DolphinSutter793
There is no doubt that experience can be the best supply of learning, where your personal mistakes cause you to learn your craft and you eventually succeed. Forex trading isn't as easy and simple as it seems, aside from people who spend the required time doing the extensive research necessary and then follow their trading discipline every time they trade. If reading books were the key to success in Forex, 90% of traders would be in profit rather than suffering the loss of a lot of the cash they started off with.
According to trading experience in the Forex market, there are some lessons that each trader should be aware to be able to curb his losses and allow the flow of profits be more consistent.
1 - Keep calm and not get at a loss for your feelings while trading, especially greed and fear, simply because they will in all probability lead you to wind up facing losses. The marketplace always favors those people who are patient, so do not close out your trades soon after the marketplace starts relocating the alternative direction or sit idly by waiting for the right price to go in your position.
2 - Avoid overtrading. You may overtrade simply to recover losing you recently incurred. Greed might entice you to definitely trade to earn more if you enjoyed some profitable trades earlier. The consequences might be harsh if you continue a losing streak and lose the cash you already earned, thus causing you to be frustrated and less-confident.
3 - Trading style differs from trader to trader, but trading in the U.S session will make you a decent profit in that the marketplace moves within the same direction 80% of times. Huge trading volume is the reason behind this as the European session and the U.S session merge, hence resulting in high volume and less choppiness.
4 - Try closing your open trades before data discharge of high importance since the market exhibits high volatility in that some time and often moves within the opposite direction from where you believe it might. It simply deceives traders, so totally relying on data releases might not help you.
5 - Don't trade against the trend. Going long in a bullish market will certainly enable you to get profits but if the price starts moving down, selling is not recommended. In fact you should purchase more on dips until and unless the marketplace totally changes its trend. The same holds true when the marketplace is bearish; sell more about bounces and do not trade against the trend.
6 - If you follow candlestick patterns for trading, it's better not to have confidence in them before the discharge of important data such as speeches and press conferences that can possess a substantial impact on the market. Many traders close their positions at the moment also it leads to making deceiving candlesticks.
7 - If you think you should enter long on a certain currency pair, don't buy an enormous lot at the initial reason for entering. Making small, stair step buy lot entries with certain gaps in between can be much better because it mitigates the danger when you know the marketplace is really moving upwards. You could make your buy entries after every 10 points for example.
8 - Always go flat on Friday. Closing all of your trades before the market closure on Friday can certainly avoid risks because the market might open with a gap within an unfavorable direction on Monday because of some news or events which comes on the weekend.
These are several things you might not have known if you're a newbie or have been trading for some time, so try implementing these if you trade and you will certainly notice improved results.
