The Forex, currently, is the most easy to understand (and potentially profitable) online trading. There’s a definite trade policy, especially by some brokers, such as to render the currency trading is very similar to an online game. This, however, tends to forget, or to pass on the second floor, which, like all forms of investment that involves risk-taking, rarely less than you say, leads to losses of money.
In this article, mainly addressed to those who approach to forex now, we will give fifteen tips to start making buying and selling of foreign currency.
Forex: 12 tips to get started
- If the trend is to the upside, you should never go “short”, vice versa if the trend is bearish, you should try not to open in positions that are “long”.
- Always consult a large period of time, compared with what you have chosen for your business, so as to have a really complete picture of how they move market prices, fully understanding the trend.
- If you are in difficulty in identifying a trend Forex, the best solution is to observe and analyze a longer period of time.
- Do not improvised, unless you’re masochistic streak, not intuited. Always make sure you understand what the dominant trend of the market. For scalpers instead there is no need to study the long-term trend, it is more important to know what happens in the market at that precise moment, and never more than 5 minutes if you want to analyze a period of time.
- Never risk more than 2 or 3% of the capital you have at your disposal. The difference between a winning trader and one that loses money instead is the adaptability to adverse market conditions also. A “trader” will end up losing money in a short time of its capital in 10 or 15 trades.
- Do not continue to add new positions to a trade that has already proven loser, on the contrary only do so if the trade itself has already proved lucrative.
- If the weather proves to be negative, do not hesitate to tear yourself away from your monitor. Take a break every now and then is a wise advice, do not run “trade” for a few days can be economically viable.
- If you are at a loss, continue to try to recover the money lost can easily lead to a frustration that affect the judgment and, very easily, into bankruptcy.
- Let go of the profits when you can, a position that is open is good if you are generating revenue: when the market moves in your direction we must take advantage of the moment.
- Always have an exit strategy properly if you do so, you run the risk of losing all the profits that are generated in a given period of time.
- Having two or more open transactions provides the ability to end of previous locations, keeping open those that are generating good profits.
- Try to always cut losses as soon as possible, get out quickly if the position you have open is not profitable or even negative, without waiting for the situation deteriorates even further. Never put the “stop loss” back in time, the loss of money could be exponential.