 |
| Forex |
There are many different opinions about forex trading, some of them talking about the importance of fundamental analysis, Others see it as meaningless and tell you to focus all your energy on reading technical charts.
Some experts will ask you to take advantage of the leverage you get in the forex market,
While others will tell you to stay away, the higher the leverage, the higher the risk.
Here are some tips for a forex trader. You don't have to follow every single one of these forex secrets,
But you have to take it as an indication of what kind of philosophy you have towards forex trading.
Some of them may not be suitable for all traders, but they are general tips meant to guide you on the path to success in forex.
Self-knowledge
Before you trade the forex market, it is essential to know yourself. What does this mean? There are countless ways to trade,
So before you start this journey, choose your style. However, do not choose them randomly. Set your short term and long term goals,
Determine how you intend to reach those goals, and select your trading method based on your personality.
Each trading method has its own advantages and disadvantages, and its own risk profile, so when choosing a method, choose it based on the type of person you are
on him. For example, there are traders who can leave open positions at night and go to sleep in the hope that it will bring them profits in the long run.
the long. If you are not that kind of person, it will lead to an increase in your anxiety levels which will inevitably lead to failure of
the future.
Compatible Forex Broker
Once you decide what type of forex trading suits you, you need to find a forex broker that fits your style.
Don't rush into this. This may be one of the biggest decisions you will make when it comes to forex trading.
You can be sure that the forex broker you choose will have the greatest impact on your success or failure as a forex trader.
Choose a broker as if you were choosing a car. Nobody goes to the first car dealership and buys the first car they see.
You need to read about the different brokers, the advantages and disadvantages of each one. You need to make a comprehensive comparison of the large number of brokers available.
After narrowing down your selection to a few brokers, you should compare their platforms based on the method you chose in steps.
First. If you think you are a short-term trader for example, make sure that the broker you choose offers comprehensive tools to support this method
as part of their platform. Make sure that the broker you choose meets all your needs.
Choice of methodology and application
There are two primary schools when it comes to analyzing the market and predicting future trends.
The school of technical analysis that relies on the famous phrase “the trend is your friend”.
In general the market has some kind of logic and consistency in its movements”.
If it moves in that direction today, there is no reason why it cannot move in the same direction tomorrow.
There are different types of forex charts to help you analyze the market and its trends, as well as indicators and levels.
Then there is the school of fundamental analysis that believes that what really moves the market is the news of a particular country.
This method will tell you to focus less on what was yesterday in the charts and more on what was yesterday in the news.
Like many things in life, there is no perfect way, and a good trader benefits from both.
However, before trading, you need to choose your primary methodology , and be consistent with it.
If you think fundamentals play a bigger role than trends, focus your focus and analysis on watching news, not analyzing charts
graphic.
Graphic Synchronization
Regardless of the methodology you choose, you will spend a large percentage of your time looking at the forex market charts.
As we explained, there are many different types of graphs.
 |
| Candlestick chart |
 |
| Line chart |
 |
| Heiken-Ashi chart |
 |
| Renko chart |
However, most of them simply show you the same thing with a different visual effect.
Having said that, there are some very different graphs and they should be viewed accordingly.
You should pay close attention to the time frame of the chart you are using.
If for example, you watch a weekly chart and based on your analysis it shows you a great buying opportunity,
And make sure you open a chart with a lower time frame, like daily or hourly, and make sure they tell you the same thing.
If not, sit back and wait for all your charts to sync with each other
An important rule to guide you is to use a longer time frame to analyze the trend (where the market is headed) and a shorter time frame to determine entry or exit into the market.
Forecast Calculation
So far, we have been discussing choosing an effective trading method and taking precautions before trading.
But, when and how do you know if you have made the right decisions?
you will need to calculate your losses and gains .
You should go back to your trading history and count the number of winning trades versus losing trades.
Once you do this, calculate how much all of your winning trades are traded against for your losing trades.
There are a good number of trades to analyze which are the last 20. If you are still learning and haven't actually traded yet,
You can also make this calculation.
Just go back and look at all the cases where your strategy indicated that now would be a good time to open a trade.
Then check if you have won or lost from this transaction. Do this for 20 cases and then write them down.
Capital Management
When it comes to capital management we are talking about knowing how to use the leverage offered to you.
Many experts will warn you not to use more than 2% leverage on your account.
So if you have for example 10k USD, you should not risk more than 200$ on any given trade.
It is important to understand that although gains can be made using leverage,
The risk of devastating loss in the forex market is as well.
Building confidence
By following your specific trading methods, you will not only become a more trained forex trader but also build your confidence,
It is of course the basis of success in this market.
This is obviously true when you have successful trading as a result of your trading method,
But it also applies to a trade that ultimately results in a small loss.
No matter what happens, it is important to stick to your decisions and control your emotions.
Try to stay objective when trading forex. This in turn will make you a more professional trader, which will of course lead to success
Conducting analyzes on the weekend
Anything you want to achieve in life and in forex trading requires preparation.
During the weekend, when the markets are closed, it is important to do your own analysis.
Read the news, watch last week's moves, and make important decisions about the next week.
This is a very effective method for many reasons, but the main reason is that during the weekend,
You can work comfortably. No pressure from the markets, no need to make quick decisions, take your time, relax and make clear decisions about how and when to trade.
If you decide to enter the market at a certain point, wait for that point,
If the market does not reach the entry point, adjust yourself and wait patiently, your time will come and if it does not, you have not lost anything
record everything
When deciding whether to open a trade, make an outline of your reasons for believing it is a good deal.
This includes fundamentals as well as technical indicators.
Then make the same graph listing the reasons why this trade was not opened.
Include your entry and exit points if you decide to trade and take notes on the trade.
This could include your feelings about the trade, your anxiety, even your level of optimism.
Determine if you are too greedy when closing the position, and always refer to this document when trading.
By doing this, you are ultimately evaluating your trades,
Which will quickly give you the ability, mental control, and discipline to execute trades based on your system, not your habits
Conclusion
With all the charts and numbers, forex trading is an art. Talent is important in this field, but it is not as important as practice
and discipline. The above tips will help you become a more organized trader, which will eventually lead you to become a more organized trader.
Success too. The stricter you are in adhering to these rules, the faster you will see success.
