10 Tips You Must Know To Succeed With Forex Trading

februarie 16, 2018 | Autor: | Posted in Visual Graphic Arts

Forex trading is easy but not simple to master. Here are the top 10 tips to succeed at Forex trading

  1. Pick a destination and stick to it. Choose the profit target you want to achieve on the basis of your risk tolerance level and amount of time you have available. Then draw a plan of how you are going to get there. Spend time defining the plan but once the plan is set do not change it. Go into pure execution mode
  2. Practice Forex trading. Open you or more demo accounts where you can trade under real market conditions but with fake money. This way you are not risking losing any money (great since you're starting) but are getting plenty of Forex trading experience before you risk any of your hard-earned money
  3. Assess the market before placing a trade. Fundamental traders prefer to look at economic factors such as unemployment news or interest rates. Technical traders prefer to look at Fibonacci retracements or Gann fans. Either way, learn the basic concepts of both tools and make sure you have a full, up-to-date view of the market before placing a trade.
  4. Learn how much you can afford to lose. Figure out what an appropriate risk-reward ratio is for you before trading Forex. Also, check that what is left after the max loss that day is enough to allowing you to trade the next day
  5. Make full use of the risk management tools available. Most Forex trading brokers will allow you to place target profit, stop loss and trailing stop loss orders. These are crucial to ensure you adhere to the risk limits you set yourself in your plan and will always be working for you even when you are not in front of your computer watching the market
  6. Keep your emotions in check. If you have a losing trade do not try to go in the market all in to try make it back. "Revenge trading" is never sweet.
  7. Know what kind of trader you are. This follows from the previous point. If you know you are particularly prone to emotions, then double-check your analysis with a friend before executing a trade
  8. Educate yourself as much as possible. In Forex trading (like in many other areas of business) your profitability is directly correlated with your amount of knowledge. The more you educate yourself (both about the theory but education here also includes practice and experience), the more you successful and profitable you will be. It's as simple as that.
  9. Slow and steady. All successful traders (no exception) have lost money. But as long they stay in the market and maintain a positive edge they will always come out as winners.
  10. Although consistency is important, always be open-minded to exploring a new avenue. If your current Forex trading trading plan is not working, look for a new or an improved one. If your personal situation changes, consider if your Forex trading plan should change too.

Source by Alberto Pau

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