Forex trading involves lots of analyzing and calculating. But those of you who have been at it for a while, Forex trading is more art than science. The best of you are those who take their time improving their skills through practice and patience. Here I’ll be talking about 9 important tips that most Forex experts already use and many novice traders take for granted. Follow them and you’ll sure find better results in future Forex trades.
Forex Tip 1
Set goals that fit your style
As I said before, forex trading is an art. No two artists can paint the exact same painting in the same wayю Set a waypoint that you want to reach in the Forex world. Stalk the Forex market and expert traders to understand their strategies. This will help you forge the path that takes you to your goal. The strategy of others that you will take a liking to depends on your personality. A little ways down the road of your Forex trading career, you will be experienced enough to incorporate your own strategy that completely fits your trading criteria. Soon you will find that other novice traders are following you as their thinking process somewhat fits that of yours.
Useful Forex Tips Number 2
Do business with an appropriate broker.
Make sure the Forex broker you choose fulfills some basic requirements. The bigger they are, the more leverage they will have. The prices offered will be reasonable and the implementation of their operations will be state of the art. On top of that, brokers like these can trade in massive bulks and is never late in paying the client, i.e. you. Whatever broker you choose, the trades must be carried out in a platform that include certain features that you will definitely require. Choose the program wisely, as a bad choice will cost you time and money.
Is the broker prompt in their communication with you?
How good is their customer service?
If you want to test the broker’s response, check all available means of communication. Search the internet for reviews and testimonials about the broker of your interest.
Forex Tips and Tricks 3
Be consistent in your style.
Whatever trading style you use, be consistent in it. At the same time you have to make sure that your trading strategy and all the fundamental knowledge are considered. Use them to adapt your trading style according to the changing dynamics of the Forex market.
Forex Tip 4
Synchronize your time frame for direction analysis and time entry or exit.
This helps you by not allowing you to mess up all your calculations because of different time frames. Weekly charts and intraday charts, for example, can contradict each other when you don’t synchronize their time frames before analyzing them.
Forex Tips 5
Calculate your expectancy.
Expectancy is the formula you can use to find out how reliable your trading strategy is.
The formula is:
E = [1 + (W/L) x P] – 1
W is the average winning trade; L is the average losing trade; P is the percentage win ratio.
Forex Tips 6
Risk small, lose small.
If you just started out as a forex trader, you have funded your account and all ready to start trading. Risk only a small percentage of your capital and never go all in. Make sure that if you face losses then you should be able to sustain and regain the lost money.
Forex Trick 7
Stick by your system no matter what.
Lose the emotions and stick by the system that you initially built for yourself. Doing this will yield more well-executed trades, which in turn will build your confidence.
Forex Tips and Tricks Number 8
Look for patterns every weekend.
Study charts and extrapolate to estimate what the market condition will be the next week. This can definitely give you a head start and increase the likelihood of more successful trades.
Forex Tip 9
Keep records of every trade.
They are the best learning tools. More importantly, all the wins and losses are yours. So look back at them from time to time.
Follow these 9 tips and you’ll have a disciplined approach in your first trades in the Forex market. These are also some points a few experts tend to forget so it is best to take a look back at them.