There are many different views about Forex trading. Some investors rely on basic analysis, others thinks that are useless and you need to focus all your energy on reading technical tables. Some experts say that you should take advantage of the leverage offered to you in the Forex market, while others say that the higher the leverage’s mean is the greater the risk.
Below you will find a few recommendations that are of universal validity for forex processors. When all of these recommendations are put together, one single crucial principle emerges: impartiality.
You don’t need to follow each of these rules literally, but you can consider it as an indicator of the kind of philosophy you are heading for Forex trading. Some of them may not be right for all processors, but keep in mind that they are general clues and they lead you towards success.
- Self-Recognition: This advice can be applied to all the efforts you have made throughout your life, especially to those at large risks. In the Forex market, you need to know yourself before you buy and sell a pip. Well what does it mean? There are countless ways to trade, so choose your method before you go on this journey. But don’t make any random choices. Determine your long and short term goals, determine how you want to achieve these goals and decide on your trading method based on your personality.
- Compatible Forex Broker Selection: After determining the appropriate type of Forex Trading, you need to find the appropriate Forex company. Don’t rush about it. Because when the issue is Forex, this decision can be one of the biggest decisions you can make. You can be sure that the Forex broker will have a major impact on your success or failure as a processor. Choose your Forex broker like choosing a car. Nobody buys the first car in the automotive gallery. Read about the advantages and disadvantages of each and every one of the various brokers. You need to make extensive comparisons of brokers with a lot of numbers.
- Method Selection and Implementation: As mentioned above, there are two main styles of thinking when it comes to market analysis and predicting future trends. First of all, technical analysis is a predominant way of thinking and is based on the slogan, ‘The trend is your friend.’The basic assumption is that there is some kind of stability and logic in the movements of the market. If it is moved in this direction today, there is no reason for it not to move in the same direction tomorrow. In addition to indicators and levels, there are many types of tables to help you analyze the market and its trends. The second way of thinking is about the basic analysis. This way of thinking adopts that what constitutes the market movement is actually the news of the country. This method tells you to focus less on what are on the tables of yesterday and to focus more on what’s on the news.
- Table synchronization: Regardless of the method you chose in step 3, you will spend most of your time in the Forex market to look at the tables. As we have explained before, there are many different types of tables. But most of them transfer the same thing with different visual effects.
There are a few basic points to consider when using tables. First, you should pay much attention to the timeframe of your user table. For example, if you are looking at a weekly chart and are based on your analysis, it may be a good purchase opportunity. Open a table of a lower time period, such as a daily or hourly table, and make sure that it shows you the same opportunity. If not, wait for all your tables to sync with each other. An important point to guide you is to use a longer time frame for direction analysis, or to use a shorter time frame to decide whether to enter or leave the market.
- Expectation Calculation: We have mention about selecting an effective trading method and taking measures before starting trading. So how and when will you make sure you make the right decision? For this, you should occasionally calculate your earnings and losses. You should go back to your trading history and see how many trades you have in exchange for your profitable trades. When you do this, calculate the amount of your profitable trades and the amount of your trades that caused lose. You should look at is your last 10 trades. However, if you are still in the learning stage and you have not really traded, you can do this calculation. Go back and look at all the stages that your system shows as a good time to open your position. Then look at whether you’re getting a profit or a loss. Do this for the 10 steps you have specified and make a note of them. Doing this will be a good indication of whether you are on the right track or not.
- Money management: Money management seems very obvious but is not as simple as it looks. It depends entirely on your philosophy and view of the money you trade. It’s a good idea to see the money you use in Forex as holiday money. You’re using this money for trading, and you’re likely to be out of your hands tomorrow, but at least it will give you something: an important and useful experience. However, this comparison is only valid for this area, don’t be fooled: Forex trading is not a holiday. Thinking about the subject in this way will allow you to psychologically accept the small losses that will lead you to become a better processor.
- Building trust: By following established trading methods, you don’t just become a better trained processor. At the same time, you achieve another element that is one of the basic requirements of success in this market; build trust. This is good when you perform a successful transaction as a result of your trading method. But it is also suitable for a trade which leads to a small loss. Regardless of your decisions is important to stay connected. Do not let emotions get in your way, be objective and affordable. This will turn you into a professional processor and lead you to success.