Forex trading is more than a regular business; it is partially an art, partially a science, but never just pure luck. Everyone can make himself a successful Forex trader, especially with wise guidance at the beginning of this long, but rewarding path.
The first thing to remember – you won’t become a rich person overnight. However, a few bumps on the road, the hard and consistent work along with a cold heart and clear mind will eventually bring the results you’ve expected. The following Forex trading tips will help overcome the first difficulties on your way to success and fortune.
No trading strategy is 100% effective
As a newcomer to the harsh world of Forex trading, you will come across a lot of brokers and dealers offering you the strategies with a “100% chance of winning” or “no-failure strategies”. Do not believe that some strategy will be a surefire guarantee of winning every deal. However, believe the broker who offers multiple effective trading strategies and tips to help you develop the low but steady income within the first 2-3 months of your career as a Forex trader. For example, read daily recommendations and tips posted by AMarkets to make your first steady steps in the Forex trading business. Such an approach is more effectual in the end than believing in easy and quick money.
Do not let the first wins end as regular losses
The first successfully closed deal is sweeter than any candy because it proves that you eventually did something right after a few failures. Never let this first victory affect the following decisions. Never risk too much and protect your trailing stops by any means. To decrease the loss rate consider trading more than one lot at the same time. Scaling techniques and strategies can come handy if you prefer less risk and more stable income.
No time to be sensitive or emotional
Emotions are great but you should better leave them for family and friends because Forex trading is all about logic. You will have no time or space to dwell on your impulses or emotions. An impulse to “wait a little longer” or “trade all or nothing” will definitely won’t make your bank account positive for a long time. Only logically focused traders are aware of how to cut the risks to the minimum and avoid bankruptcy. If you want to understand how the greatest Forex traders think and act to avoid emotional bursts, check the Analytics section posted by AMarkets experts.
Risking more than 2% of your investment per trade is wrong
Most beginners ignore the basic rule – never risk more than you can lose. The cases when “green” traders lose two or even five years’ worth piggy banks in a few trades are more common than you think. Avoid this scenario by setting up a 2% stop-loss for every trading deal. This means that even 10 trades in a row will cut your account by no less than 20%. Learn how to trade on stop-loss traders from the best experts in the business – on AMarkets.
Fundamental or technical analysis? Choose both!
Even experienced traders may have hot discussions about what analysis turns to be more effectual – fundamental or technical. However, the truth is that both types can be quite useful. Fundamentals are good for exploring the broad trends for weeks or even years. The technical approach is also good if you need to see the quick dynamics of the market’s fluctuations. In addition, it gives a chance to think about the specific level of entry and exit for your orders. To learn more about technical/fundamental analysis, and how to apply both approaches practically, go and check the corresponding articles on AMarkets.
Scale In and Lose? Not necessarily
Before placing the trade, learn to differentiate scaling in strategies. Never trade on a losing position – that is a sort of Forex trading dogma. But… sometimes adding to a losing position can be the best way to trade in a difficult situation. For instance, if you intend to purchase a 1,000 lot, consider dividing the position into 100 clips. In such way, you will receive a better average price for the whole lot. That is the foundation of all scaling-in strategies.
Never stop learning
If you check the story shared by one of AMarkets experts, you will understand that even the brightest minds need exercising. Always try new strategies with low-risk investing. Read, discuss, ask and test every piece of your knowledge that you may get.
Surely, Forex trading is more about practicing than talking and discussing. Just like any other business. Nevertheless, without the steady knowledge and powerful guidance, you won’t be able to take the baby steps in the right direction. The Research & Education center by AMarkets will assist with getting and testing this knowledge reasonably.