Based on a well-adjusted set of rules, you ensure yourself a better chance of success in currency trading. Here are 10 rules that a successful Forex trader should keep in mind before starting work:
- 1. Forex is not a place for gamblers
- 2. Practice on a demo account
- 3. Trade in parallel with the trend of
- 4. Study the technical analysis
- 5. Do not risk many in one transaction
- 6. Always use stop loss
- 7. Pay attention to different timeframes
- 8. Leave emotions outside the market
- 9. Be true to the original solutions of
- 10. Choose the correct time frame
1. Forex -not the placeI gamblers
If you want to gamble, go to Las Vegas or Atlantic City. If you take a spontaneous decision without examining signals, trends, fundamental and other factors, then you are a gambler. The best forex traders plan their deals and based on the best available information. Transactions, based on conjectures and instincts, form a short and frustrating trading career.
2. Practice on the
demo account. Practice practicing trading well before investing real money. Spend yourself a reasonable period of time to learn more about Forex and the specific trading program that you will use. Do not rush to put real money to risk them. The more knowledge you get, the more likely you will become successful. Practice makes it possible to hone your skills and master the software. And errors can be regarded as learning experiences.
3. Trade in parallel with the trend of
Trading against the trend requires a lot of skill and gives a lower percentage of profitable trades. It is much more profitable and safer to follow the market in the direction of its movement.
4. Study the technical analysis of
Read a good book( or two) on the basics of technical analysis and the market itself. This understanding will help you acquire new trading skills.
The most interesting books of authorship of Russian and foreign traders can be found in the section "Training" on the forex broker's website InstaForex: https: //www.instaforex.com/ru/.
5. Do not risk many in one transaction
A good value is in the range of 3% to 4% of the capital. Thus, even if the transaction is completely unprofitable, your account will not suffer a loss from which you will not be able to recover.
6. Always use the stop loss
Set the order at the same time as you enter the trade. And then, if the market moves against the transaction, the loss will be limited. A number of traders use 8% for stop loss. Everything depends on the specific time interval, the amount on the account, the confidence in the generated signals and the risk tolerance. Mark the stop loss the way you think is right in the current circumstances.
7. Pay attention to different timeframes
A period different from that on which you trade will give you a different look at the trends. If you are working on a 5-minute chart, look at the 15- and 60-minute chart to get a wider perspective. Use the best daily Forex strategies to achieve acceptable results.
8. Leave emotions outside the market
The first characteristic that could be blamed for the failure of any trader is emotion. They have no place in the trade, you must base your trades on technical and fundamental aspects, and not on what you feel.
9. Be true to the original
decisions. Any transaction must have a clearly defined entry price, profit target and stop loss. Fix profits and losses where you have calculated, until the market has turned all your plans.
10. Choose the correct time frame
Each person has a different temperament from others. It determines what time frame is best for you in trading. Not everyone can be a good speculator on a minute chart, as not everyone can position trade. Choose the time frame in which you will feel most comfortable and confident.