What are the most important points in Forex trading? KeyTrending.com Forex experts give advice for successful tradingDwain Ross 24 / January / 22 Visitors: 109
In this article, KeyTrending Forex experts will introduce you to the basic concepts of investing/trading in the financial markets.
The most important points in Forex trading, as well as in CFD trading or any other financial products can be roughly divided into 3 categories:
Item 1: knowledge
Knowledge consists, for example, of graphical information, indicators, or information about order books in which a trader can see how other market participants are positioning. On this basis, the trader can make his trading decisions. But also market information, such as interest rate decisions or the US labor market, relying on this knowledge. Therefore, almost all successful traders KeyTrending broker use tools (some of which are paid) to always be aware of the most important information.
However, all trading decisions are primarily based on the current trading price. Hence, the most important information is always the price at which the market the trader wants to trade is currently being traded on the stock exchange. That is why by far the most important things your KeyTrending forex broker should provide you with are:
1. Absolutely relevant and immediate prices
2. Reliable and accurate execution of your orders
Item 2: mechanics
Mechanics refers to your access to the markets and the methods or strategies you use to make trading decisions and to open or close positions. Therefore, you always need to improve your mechanics before you can be successful as a trader. In intraday trading, a simple click of the mouse can result in the loss of several thousand euros, and a small mistake can negate the profit of an entire trading day.
Once you have a good strategy and learn how to use it, trading is like riding a bike. Positions are opened and closed almost automatically. The ability to quickly buy or sell at a price gives them a market advantage over their competitors. It's like trading anywhere else. First arrived - first served.
Item 3: discipline
The third and by far the most important point in Forex trading is discipline. If you want to be successful in trading, regardless of degree, discipline is by far the most important role. Successful trading with KeyTrending forex broker requires 100% discipline and with every trade you make. Day after day, week after week.
Success in trading with KeyTrending.com, or another broker is directly related to the discipline of the trader.
Successfully read these 5 trading rules and put them into practice every day.
Read the rules more often or regularly, if necessary, and, if necessary, take them as a prayer reminding you what to do when trading with KeyTrending broker.
Rule # 1 - Stay in your comfort zone
Be yourself and don't try to be someone else. Each trader has his own zone in which he feels comfortable. For example, if you are comfortable with a position size of 1 to 5 lots per trade, stick with that. Do not try to trade with KeyTrending broker with a position size of 10 or 20 lots per trade, even if your account balance allows it. Unfortunately, just because you know traders who trade these position sizes doesn't mean you can do it too. Each trader has different psychological skills. As a result, not all traders can handle such large positions. If you act outside of your comfort zone, you most likely will not achieve the same success as if you were acting within your comfort zone. The reason for this is that fear or uncertainty arises that prevents you from trading with KeyTrending.com and complying with your rules.
The KeyTrending Forex Experts remind: Recognize and accept your comfort zone in terms of position sizing and stick to it. Always be yourself!
Rule # 2 - Tomorrow is a new day
Tomorrow is a new day. Never allow yourself to lose more money than you can afford. There is nothing worse than wanting to trade but not being able, because your account balance is too low and your broker will not let you continue trading until you add capital to your account.
Set a daily limit on which you can lose a maximum of one day. For example, if this limit is € 500, your daily loss should never exceed € 500. If you lose $ 500 or more in a day, shut down your computer and stop working.
Tomorrow is a new trading day and there will be enough opportunities again.
KeyTrending Forex Experts: Rule # 3 - Right to Trade
Earn the right to trade. Too many traders believe that they can trade 5 or 10 lots per trade just because they have $ 25,000 in their account. This misconception could hardly be further from reality. If you have failed to successfully trade 1 lot, what makes you believe that you will succeed with 10 lots?
Rule # 4 - Get Rid of the Losers
Get rid of the losers. You don't lose just because you have a losing trade in your portfolio. But you will definitely be on the losing side if you don’t give up on this losing trade as soon as you realize it as such. It is always surprising how reliable your own instinct is as a market indicator. If you feel like the deal might be bad, then it probably isn't. It's time to close the position.
Rule # 5 - First Loss
The first loss is the best. When you understand that the trade was unsuccessful, it is better to close it right away in order to avoid large losses. As soon as thoughts arise like “I will close the position as soon as it becomes profitable” or you hope that the position is still reversed and turns into profit, you know for sure that the trade was bad and it is time to close the position.