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Make a lot of research before giving in your money to a stranger, you can also find out from your friends who have been in the game of trading. Forex brokers are easy to access online if you search for them. But take precaution. It may not be easy to tell a scammer from a good broker.As you search for a broker to trade with, look into their reputation and see how long they have been operating. Most scammers tend to use very seductive language promising 100% wins and bonuses which is not the case in Forex. Be careful
Hello Trader,
It is normal to feel that way, so i should assure you that you don’t have to beat yourself about it. Most traders have gone through the same and some are still battling with it. If you have tested your strategy very well, on several times and you feel it is the one, then don’t quit on it.
What you have to do is work on yourself.
Learn to control both your physical and psychological reactions towards the market. What is causing you all that kind of frustration is not your strategy but you. Greed.
Your desire to make too much money while risking very little. You expect much from the market and you want to risk less. This makes you set your stops very close to your entry point and your trades don’t get enough space for price volatility adjustments. On a single movement your are stopped out prematurely. And when you manage to escape that you never hit your target. Because your targets are unachievable.
Having a strategy is not enough to make you money. You need to have a strategy that works. To overcome this;
You must revise your money management strategy.
Know how much you are willing to risk
Your risk to reword ratio must match the market volatility for that pair
Your targets should be achievable
Avoid setting stops on levels of support and resistance because price will hit your stop and reverse
Avoid trading with emotions. if you’re scared to take a trade ,don’t trade.
Follow your trading rulesHow are the spreads?
When you enter a trade, you will realise that your trade will start in a negative value even when it is moving in your predicted direction. Another scenario would be at the close of a trade. When you have set a target level for your trade, you will realise that some times it reaches that exact level you have set and fails to close or closes a few pips below or above the target level. why? because of spread. It closes after it has covered the spread fixed on that currency pair.
like a colleague said above, a spread is the difference between the ask price and the bid price.You can take it as a small cost you incur for holding a trade. This ranges from different currency pairs and different conditions in the market at the time you are trading. Some currency pairs have small spreads unlike the others and during release of very important economic news, spreads tend to increase. So as you trade, you can try to explore different currency pairs on a demo account. this will help you to know what to trade, when to trade and which size to use on your trade.
What are the appropriate strategies and recommendations of Forex Tradng?
Yes to add on what leopo said,
First, you need to understand what a strategy itself is?
It is just a set of rules/guidelines or a procedure you put in place to help you achieve something. This means it must include a plan.Forex trading strategies are inform of guidelines on how to trade, when to trade, when not to trade, what do you do when you have a running trade and how to react to certain circumstances before, during and after closing a trade.
First is a trading plan, this tells you the must do and don’ts.
Second, methodology; this describes your trading pattern, when to enter and exit trade. For instance, entering trade at the break of support and resistance, trend line, triangle or on reversal. Confirmation for your trading setups and on the timeframe you should trade on.
Thirdly, your risk management strategies. This includes your risk to reward ratios, how much you are willing to risk per trade,how much size you should use on a trade, stop loss and Target profit levels, how long you should hold a trade and the decision you make when trading.Your trading strategy should also look at your trading routine. This includes both your pre-trading and post-trading routines.(what do you do first before trading and after closing a trade)
When you are able to combine all the mentioned above, you will not only have a successful trading strategy but will become a successful trader. And the only way to achieve that is to disciplinary follow your strategy.
Forex trading is the most risky among all businesses but at the same time the most profitable venture ever. Like they say, it take money to make money and the greater the risk, the higher the reward.
Despite the fact that Forex trading is risky, it has a high yielding rate of return. It is Convenient and can be done at anytime of the day apart from the weekends. The Forex market has the highest number of participants across the global world which means it is highly profitable.
What makes Forex trading more risky?
It is a probability based venture. To trade Forex you have to learn how to think in probabilities. Its rate of success is based on probability. You are either right or wrong. This simply means, once you take on a trade in the Forex market, you don’t have full control over the market. Your chances of success are equal to the possibilities of failure. When you’re wrong you will lose and when right you win. It is all about predictions.
But
Despite the risk, you can profit from Forex trading successfully;Formulate a Trading Strategy that matches your style.
Make a Trading Plan and trade only that.
Work on your self discipline and take responsibility for whatever the outcome is.
Stick to risk management and money management.
Be patient and open minded.Thanks guys for your responses, you really explained it well and I now get it.
BUT
Every one is talking about following trading rules and the trading plan. what should be included on a trading plan? And how is it connected to trading?
