There are some rules and methods to be successful in Forex market but you should interpret these rules and you should find your way. You have to be genuine to gain success.
Each trading method has its advantages, disadvantages and its own risk profiles. So when you choose one, decide according to your personality.
For example, if you know that you can sleep while the Forex positions are open in the long run that you hope will bring you profit, don’t choose a method that requires you to stay awake. If you are not such a person, the method will cause you to worry and will lead you to failure.
Selection of Broker
Broker selection is one of the most important issues. Broker selection affects all your transactions so you have to be very careful. When you integrate the list to a few brokers, compare the platforms according to the method you selected. For example, if you believe you are a short-term processor, make sure that the broker you choose offers a wide range of tools that support this method as part of the platform. Also check that your broker meets all your needs.
Decision of Method
There are two basic method: Technical analysis and basic analysis. Like many things in life, no method is perfect and a good processor knows how to take advantage of each method. However, before trading, you must decide which method will be your primary method and be consistent. If you think that basic analysis plays a greater role than trends, not focus on table analysis, but focus on preparation and news. And you don’t need to be consistent about that. Today, you can decide on the Basic Analysis tomorrow, according to the Technical Analysis. The important thing is to make informed decisions.
Management of Money
The most useful clue to money management knows how to use the leverage ratio. Most experts will warn you not to use more than 2% of your account in your account. For example, you have $ 10,000 of equity capital. In this case, you should not risk more than $ 200 in a particular trading transaction. The greater the potential of earning leverage in the Forex market, the greater the danger of devastating losses.
If you haven’t noticed so far, many simple rules of life can be applied in Forex trading and this is one of them. Anything you want to accomplish in life and forex trading requires preparation. It is vital to do your analysis on weekends when the market is closed. Read the news, watch the moves of last week and make important decisions about next week. This is an effective method for many reasons. The most important of these reasons is that you can work with the luxury of being objective during the weekend. There is no need for market pressure and quick decision making; do not rush, sit back and make reasonable decisions about when and how to trade.
If you have decided to enter the market from a certain point, wait for that point. Do not jump immediately because of anxiety, if the market does not come to the point of your own self-control and self-restraint practice. Wait patiently, time will come. If you do not come, you will not lose anything; there will always be another opportunity. Your main goal here is to try to stay as scientific and experienced as possible.
This may seem a bit silly, but it may be the only clue that distinguishes a successful processor from the failures. No matter how sophisticated investor is, no one can be objective when it comes to her own money. The best way to stay objective is to write everything. When deciding opens a position, make a table of reasons why this is good for you. This includes the technical indicators as well as the principles. Then do the same table for reasons why you shouldn’t open this position. If you decide to trade in this position, include your entry and exit points and make notes about buying and selling yourself. These notes may include your emotions, concerns and optimism about trading. When closing the process, determine whether you are too greedy and always refer to this document when trading. By doing this, you are embodying your trading at the highest level, which does not give you the habit, but the ability to perform trading according to your system, mental control and discipline.