The forex market with more than $ 5 billion traded daily, millions of Trader in the world from beginner to professional and released throughout the trading session. And with that huge number, we hear 99% Trader losing, so most traders are "burning money" of his? While it is not clear how many percent of that percentage is lost, it is quite clear that not many people achieve sustainable returns in this market. The following 10 tips are likely to be instrumental in helping traders manage. Better long-term capital and fewer losses.
- Do homework - find out before you "burn money"
Do not just find out that forex is an engaging market that thinks it does not need to learn too much. Learning about forex is a process, and that is the key to any successful trader's market. While most traders learn from real trading experience, the real advice is to learn from all sources and learn everything in the market. You can learn from books, from online courses of reputable websites, learn from experts, from articles, analysis, anything that can be read and learned. You can also learn about macroeconomic knowledge, geopolitics, economic data and anything that can affect the currencies traded in the market, especially the pairs you choose to trade. Translate. Next, "doing the exercises" is enough to fully absorb the knowledge and apply it to the transaction. Understanding how to apply this knowledge to the transaction process will help you flexibly adapt to changing market conditions, major political regulations and events. Part of this "homework" is to develop your own trading plan - a systematic way of assessing and determining your investment, risk tolerance and profitability goals. Want to achieve under certain conditions. With this careful preparation, your "money burn" rate will decrease significantly, or even if you lose, you know why the loss or where you were wrong.
- Spend time finding a reputable broker
The forex industry does not have as much data as other markets, so it is very difficult to operate safely in the market without the support of a reputable broker. Due to concerns about the safety of deposits and withdrawals, forex traders usually only open accounts with brokers under the management of reputable institutions such as NFA, CFTC, FCA, CySEC.
In addition, the trader also needs to learn about the services and pricing policies that the broker provides to ensure the level of relevance, transparency and ease of your transaction. You do not want to be in the wrong situation that has lost money right where it is! ) (You can refer to the article 5 ways to choose broker part 1 here, and part 2 here).
- Use a demo account.
Most trading platforms allow you to select demo accounts to trade. Accounts will help trader deal with optional virtual capital. The biggest benefit is that everyone knows that it helps newcomers adapt to the market and manipulate the transaction platform without losing anything. In addition, this account will help you test a variety of transaction methods until you gradually find a method suitable for you. However, once you have mastered and determined the method, you should not stay with demo accounts for too long, as trading psychology is practiced primarily when you use your real money.
- Keep the charts neat and easy to see
Once we open up a new trading account, most are greedy to install or add a lot of tools to help predict and analyze prices (because psychology wants to eat, more than nothing, more than excess short). But for forex trading, know how much is enough and right with your trading method. Although some indicators may be suitable for the forex market, in order for it to really work, you must know how to use and combine in a minimalist and effective way. Using a variety of indicators of the same type as indicators of fluctuations or oscillators can cause redundancy and sometimes give false signals.
- Protect your trading account
While we know that people often focus on making money in the forex market, it is important to learn to avoid losing money first. Proper capital management techniques are part of a successful transaction. Many well-known traders all agree that a trader can enter orders at any price and make money - important is how he or she leaves the order.
To gain that ability, a trader needs to know how to accept losses and move on. Do not ever forget to use stop loss (trailing stop to ensure the current profit and stop loss normally to avoid further losses). Traders can also set a maximum loss of one day, and close all orders when the total loss reaches a specified level. Reducing losses is as important as increasing profits. Therefore, sometimes the success of the trader must first come from not burning the account already.
AUTHOR Jasmine Tran