For a successful trading in the financial market Forex you must adhere to certain rules. These rules allow traders to get a good and fairly stable income. Of course, everyone has ups as well as downs, but following the advice set out below even in not very successful months of trading can help you to get profit.
Trade rules are simple and clear but the problem is that it is necessary to follow these tips constantly. Without self-discipline, opening transaction without complying with the rules of trade, the trader will destroy his account balance sooner or later.
Market, particularly financial, does not forgive mistakes. It always punishes those who trade without a system and under emotion. Therefore the most important rule is the opening and closing trades only in full compliance with your trading system.
In your work in the Forex market, usage the following tips will help you reduce the number of losing trades, increase the average profit per trade and save your nerves.
Remember, usually the bull market continues for a long time. Many beginners trading in a bull market and at the slightest pullback close the deal - they think that the market turns around. Thus the profit from the transaction turns small and there is still a high probability that after the closing of the order trader will open a sell order and get a big loss. Therefore, with a growing bull market you should open transactions for buying or not open a deal at all.
In the case of small corrections against the powerful trend you must open orders in the direction of the trend. You may be mistaken in some details when opening an order, but if you open up with the trend, you will receive a smaller profit or a small loss, but not the forced closure of a broker.
Also, be aware that usually the trend reverses not immediately and not very fast. For example, the market uptrend (bull market) may lead to a strong drop but then there are always traders who are open long positions (open to buy) and vice versa in the case of bearish movement. Therefore, learn to wait and be patient.
If you do not understand where the Forex market moves, do not open any order, wait until the situation will be clear. Avoid big losses. First, your stop loss should not exceed 3% of your deposit. Secondly, if you see that your trading system began to signal to the other side - do not wait your stop loss; better close the deal by yourself with a small loss and forget about this deal.
There is another rule: if the rules do not work, do not follow them. Experienced traders know, even the best rules and very good trading systems sometimes give failure. Forex market is very plastic and is constantly changing, sometimes change is so strong that your trading methods are no longer effective and you start to lose money. In such situation it is necessary to stop discovering new deal, calm down and take a break for some days.
Then, with new strength and clear head, it is necessary to analyze the market and, if necessary, make adjustments to your trading system. But there is also a pleasant aspect of variability in the behavior of Forex market - there are times when your trading system begins to work almost perfectly. In such situation, do not waste time in vain, trade actively - you deserve a good profit.
You might also like:
How can you improve your trading?
Swiss people opposed wage increase
China comes out on top
EURUSD – May 21st 2014
USDJPY – May 22nd 2014