These are just several but quite important things to have in mind when entering the currency market. Make sure you check the list for being on a good way to start trading profitably.
Don’t be impatient
Impatience is a bad thing in trading. On the one hand, it pushes you to want to win quickly and, therefore, to take significant risks (see leverage). On the other hand, you want to be in the market constantly. You tell yourself that it is time wasted not to be in position. A trader should always follow his trading plan and take a position only if his strategy gives him a buy/sell signal. You cannot capture all market movements; some traders will take trend movements and others counter-trend. It can also happen that you miss an opportunity to take a position on a trade that would have been successful in the end. It’s okay, don’t get frustrated. There are plenty of opportunities on the financial markets….
Find a good broker
Dealer is a brokerage that links you to the market. In today’s competitive market, it’s easy to fall for the wrong brokerage service. But if you stick to some evergreen rules, there won’t be harmful surprises to your money. Before entering the boat of currency trading, search for the opinions of other brokers. For instance, t1markets review will give you an excellent overview of this particular dealer. Furthermore, always check if the dealer is regulated and complies with your trading plan and preferences regarding minimum deposits, leverage allowed, trading instruments allowed etc.
Don’t look to use risky strategies straight away.
At the risk of shattering your dreams, the magical formula does not exist. There are thousands of good strategies, but making it successful requires you to be rigorous with yourself and respect your trading plan and money management rules. If you don’t agree to lose on certain trades, you can’t win on Forex!
Most importantly, many beginner traders are looking for the magic formula to win every time in Forex. Martingale strategy is usually implemented in betting. You will notice it in gambling rooms as one of the most used strategies. It consists of going for several losses and waiting for the one win to recoup all previously lost money.
Always put a stop-loss.
A winning trade can only be cut for two reasons. The first is that the course has met your goal. The second is that the price is showing signs of a reversal (breakout of higher highs/lows, exit from chartist figures, a breakout of a support/resistance, divergences…) and that you decide to prematurely cut your trade at a loss. To avoid getting too stressed and cutting your position too early, don’t just stick to your trading screen. Beginning traders are generally advised to trade only large units of time in order to reduce stress and not have to constantly monitor their trades. The stop loss is precisely made for that. If your trade is a winner, raise your stop to limit your risk or eliminate it.
