- Always use a stop loss order at the time as the most effective precaution to avoid big losses.
- Before making the announcement or release order to look at the latest economic news about the forex market as the basis of your fundamental analysis. It is therefore very important that learn of news and its effects on the movement chart.
- Do not increase the order by more than 20% of your capital so that you can bear the risk of loss if the currency movements on the trading market turns against us.
- Choose a currency that has the lowest spreads, such as the Euro currency against the US dollar difference is only 2 points for each lot. This serves to optimize profits and minimize losses.
- Do not rely on charts to make decisions because every time allows to happen GAP or drastic price movement either up or down.
- You are advised to use the 15-minute time frame scale on the indicator chart setting. In general, when the market release marks the movement was beginning to look at these times.
- In addition to monitoring the currency that we tradingkan, notice the movement of other currencies. For example, if a couple that we traded EUR / USD then note the pair USD / CHF as a comparison. If both of these pairs move together we should not fight the market direction.
- You should be careful when trading on Friday due to the closing of the market. It often happens that a sudden movement or GAP.
In addition to basic tips above, some of the things below are also important to be your reference in avoiding or minimizing the loss of your trading.
Equip yourself with sufficient knowledge of trading
It is important to equip yourself as possible about the intricacies of trading and money market before you decide to get into this business. Traded currency pair in the forex trading is influenced by global events and as a trader you should ideally have a detailed knowledge of it. So it is highly advisable for you to learn as deeply as possible about the ties between the forex market with the others such as commodities, bonds, and stocks. This will help you to make the best trading decisions, especially as economic data to review the various global economic conditions released
It is also very important to identify the type of prevailing market so that you can adapt according to the trading techniques you employ to avoid or at least minimize the potential for losses in your account. The more information you absorb, the greater your chances of success in trading. Remember that individual traders have different purposes, including you. For example, a trader hedger will conduct transactions when prices are rising because their goal is to find the average price is high with large transaction value in managing their portfolios. Clearly every trader would seek to maximize profits for himself.
Always monitor your position
Monitoring the investment you have in the forex market consistently is a very important thing. These habits will help you to maintain control over your trading as well as to obtain current information on market conditions. Have consistent access to the market is the best tips to get in-depth information about the forex market. Remember that the forex market is the market with the traders who continue to be active for 24 hours a day. If you want to leave your computer take care to use the facilities pending order.
Always enter the market with a strategy
Before you make your first trade or decide to enter the market, make sure that you have thought carefully strategy're going to enforce. These tips will make you more confident at the same time it is easier to focus on market conditions or price movements. Trader beginners generally start trading without the provision of adequate information on currency pairs they trade and have a robust plan how to achieve a profit from price movements in the market.
Therefore learned well how to monitor the movement of prices on the market and try to identify the techniques of trading before risking your capital. The results of this analysis will help you to design the best trading plan includes choosing a suitable trading techniques according to the situation. Things that should be considered in connection with these strategies are:
1. The frequency of your trading.
2. How many hours a day that will be used to open the transaction.
3. The technical indicators you choose to use.
4. Signal transactions that would be used.
5. Prediction of risk and profit or risk reward ratio for every trade you make.
6. The deadline for daily trading amount of capital in order to protect your investment.
Never stop learning
To become professional traders rely on trading as the only source of living conditions is to never stop learning. This could be true given the knowledge about this trading has never been done to study because there are always new developments which should continue to be followed. In addition to adding science to the workshop or seminar that is very often held in various cities, you can also join forums to discuss with other traders are already quite experienced.
For starters, before deciding to open a real trading account you can try your trading skills on a demo account. Here you can experience the real trade on the market without any real capital. Try trading techniques that had been learned in theory in the real situation, but of course you can not do a withdrawal when winning trading. In general, the recommended study time for the novice trader is one month. After feel ready you can try real trading on a real account.
A key aspect of trading with forex is the motivation for successful traders to focus more attention to their Trading process rather than worry about the amount of gain or loss they have experienced So there is no instant formula to become a professional trader. Good luck and happy trading!