Forex Trading – 7 Secrets to Increase Profits
Forex trading is one of the greatest ways for traders to make money. Reason is so simple: Currency movements can be calculated precisely, allowing traders to make handsome profits from their trades. Yet, as Forex trading is also a game of probability, traders – just like any other traders – often lose what they earn. This is because they commit basic trading mistakes, and don’t follow a few simple rules. Here are 7 secrets to help you turn a profit in Forex trading: JKT303
1. Protect your principal – At all times, protect your principal. Don’t trade on the yen if you can’t stand Japanese Candlesticks. It’s the little things that can make the difference when trading on Forex. – Stay with the system you know and trust. There are session times when the market is at its most profitable, and other times when the market is flat, so it’s easy to get whipsawed. Make sure you know what the trend is at all times.
2. confer with your broker – Trading without your broker is like entering the battlefield without a plan. If you don’t have confidence in your broker, that’s at least at the beginning of your trading career. Talk to him or her and find out if you can trust and communicate with them.
3. Keep away from Forex robots – Forex robots are trading systems that are sold to people with the idea that they can make money trading the Forex markets without any effort. Don’t get me wrong, there are some good robots out there, but there are so many bad ones that it’s very difficult to choose a good one. As long as you don’t spend a lot of time trying to find a good one, you’re fine.
4. Choose a broker with whom you are comfortable and confident. Your broker needs to be someone you know and trust, so he or she should give you advice if you ask. If you find that they are a good broker, you will be able to work easily and smoothly with him or her.
5. Keep your style simple – You may have a preference for candlestick charts, and that you feel comfortable with. They’re easy to read, and you can learn a lot from them. However, my personal preference is to follow the price action of a currency – that way, you can understand what the market is really doing.
6. When you’re testing something, you should test it on a demo account first. If you keep testing a new system for too long, you will risk something without meaning to do so. Demo accounts are sometimes more harmful than a real account – that’s because you’ll be more willing to take risks, and you’ll be less careful about setting your limits.
7. If you’re not careful, knowledge will getraid you. You’ll start to keep secrets to protect your advantage – there are plenty of forex traders that already have a profitable trading system, and they don’t worry about sharing it. They don’t share systems because they know that everyone else will have it, so they won’t risk anything. You must be secure.
Following these simple, yet effective rules will help you increase your profits dramatically. You have a much bigger chance of increasing your profits if you follow this advice. JKT303