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Five habits of successful Forex traders
Written by: PaxForex analytics dept - Friday, 28 October 2016 0 comments
Long-term success in the forex trading does not depend on the system or the wonderful tools available at your disposal. Systems are usually insufficient, and often traders have to switch from one to another depending on market conditions.
The key to long-term success are good habits, and they will be discussed in this article. Here are five tips that can be very valuable for you:
1. Trade with a low debt burden.
Many traders, especially beginners, are blinded by the leverage that can be used to increase their profits in the Forex trading.
However, the leverage is a double-edged sword, because it also dramatically increases the potential losses. At least initially engage lower leverage until you have a thorough understanding of how the market works.
2. Work with the major currency pairs.
Trading with the major currency pairs is the easiest way to predict the movement of currencies with the largest
trading volume as they difficult to manipulate. Trading with exotic pairs can be profitable but also too risky. It is better to focus on the major pairs.
3. Test everything.
When you get a new system, pre-check it on a demo account. Take a few weeks to give the system time to show its true quality. Do not quickly judge whether the strategy is good or bad. There is demo trading for this - a great way to test different strategies.
4. Constantly increase the knowledge base.
Always learn new techniques and methods of trading. Never allow yourself to fall into the trap of complacency and laziness. Other traders will improve their skills and you should do the same. Learning how to make more money is a very interesting activity.
5. Use the system.
Never trade based on hunches or “the sixth sense”. This is a recipe for disaster. Trading with strict and personally tested rules will protect you against silly mistakes that can be very expensive.