FX (also known as foreign exchange, forex, or foreign currency) trading consists of trading one type of currency for another.
But it is more than just this. It is a market like no other with trading volumes that exceed USD$3.5 trillion on a daily basis! it is easily the world's largest financial market. Currency trading volume vastly exceeds the turnover volume on major exchanges such as the NYSE and NASDAQ! FX trading operates "over the counter" on a 24 hour 5.5 days a week through a global network of market participants that includes banks, commercial companies and brokers. The immense size and liquidity of the markets drive down the cost of trading, a compelling advantage to you, the individual trader.
Forex Tips and Tricks
Any attempt to trade without analysis and studying the market is equal to a game. Games are fun except when you lose real money...
Often people great success in the Demo Account but Fail in a real account. You must be serious in the demo and the Real. Here are some tips that we collect for you. Make sure you evaluate yourself after reading this article.
Here are our tips from successful and seasoned traders who have undergone professional Trader (trading for Living).
1. Create a trading plan and description well.
Criteria, you need to know when:
* Open position
* How many digits Stop Loss & Take Profit is ‘ideal’
* Have a financial management strategy (money management). This is related to how long you are trading in a month, how do you account resistance level of risk loss, when the attraction of funds, when adding funds, and allocation of income to savings, investment and consumption.
2. Make the trend as your best friend (Trend Follower).
* Open position
* How many digits Stop Loss & Take Profit is ‘ideal’
* Have a financial management strategy (money management). This is related to how long you are trading in a month, how do you account resistance level of risk loss, when the attraction of funds, when adding funds, and allocation of income to savings, investment and consumption.
2. Make the trend as your best friend (Trend Follower).
Do not fight the market trend (though not including mandatory rules). If prices are rising, you can install position Buy and vice versa when prices are down then you can install Sell position. Most people often take the opposite (counter trend) and often wrong – though there’s also often true:).
3. Keep well & carefully your capital.
Do not allow your capital to be $ 0.0. If You loss, try to keep 10 to 50% of your capital, so that when the time comes to add funds or inject, Dollar that deposited not too big. Imagine if you had to add a large fund due to loss inForex trading.
If in two or three trades already spent 20 – 40% of the capital due to loss, stop for a moment. Hold yourself to open new positions. Do not obey yourself to “get even” or “want return oninvestment ”. Try to calm your mind and your head. Arrange your trading system back in the Demo Account. Spend time 3 days – 1 week to try trading system in the Demo Account.
If already established, please go back to Real Account.
4. Knowing when to dispose of “poison”.
The term poison is a Buy or Sell position that has opened that has a floating (floating position / not closed) a negative or minus position fairly large. Say if Buy GBP / USD you have -150 points in the 2-hour period, is it still worth hanging on. Or if the position of AUD / USD is minus -100 within 20 minutes, if still loved-baby??!
Ah, would’t the price back again? Well, if the price don’t back and forth, we become “poisoned” himself, both mind and body. We can be physically ill to think of a position that has not closed that reached 200 points for example. Just remember, for themoney now rather difficult times well. If It’s not productive within 2 – 3 hours, well to be amputated / Cut Loss. Cut, remove the already swollen & unproductive. What else would make the position of stay, more than one day with more expected profit well and also get a premium interest rate, put obligatory Stop Loss. Our advice, if you want to continue the next day, attach Stop Loss 200 points from the point of your open positions. Use Trailing Stop only if the facilities provided by the trading platform.
Stop Loss Plan you as early as possible. These days, the price movement to the Euro & Pound reaches 200 to 400 points per day. Determine ideal Initial Capital & Stop Loss you with a situation like that.
5. No emotion. If you’ve reached your daily or monthly targets, get out of the market. Do not be greedy.
Avoid the fear. Now it is linked with tips no.6, be informed. If you already know how far prices can move with the technical & fundamental indicators, do not look for the disease. Do not hesitate to put Stop Loss or Trailing Stop to limit losses.
6. Be smart & informed.
Smart here is no basis why should buy and why must Sell. That means you must research the market as a Fundamental and Technical. Open daily news or sites. Adjust date & time to time in which you reside.