Keep it simple – Too much information
on your screen can prove confusing.
Platforms – Not all trading platforms
are created equal. Choose a platform that is proven and tested
– don’t fall for an inferior trading platform
because it “looks” great.
Set daily limits and follow them –
Many traders look for the big score in one day. Trading should
not be about changing your life overnight, but it can change
your life if you create a realistic daily income and even
a daily loss limit for yourself and stop trading for the day
once it is reached. Too often, people lose out on profits
they had during the day because they get greedy. Stay focused
and be disciplined, not greedy.
Lock in your profit quickly – The
profit any trader seeks comes from the fluctuations in the
currency exchange market. These changes occur every second
– if you wait for a huge profit you can lose whatever
gains you have made in the blink of an eye. After you make
an opening trade, decide upon a small profit level and set
a limit order to close the position. Since most Forex providers
do not charge a commission, you can make as many trades as
you want until your target for the day has been reached.
Be Realistic – Do not set yourself
unrealistic targets and do not have crazy expectations. Trading,
as much as it can be scientific through technical analyses,
is not an exact science - there are other factors that are
at play. Setting unattainable targets will lead to frustration
and failure when your targets are not met.
Read – It is very important in trading
international currencies to know as much as you can about
the market. Knowing that the PPI of a country is low is not
enough, how that relates to the rest of the world is important
too. For example, Producer Prices in one country affect Consumer
Prices in another – if the unemployment rate is higher
then people buy less goods – which can lead to a lower
Trade with your head, not over it –
If you are a beginner, make sure you do not trade more than
you can afford to lose. Emotions can be detrimental to keeping
level trading head. People who cannot afford to lose the money
they are trading tend to lose sight of their strategy when
the trades are not going their way. This only leads to bigger
losses. Create a plan and follow it – no matter what.
The old adage – It is written on
every brokerage advertisement and it is true – past
performance does not guarantee future results. What happened
yesterday might not happen today even if the circumstances
are the same. Each day brings something new – do not
let your guard down and do not deviate from your plan –
even if you think it could make you more money, 9 out of 10
times you will lose.
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