Most new traders lose their few accounts due to a few facts which they could have avoided. 90% of traders lose money in forex trading because they don’t understand the proper risk management. Having no money management is the main enemy of a new trader which they can improve by practising and being disciplined. Follow this fx trading strategy, and you can develop your trading skills. 1. Basic Forex Knowledge Trading in the currency market is not so simple, but it's not that much complex. Knowing how to buy or sell a currency pair is not essential forex education. You must learn organized and complete forex trading course where you will get in-depth knowledge in Forex Trading For Beginners. There are no shortcut tricks to become a successful trader. Don’t waste your time searching for it. The core components of the forex trading course are: The initial step of any forex trading course would teach you about the basic forex trading stuff like pips, swaps, spreads, leverage, volume sizing, economic news, trading software and events, central banks etc., and then teach you about currency pairs, chart, candles and much more. Next, it would teach you an fx trading strategy, without using a trading plan you won’t be successful, no matter how much you are experts in it. A successful fx trading strategy always focuses on how to analyze and minimize the risk from a trade. They would tell you where to trigger a position, where the take profit and where to put a stop loss. Finally, they would explain to you how to improve your trading skills and how much to risk, psychology and control your emotions. 2. Risk Management How good a professional trader is will be defined by how good they were in managing their risk. You stay in the market if you follow it or you blow out your trading account. Nothing can save your trading account if you don’t follow a risk management method in trading. There is nothing perfect in trading, it is all about risk and probability is everywhere. New traders often blow up their account using greater leverage with trades. They over trade without doing any consideration. The only risk the amount you can afford to lose with a trade or it would destroy your trading account. You have to follow a useful money management method if you want to survive in the trading game, there is no alternative. 3. Learn Trading Strategy Based on Basics You need to learn a simple and easy trading method which is based on the raw price action like a ‘core price action’ trading strategy. A good trading strategy always focuses on losses and risk. A solid trading plan is a set of rules to filter a trade to maximize the profit and minimize the risk. All losing traders have a common mindset that they depend on indicators rather than the price itself. An indicator might work for the person who made it but not for you as you don’t know the trading strategy behind it. Learn price action trading strategies to become a successful trader. 4. Trading Journal Having a Forex Trading Beginners journal looks like a bit of extra work, but you will regret later if you don’t keep one. If you make a mistake and you lose money, a journal will show you what your mistakes are at a glance. It will help you to improve your trading success rate. 5. Higher Time Frames You must trade on higher time frames if you want to become successful, there is no exception. Many traders have the misunderstanding that they can earn more on a lower time frame and would get more trading opportunities. But this is not the reality it is the exact opposite of this. Trading more often increases your risk, and the price action of a lower time frame is messy and easy to get fooled with. It makes the trade setups more complicated. But in the higher time frames, you will get a clearer price action, and it’s simpler to identify a trade zone. 6. Less You Trade The More You Profit Trading with smaller volumes often makes you more profitable in long-term trading. Planning a big win using higher leverage is another main reason new traders wipe out their trading accounts. You don't need to jump on every trade to be profitable. Gain Slow and steady profits in the trading race. Remain patient and control your emotions. When you win a trade or lose, its how you interact with the market with open positions. As a trader you have to protect your trading capital, making a profit is not your priority. Use demo account if you are feeling less confident at the beginning. 7. Know Your Exit Plan Using Stop Loss New traders must use stop loss, but many newcomers get so afraid of losing money and put a tight stop loss. A close stop loss won’t save your money, and instead, it will destroy your profit. Using a fixed pips stop loss is a bad idea. Follow price action and give the stop-loss room to breathe. Use, a small lot size if you are afraid of losing money. You should have your exit plan before you trigger the entry. Never move a stop loss further away once the market decides to hit it. Don’t calculate your winning and losing ratio until you complete at least 50 trades by following trading strategy.
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