Most of the people are being captured by the so call best forex brokers that offer "high returns" with low investment. Forex trading is not an easy task that required complicated financial skills.
Mistakes Of The Beginning Trader
The most common mistakes that many beginner traders make is without a strategy and letting emotions rule their trading decisions. Most of the time, once the trading account is approved they dive right in and started the trading. Without a discipline when comes to online Forex trading is guaranteed to lose money.
Understanding Market Movements
A trader must be well educated in market movements in order to make rational trading decisions. This including the ability to apply technical studies from plot out entry to exit points, to take the full advantage of all orders placed to minimize risk
A trader must be well educated in market movements in order to make rational trading decisions. This including the ability to apply technical studies from plot out entry to exit points, to take the full advantage of all orders placed to minimize risk
Money Management
Money management is an integral part of any trading strategy other than knowing which currencies to trade and how to recognize entry and exit signals. Successful trader has to manage his resources and integrate money management into his trading plan to avoid further losses and maximize profits
For an example, when entering a position try to limit your risk to 1% to 3% of each trade. This means that if you are trading a standard lot of $100,000 you should limit your risk to $1,000 to $3,000. You do this with a stop loss order 100 pips (1 pip = $10) above or below your entry position.
In conclusion, forex traders must have self discipline in order to be a successful forex trader.
No comments:
Post a Comment