Forex trading can be very profitable, but this depends on the investor’s level of experience and negotiation skills. Thus, this market is rewarding if you are an experienced forex trader and know how to apply the right strategies, but if you are just starting out, we advise you to invest small amounts while following the general advice of working in this area to be able to invest at higher levels in the future. Work in this field is volatile Very much, so you may gain a lot, but you may lose a lot in return if you do not have enough experience.
Forex trading secrets
Monitor daily pivot points
It is important to monitor the daily pivot points for indications about the trading path or potential market reversals, regardless of the trading strategy you are following. Paying attention to the daily pivot points is especially important if you are a day trader, and it is also important for all other types of trades because thousands of other traders monitor and rely on the pivot points.
Take advantage of opportunities
The most successful traders are those who only risk their money when they have a great opportunity in the market, and this is one of the most important secrets of their trading success.
The rise and fall of currencies are great opportunities for success in forex trading, so you need to know the price to buy which has previously proven to provide great support to the market or to sell at a price you know in advance as an opportunity that will not be repeated.
Preserve your capital
Avoiding big losses is more important than making big profits in forex trading. This might not sound like quite right to you if you are a newbie to the market, but winning in trading involves knowing how to conserve your capital.
The reason why most people are not successful in forex trading is simply that their money is running out and therefore they cannot continue trading, they lose everything before they have a good chance to enter a profitable trade.
Therefore, in order to make a profit, you must have enough investment capital in your account to take advantage of trading opportunities on an ongoing basis.
Make simplicity your goal
There are actually an infinite number of potential lines of analysis that a trader can apply on the chart. But using more lines of analysis does not necessarily mean that they will lead to more success. The more it is used, the more confusion, doubt, and hesitation of the trader increases, and this makes him drown in details and forget the main goal.
A relatively simple forex trading strategy with few trading rules and minimum indicators to be taken into account tends to work more effectively to reach successful trades.
Set your stop loss orders at reasonable levels
This point may seem counterintuitive to save your capital in case you lose a trade, but it is also a key element to winning in forex trading.
Many novice traders make the mistake of thinking that managing trade risk means nothing more than placing stop loss orders near the entry point of the trade. It is true that part of good money management is not to enter into positions with loss levels that are too far from the entry point, since the risk can bring more profits if the trade is profitable. Your entry point, which means that you will lose a lot before you stop, and then you will not be able to return to the market with the same strength you started with.
One of the general rules that is followed to properly set stop loss orders in forex trading is to set the stop loss order away from the price at which the market should not trade, if your analysis of the market is correct.
Thus, we see that Forex, like any other investment arena, in which the trader must learn the basics of the field by practicing and looking at them on an ongoing basis.
Of course, these are not all the basics to acquire when entering the field of forex trading, but we can consider these points as a very strong start if you follow them correctly.
We wish you success.