Tips for Forex Traders: How to Trade Profitably?Dwain Ross 10 / January / 20 Visitors: 63
Tips for Forex Traders: How to Trade Profitably?
For sure, those who trade in the Forex market already know the tips below. But I, trading on Forex for more than one year, periodically re-read them myself. To be honest, they are printed and hang in front of my eyes (in short form) so that during the bidding it is more difficult to "step." These, it seems, simple, obvious, elementary rules have repeatedly saved me from mistakes!
1. You do not hurry. Aspiring traders often open several trades, and then notice that they are unable to monitor everyone. On Forex you can make a profit, both when the exchange rate rises and falls. You can only earn successfully on one pair of currencies. So focus first on one currency pair, and learn the rest gradually.
2. You remember the stop order. The frequent cause of losses is incorrect money management. To prevent huge losses, be sure to use a stop order.
3. Trading system. Each trader has his own trading system, which he adapts specifically for himself. Some traders prefer the day trading system, while others attract longer periods. The main thing is not to deviate from the planned bidding plan. Several failed trades may not always indicate the loss of your system.
4. Fixation of profit. A common mistake of emerging traders is the earlier closure of profitable positions. Do not deviate from the planned trading plan. This will allow you not to lose potential profits.
5. Do not turn profitable positions into unprofitable positions. Watch the market movement closely. Once positive values are reached, set the stop at the entry level. This will protect the funds. Next move stop by trend to keep positions profitable for you.
6. Frequent entrances. There is nothing wrong with frequent entrances to the market, but if they are not used well, you can quickly fail. The essence of the strategy is that the trader at the negative value of the position increases its size, assuming that the market will return to the previous state and all positions will be closed with profit. However, if the exchange rate goes far from the previous level, the losses will be huge, so it is better simply to "buy and hold."
7. Preliminary planning. Do not enter the forex market just because of the sharp rise or fall in price. Plan in advance how you will conduct the bidding. Have a clear idea of the entry point, the quotations of the order, which records the profit and the moment when you should stop.
8. Not to lose the capital. The money earned needs to be saved. Close quickly loss-making positions and keep profitable ones.
9. Momentum and trend. Beginner traders often do not even suspect that with the emergence of a new trend the moment grows. The new traders create strong momentum as the trend grows to join the overall mass in the market. Trade when the moment is in your favor. It will push your bidding in the right direction and you will reach the point of profit fixing even faster than anticipated.
10. Do not devote much time to loss positions. Having noticed that the open position is unprofitable, the most correct decision will be to close it and move to a new one, thus minimizing losses. There are many profitable deals in the foreign exchange market, so it is impractical to spend time on loss-making positions.
11. The trend is your friend. Trade in the trend direction and your profit will grow.