HALAMAN SELANJUTNYA:
Forex Trading Secrets That Turn Average Traders Into Profitable TradersThe forex trading secrets that will make you a lot of money are not difficult at all. The problem is that beginning traders (and experienced traders alike) make trading too difficult. Complicating your forex trading may boost your ego or make you feel intelligent, but rarely does it result in more money. Sometimes the simplest answer is the best answer, and this is especially true when dealing with the foreign currency exchange market.
So what are the forex trading secrets that actually turn amateurs into profitable traders? Here are a few to start with:
1. Keep it simple. I have already alluded to this, but my point is that a trading strategy should not be difficult to understand or execute. If you have to study for hours and hours before you take a trade, you are doing something wrong. Any trading strategy should result in relatively quick decisions and obvious answers. This tip holds even more weight for those who are newer to forex trading. As you gain knowledge and experience, you can test out more complex strategies. But as a beginner, you'd got to master the basics first.
2. Don't trade just because you want to. As traders, we want to trade. That is what we do. But every good trader understands that there are times in the market when you just shouldn't trade. For example, during the summer months, many people take vacation, there is not a whole lot of news, and the market generally slows down. This usually means that the markets range back and forth without going much of anywhere.
In conditions like this, sometimes you just have to step away. If there is not an obvious trade, don't force it. Millions and millions of dollars have been lost by people who just had to enter a trade right away.
3. Don't make matters worse. When I was in trouble as a kid, my dad used to always say that things might not get better, but they can certainly get a whole lot worse! That is very true advice when it comes to trading as well.
Look, even the best trader is going to get into losing trades. It is inevitable. One of the best forex trading secrets is to cut your losses and move on. A common practice by beginning traders is to double up. If you have entered a trade and it has moved 100 pips against you, you think it can't go any further, so you add to your losing trade.
This might work once, twice, or maybe even more. But if you do it enough, you will certainly lose ALL of your money - not some of it, not most of it, but all of it.
So here's what you do. Before you get into a trade, know the exact point at which you will take no more losses. Then be stubborn. Don't ever move your stop-loss. If you get into a bad trade, the best thing you can do is take your losses and move on.
These forex trading secrets may seem like common sense to most traders, but the reality is that most traders ignore these tips and end up losing money. Don't be like them. By keeping things simple, trading only when it makes financial sense, and not making a bad trade worse, you will begin to make consistent profits in the forex market.