Do not think of quick richness
Some novice traders sometimes make the mistake of looking at Forex as an easy way to get rich quick. Think about the risks and efforts to achieve this goal.It is likely that you will not be able to make large profits from your account balance, as an attempt to make huge profits, in the long term, because the transaction may ultimately go against your interest and lead to heavy losses.
Do not take your decisions at random
You should know where you intend to open and close your deal before entering any market, based on a specific system you follow. Setting this up early will help you focus on your system and eliminate frequency.n You can also reduce losses by adopting stop loss orders. It is important to know that markets may not always fit in with the orders you place.
You must use stop loss orders
Some traders hold long-term losing positions believing or hoping that markets will change in their favor. They also tend to break out of the winning trades very quickly to keep their instant bet, eliminating their chances of making bigger gains. Although it may seem tempting for you to have this thinking mechanism, you must be patient to enter into deals that seem to have opportunities, and follow them with discipline to end this transaction quickly if it is not up to you, or continue it if you are confident It is good to choose them. When you open a position, you can place a stop loss order - the deal is automatically closed when the price reaches the stop loss price.
Do not act passionately in your business
Maintaining calm and mental balance is critical when trading, so that you stay focused on relevant events. Always remember that you do not take what happens in the markets personally. We understand that words are easy and difficult to do, especially in the midst of that moment when a decision must be made in a fraction of a second. Try not to deal with the trading passionately and remember everything you learned in this regard.
Discipline helps achieve maximum benefits
If you are always disciplined and adhering to an experienced trading plan, you will probably gain more than those who are trading in an inconsistent manner. Continuous frequency can ruin your profits and may eliminate the benefits of having a trading plan originally. You should plan your trading according to your plans instead of choosing your deals randomly and emotionally. The latter is no more than an arbitrary move coupled with a hope for profit rather than an ability to understand the market through a consistent and solid trading system You should maintain consistency with your trading system and follow it with a good analysis of your operations in order to get a better idea of how to evaluate your mistakes.
You have to manage your funds
The main difference between amateur and expert traders is the approach to managing funds. Expert traders put a fixed risk ratio on capital and do not change that ratio. A fixed risk ratio on total capital in each transaction is useful in the period of repeated losses because it reduces its impact. Amateur traders often overlook this and increase their stakes when their losses begin to increase. This type of scenario inevitably leads to loss after loss.
You should know a lot about your trading markets
Some beginner Forex traders start trading without knowing enough about the pair or currency pairs they have chosen, or how currencies are subject to the impact of global events. You should know a lot about how markets affect each other and how their components are interlinked - stocks, bonds, commodities and currencies.
This knowledge will help you make more informed trading decisions when different financial figures are released. It is also important to determine the prevailing market pattern to allow you to adjust your strategy accordingly and thus avoid entering into losing positions.
The more you know, the better your chances of trading successfully. Some market participants have intentions that are different from your intentions. For example, hedgehogs will sell in emerging markets because they often look for a good rate on large orders to manage the risk of their portfolios. This is an antithesis to individual traders who seek maximum profits for each transaction.
Monitor your deals
It is important that you monitor any exposure to risk that you may face in the Forex market. A careful monitoring of how transactions work will help you maintain control and monitor market movements as they occur. You should stay informed of the latest changes in market movements. It is a good way to expand the level of knowledge and understanding of the Forex market and maintain this level. You need to be aware that forex trading takes place 24 hours a day, making use of pending orders crucial if you want to stay away from computers.
Develop a trading strategy
You should spend enough time to decide your strategy before starting your first deal. This will make it easier for you to focus on market events. Some beginner Forex traders start trading without knowing enough about the pair or currency pairs they have chosen, how currencies are impacted by global events, and how to take advantage of price movements. It is important to pay attention to price movement in the market and try to identify patterns of trading before risking your capital, with your comments that help you to develop a plan and a pattern of trading.
Your trading strategy should consider the following:
- Planned trading pace
- Planning your trading time
- Technical indicators you plan to use
- Sell / buy signals you plan to use
Your incentive to trade is a very important aspect. Successful traders do not think of the benefit of trading because thinking about the winner or potential future losses will overshadow your decisions at the moment, while expert traders focus on the same trading process instead of worrying about how much they might win or lose in the deal.