo trading is critical to your success. We do not recommend trading live funds until your demo trading shows a “consistent pattern of winning trades”. That does not mean 4 winning trades in a row. A “consistent pattern of winning trades” means 70 winning trades out of 100 total trades.
The Legal Stuff – From The Suits
More over, the leveraged nature of forex trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as well as for you. The possibility exists that you could sustain a total loss of initial margin funds and be required to deposit additional funds to maintain your position. If you fail to meet any margin requirement, your position may be liquidated and you will be responsible for any resulting losses. To manage exposure, employ risk-reducing strategies such as ‘stop-loss’ or ‘limit’ orders.
There are risks associated with utilizing an Internet-based trading system including, but not limited to, the failure of hardware, software, and Internet connection. 4Xlounge.com is not responsible for communication failures or delays when trading via the Internet. 4Xlounge.com employs back up systems and contingency plans to minimize the possibility of system failure, and trading via telephone is always available.
Any opinions, news, research, analyses, prices, or other information contained on this website are provided as general market commentary, and do not constitute investment advice. 4Xlounge.com is not liable for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. 4Xlounge.com has taken reasonable measures to ensure the accuracy of the information on the website. The content on this website is subject to change at any time without notice.
To Sum Up:
Trading the spot forex market is very risky, please manage your risk carefully and DO NOT overleverage your funds.