Today, especially in the recession still being felt around the world, people are looking for ways to make money. People try all sorts of things just to be able to make money and if you have a small amount saved, seeking ways to make your savings grow to be enough to support everything from basic needs that are not really necessary, but they have been part of daily life, like having, having dinner at a favorite restaurant, massages watch a movie you’ve been waiting for, etc. whatever it takes, even if the money really is not everything, it is a must to keep daily life.
Many people are thinking of venturing into the forex market, as it is a very lucrative financial market to make money. But people make money doing forex trading only if they are doing the right thing and implement appropriate strategies needed to win and not incur losses. The online forex traders and investors trade Forex on a daily basis because they find it lucrative and rewarding. But how is it actually succeed in doing so?
Here are some tips forex trading to avoid losses when you do forex trading:
1. You must be equipped with the knowledge, both basic and complex on the intricacies of forex trading and forex market. This is a must. Without the base, you will not really be able to go anywhere.
2. You must be able to know what the relationship and characteristics are the currency pair you are trading. Do not just focus on one.
3. Do not be too ambitious when you are trading because you will not really be profitable and end up losing more than they are winning and at the same time not being too cautious, and you’ll end up going nowhere.
4. You need to be independent in their calls. Relying too much on other strategies that others have been using really could not work for you. Play by ear, practicing with a dummy account then slowly develop their own strategy.
5. Do not be too greedy. Chances are you might not be able to develop the discipline needed to be-forex expert.
6. Do not be too analytical. Keep it simple and to the point.
All experienced currency traders will tell you that not overtrade. The question is, what is too commercial? Is it true that the less time spent in the foreign exchange market, the better? If you leave the negotiation when you have made your goals, or is it better to stay to catch more opportunities?
Forex is a risky business, and while some claim that less time is on the market, the biggest change that you keep all your safety benefits, others come with the focus to be active almost constantly. No matter what others say, how, when and why trade will depend entirely on your trading style. And since each operator is different, find out the hours pass trade up to you.
In my experience, looking at the screen all day only leads to losses. If all you do is see the screen, you will be drawn in the awkward trade. It is possible to win at some point, but give it all back later due to fatigue, boredom, anxiety, fear or greed. Do other things to take the edge off otherwise you will lose money.
I’m not in the market all the time, but I spend eight hours a day average trading and foreign exchange to improve my skills. I personally spent time negotiating divided into two categories:
1. Current Trading
2. Leaning: Whale-screen, table analysis, software design, commercial reading materials, forums, blogs and news, etc.
Either to trade in the morning or afternoon depending on market movements. If there are valuable moves in the morning session, afternoon session usually ends up being lifeless and monotonous. Conversely, if the morning session lacks emotion, roller coaster moves will probably happen during lunchtime.
Use charts to help you figure riding the waves up and down. Whenever you are in the wave, pay attention to leave to achieve the goal or reach the stop / loss. This way you can get away from the computer while earnings accumulate or minimize losses until the next attack of opportunity.
The trick is to learn to feel the mood of the day foreign exchange market. Once you are tuned to the market, you have a good idea of how much time must pass behind the screen.
The last trading time depends on what kind of a day it is – or irregular trend:
1. During a day’s trend might be a good idea to stay in the midst of setbacks since these trends are only minor setbacks. Take the bottom, stop and go .. I personally put a stop and sit, relax, I discuss forex basics with my dog, do other things in the house! Usually, a pleasant surprise waiting when you return.
2. During the irregular and unbalanced market, you can operate each swing. On a day like this volume couple of points here and half a point there. The trick is to spot the twists and trading swings.
In my experience, if you understand the personality of the market, then it is much easier to trade. Find out if the market is trending or be irregular requires a bit of intuition and experience. Do not be discouraged if it does not come to you right away. With experience comes a great understanding!
We will try to compare the forex market a farmer (yes, a farmer working in, say, the potato fields).
Strong downward trend in the previous day can be equated to the farmer fall down the hill. It is depleted, probably wounded and needs some time to sit in the bottom of the hill to recover before returning to work again. So now the trading day will start in an irregular manner and by lunchtime the farmer will feel refreshed and rested enough to stand up again.
Days uptrend can be compared with the farmer to raise a giant bag of potato of the hill. It is hot and tiring, so the farmer makes a short stop and put the potatoes on the floor (reversals), rest a while and then continued up the hill.The higher the farmer gets, the slower it moves from the giant potato bag is getting heavier with each step. So it grows longer stops and rest in order to move forward.
Irregular day with little difference between day’s high and low of the day, the farmer feels sick. However, this means that the next day will probably be a trading day, as the best farmer-logging goes to work again!
Every trader has a different strategy to address the market. Use your experience to understand the characteristics of the market and make better profits. Remember, the important thing is quality, not quantity. What matters it is not how much you spend forex trading, but how you use this time to fight the market.