10 Useful Tips Forex Trader Before

10 Useful Tips Forex Trader Before

 1. Do not rush. Novice traders often open several trades, and then notice that it is not able to keep track of them. Forex can make a profit as when lifting, and the fall of the exchange rate. Successfully can earn only one currency pair. Therefore focus first on one currency pair and the rest Get to gradually.

2 . Remember the stop order . Common cause of loss - the wrong money management . To prevent huge losses sure to use stop -loss order .

3 . Trading system . Every trader has a trading system he fits specifically for themselves. Some traders prefer day trading system , others are attracted longer periods. The main thing - do not deviate from the original plan of conducting trades and pay attention to the advice of more experienced traders. Several unsuccessful transactions do not always indicate the loss of your trading strategy.

4. Profit taking. A common mistake made by novice traders - early closing profitable positions. Do not deviate from the intended trading plan. This will allow you not to lose potential profit.

5. Do not turn profitable positions in unprofitable. Closely monitor the movement of the market. Once positive values ​​will be achieved, set a stop at the entrance to the market. This will protect your investment. Then slide stop the trend to remain the position for you in the black.

6. Frequent inputs . As part of the entrance to the market is not bad, but if you use them clumsily , it does not help any tips and such trade will lead you to bankruptcy. The strategy that the trader in loss position increases its size by additional transactions , assuming that the market will return to its former state , and all orders will be closed with profit. However, if the exchange rate goes away from the previous level , the losses will be even more pronounced . So it 's better to just " buy and hold " one deal than trying to win back the money invested.

7. Preplanning . Do not go on the Forex market only because of a sharp rise or fall in prices . Plan ahead for how you will conduct the auction . Have a clear understanding of the point of entry , levels of profit-taking and when to stop and limit losses .

8. Do not lose capital . Earned money should be able to keep. Time to close a losing position and hold up to a pre -planned profitable level .

9. Momentum and trend. Novice traders often do not realize that with the emergence of a new trend growing momentum . Rejoins traders create strong momentum when the growth of the trend increases the total weight of open orders in the market. Trade when momentum indicators work in your favor. With the right approach it will push your trades in the right direction and you will reach a point of profit taking even faster than expected.

10. Not devote much time to losing positions. Noticing that the open position is unprofitable and reviews experienced traders it is unlikely to change its direction, the most appropriate solution to its closing and minimizing losses. In the currency market have the opportunity to open the mass bargains, so spend time on losing positions impractical.

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