10 Basic Thing To Remember Before Starting Trading
1. Do Not Get Hurry
New Beginner traders often start several trades and then notice that they are not able to monitor them all.
You can make a profit in Forex when the exchange rate is going up and when it is dropping.
Successful gaining is only possible for one currency pair.
Therefore, first focus on one currency pair and get to the others constantly.
2. Remember The Stop Order
A frequent problem of losses is wrong money management.
To prevent large losses, you must use a stop order.
3. Trading System
Every trader has the trading system, which they adjust to their liking.
Many traders prefer a system of trading once a day, other are attracted by longer periods.
The purpose 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 the early closing of trades.
Do not step away from your forex trading plan.
This will stop you losing potential profit.
5. Do Not Turn Profitable Trades Into The Losses.
Attentively monitor the movement of the market.
As early as positive values are obtained, set the stop order at the level of entrance to the market.
This will protect your money.
Next, move to stop order after the trend so that traders become profitable for you.
6. Frequent Entrances
Frequent entries into the market are not wrong, but if you use them inaptly, you can quickly go failed.
The strategy is that the trader with the negative position value increases its size, assuming that the market return to its former condition and all positions will be closed with the profit.
However, if the exchange rate goes far away from the prior level, the losses will be large, so you had better just buy and hold.
Do not enter the market only because prices are sharply rising or falling. Plan for how you will bid.
Have the clear goal of your entry, the exchange rate for the profit taking order and the moment to stop.
8. Do Not Lose The Investments
You have to know how to save the money you gained.
Quickly close the losing positions and keep open the profitable ones.
9. Momentum And Trend
New Trader often does not realize that with the emergence of a new trend, momentum is increasing.
New Traders create a powerful impulse as they join other trades on the market when the trend is arising.
Trade when the momentum is in your favor.
It pushes 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 Profitless Trades
If you see that the opened position is loss-making, the best solution would be to close it and move for another, thus minimizing your losses.
The currency market is full of bargains, so there is no use wasting time on profitless trades.