Follow 5 Simple Rules To Make Real Money On Forex.by Ashik Topasiafx Editor at TopAsiaFX
Many people get into Forex hoping to make a fortune quickly and only end up being disappointed. The truth is that Forex trading is not a get-rich scheme - fast.
But you can make some real money out of it?
The short answer is yes. This article will expose some important things you should know and should do if you're interested in maximizing your opportunities to make some serious money from forex trading.
Be in the know
If you have been thinking that luck alone can make you a tidy sum in forex, you will be disappointed. While it's nice to have a hot hand, it will be much more than that to be a successful trader.
Unfortunately, some people do not understand that FX and gambling are two different things. Gambling is a game of chance, while successful in forex mainly depends on the actions or inactions of a person.
Thus, you should have a good understanding of how the market works. Start by identifying the source of reliable information as Forex Academy to have a foundation. The good thing about this website is that it contains almost everything you need to know about forex basics.
You should also be interested in the political or economic events happening around the world because this may have profound effects on the market.
Keep emotion out
If there is one thing that could be the ruin of every trader, it is greed. But it was not just greed alone - fear can be just as dangerous.
Fear can make you close out the trade before the optimal point, without realizing a reasonable profit, and greed can make you hang on too long, which could see you suffer huge losses in the process.
Every decision you make should be guided by reason or knowledge. A common mistake that people make is to calculate how much they have made and use that as a basis whether to close or not. Instead, check out the real market signals to determine the direction of your trade are likely to take.
For example, if there are new highs were made on consecutive days in an uptrend, it would be advisable to maintain an open position, utilize trailing stop that will allow the market to automatically close trades for you when certain parameters are met.
On the other hand, if the trend starts to flatten out, it makes sense to get out. However, you do not have to do it blindly because there are other considerations to make.
Despite trying a lot if you still can't get a hold on your emotions then you should use robot trading or automated platforms.
Finding a reputable broker
While it is possible to trade without a broker, it is not a recommended option, especially for the novice trader, brokerage company connects traders with the money market, offering valuable advice and deal with withdrawal requests. They also protect them from access user accounts and address unauthorized trade disputes.
However, brokers are not all cut from the same cloth. Unfortunately, it's not unheard of for a broker bankruptcy, shutdown or refuses to honor withdrawal, and if you are working with a brokerage firm that is not regulated you have a slim chance of recouping your investment.
Therefore it is important to do your due diligence before establishing a relationship with a broker. As a minimum, they should be regulated by the FCA. You should also be interested in building their withdrawal procedures and funding and ensure that their customer service is excellent.
Practice makes perfect
Mistakes are costly when it comes to forex trading. A single calculation error might blow your account. In 1998, George Soros - one of the most successful investors in history - make the wrong moves and lost $ 2 billion.
While this may sound daunting for new traders, the truth is that Forex trading involves a substantial amount of risk. But, thanks to a demo account, you can learn without losing real money.
This account simulates the real market and allows you to trade like conventional traders will. The only difference is that you are not going to invest any real money. This will give you an opportunity to get a sense of how forex trading works and can help you develop a trading strategy.
Again, you will learn the ins and outs of using the software so you do not get upset with things when the trade is really going on.
Forex trading can be profitable if you take the right approach. Granted, it may seem complicated when you start, but in reality, it should not overbearingly difficult.
Finding a reliable source such as TopAsiaFX, and you will significantly increase your chances of success.
Created on Dec 16th 2019 22:54. Viewed 227 times.