Your success in the Forex market depends solely on your experience and emotional stability, but Go4rex Company hopes that the tips below will make your path to professionalism less thorny.
- Learn the basics
First of all, you need to acquire fundamental knowledge about financial markets and technical analysis, understand what laws the Forex market is developing, and how to make money on it. The trader should be able to analyze and predict the state of the market and be psychologically ready to trade.
- Learn from demo accounts.
It makes no sense to try to master the required skills by trading directly on real accounts. While you are trying to master the basics – your capital is melting due to inept handling. To practice strategies and obtain the necessary set of knowledge, there are training demo accounts, which may take more than one month to train. It is impossible to run up the market.
- Familiarize yourself with the tools of the trader.
Study thoroughly the trading platform of the broker and all its technical capabilities. In the future, this will save you a lot of time and money.
- Know your rights and obligations.
Carefully read the documents regulating the relationship with your broker and clarify all inaccurate points. You have the right to have all the information regarding your cooperation and work in the foreign exchange market.
- Always start small.
You can use micro forex accounts as a launching pad – evaluate your capabilities and develop with minimal investment.
- Keep Calm
Do not step over the level of psychological comfort – reduce the amount you operate with, if during trading you lose your composure and confidence.
- Do not play with fire
Forex – not a gambling for money. Adventurers in the foreign exchange market do not stay long. You want the work on Forex to bring a steady and stable income. Therefore, never go all-in on the principle of either a pan or lost. Do not put money that you cannot afford to lose.
- Learn to accept loss.
Some losses are part of work in the Forex market, take this fact as a given. Draw conclusions and try to treat this philosophically.
- Trade within the established limits.
Do not try to open a lot of transactions – you cannot keep track of them. Trading in several markets will not succeed immediately, because they are governed by various independent factors.
- Save, not try to increase
Limit your risks, even if it leads to a limit on profits. Your task now is to learn not to lose your capital and you can save yourself by reading Go4rex website portal.
- Consider possible risks
You should have a cash reserve to use it in non-standard situations. Analysts advise to invest in trade no more than 50% of the total capital. At the same time, no more than 10% of the available funds should be invested in one transaction. Think what part of these funds you are willing to lose in case of failure? Set the standard risk tolerance – preferably not more than 5%.
- Do not forget to use Stop Loss.
Incorrect asset management is the main cause of losses. Stoplights serve to prevent your losses, so learn to use them and find their optimal location.