1. Accept the possibility of losing your money as an
inevitable fact. Every beginner trader should be aware that no one is safe from
losses in the currency market. The basic rule of online currency trading is to
keep the profit above the losses.
2. Bid only with a carefully thought up out plan. Before you
start trading, you should determine how much of your own money you are willing
to risk and what profit you expect. This will be your balance of risk and
profit. Successful traders never enter trades without a clear goal.
3. Do not be afraid of the foreign exchange market. Many
novice traders are afraid of uncertainty and risks of the foreign exchange
market. Those who can overcome this are rewarded with a substantial increase in
investments.
4. Take responsibility for your decisions. Successful
traders will never disclaim personal responsibility. It is you who enter the
market and it is you who assume all responsibility for the transactions,
profitable or unprofitable.
5. Do not let greed take over. When bidding begins
successfully, traders often forget about the previously set goals, hoping for
the same successful continuation. However, the market is very volatile and
trends may quickly end. Once the target price is reached, immediately withdraw
the profit or raise the stop-price to avoid losses.
6. Effect of news on the trades. The increase in trading
volume caused by a much-publicized event leads to the movement of prices, which
is sufficient to ensure that traders use to their advantage short and rapid
changes on the market. Inexperienced traders often aim for one trading
transaction per day, which would make considerable profit.
7. Do not have illusions. If an open position is getting
worse, do not stay on the market in the hope of the trend turning in the
direction that is favorable for you. Immediately leave the market.
8. Remove emotions. The cause of losses often lies in
excessive emotionality. Turn off emotions during transactions. Stick to your
plan and do not forget to set stop loss orders.
9. Trend is your friend. Trade along the direction of the
trend and your profits will grow.
Last recommendations before starting:
1. Do not hurry. Beginner traders often start several
trades, and then notice that they are not able to monitor them all. You can
make profit in Forex when the exchange rate is going up and when it is falling.
Successful earning is only possible for one currency pair. Therefore, first
focus on one currency pair and get to the others gradually.
2. Remember the stop order. A frequent cause of losses is
wrong money management. To prevent huge losses, you must use a stop order.
3. Trading system. Every trader has a trading system, which
they adjust to their liking. Some traders prefer a system of trading once a
day, other are attracted by longer periods. The idea is stick to the original
plan of trading. Several unsuccessful trades may not always indicate your
system is unprofitable.
4. Take you profit using orders. A common mistake of
beginners is early closing of trades. Do not step away from your online forex
trading plan. This will prevent you losing potential profit.
5. Do not turn profitable trades into losses. Attentively
monitor the movement of the market. As soon as positive values are achieved,
set the stop order at the level of entrance to the market. This will protect
your money. Next, move the stop order after the trend so that trades become profitable
for you.
6. Frequent entrances. Frequent entries into the market are
not bad, but if you use them inaptly, you can quickly go bankrupt. The strategy
is that the trader with a negative position value increases its size, assuming
that the market will return to its former condition and all positions will be
closed with a profit. However, if the exchange rate goes far away from the
previous level, the losses will be huge, so you had better just buy and hold.
7. Pre-planning. Do not enter the market only because prices
are sharply rising or falling. Plan ahead for how you will bid. Have a clear
goal of your entry, the exchange rate for profit taking order and the moment to
stop.
8. Do not lose the investments. You should know how to save
the money you earned. Quickly close the losing positions and keep open the
profitable ones.
9. Momentum and trend. Beginner traders often do not realize
that with the emergence of a new trend,
momentum is growing. New traders create a strong impulse as they join
other trades on the market when the trend is growing. Trade when the momentum
is in your favor. It will push your trades in the right direction and you will
reach the point of profit taking even faster than you expected.
10. Do not devote too much time to unprofitable trades. If
you see that the opened position is loss-making, the best solution would be to
close it and move on to another, thus minimizing your losses. The currency
market is full of bargains, so there is no use wasting time on unprofitable
trades.
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