Forex is the international currency market. How many people come here to earn money? How many remain in this market in a month? In half a year, and in a year? Why behind seeming simplicity it is not possible to find out a way of the leader to top as price has only two directions of movement - upwards and downwards. But even having chosen the right direction most traders are still incapable to achieve positive results in trading. The reasons of such a defeat are described in the following article.
Starting this business, it is necessary not to underestimate it. As well as in any another matter, you should be guided by a certain set of rules which should be committed to paper. It is required to consider and weigh all. The plan should not have double meaning. It should provide all possible scenarios of development of a situation. It will allow you to exclude an emotional background at decision-making process in quickly varying market.
Another common mistake. Money management in the Forex market is a direct way to achieve success. Following to the trading strategy you will be provided with advantages, but following rules of capital management will bring still even higher compensation. Never risk in one transaction the most part of the deposit, it will allow you to come back to the market again and again after a series of the unprofitable periods.
Immediate closing of profitable positions and inability to liquidate unprofitable ones takes place because of impossibility to control the emotions. When the transaction is included into a positive zone, the trader feels simultaneously fear that the profit can evaporate and greed from desire to receive though any money. And, on the contrary, at losses he hopes for a market turn, that the price will return on former levels.
The losses need to be stopped quickly and resolutely. The price may return never and to absorb all your money. Do not forget about stop losses. The opposite approach is required to be implemented in dealing with profitable positions. Receiving less profit, it will be impossible to pay off for losses.
Never trade against the trend. Nobody says that trading rebounds is impossible. But it is much easier and more favourable to move together with market waves. The impulse by the definition is longer than correction. Thus, to get profit it is more than chances, following a trend direction. Buy in the bull market and sell on bear, otherwise do not trade. Remember one thing, absence of a position, may be the best position. Never add to losing positions.
Another common mistake is absence of sufficient trading experience and knowledge of the Forex market, in other words absence of decent Forex education. Beginners believe that, having ended courses via Internet to trading or having read pair of Forex books, they can profit from this business. In the market professionals trade, and you will select earnings at them. Think, whether easily they will give you the money? Here to earn, it is necessary most to become the professional. Obviously, as on Forex experts become not very soon. Trade is an investment of the experience in concluded transactions.
Source: Forexarticlecollection.com
Starting this business, it is necessary not to underestimate it. As well as in any another matter, you should be guided by a certain set of rules which should be committed to paper. It is required to consider and weigh all. The plan should not have double meaning. It should provide all possible scenarios of development of a situation. It will allow you to exclude an emotional background at decision-making process in quickly varying market.
Another common mistake. Money management in the Forex market is a direct way to achieve success. Following to the trading strategy you will be provided with advantages, but following rules of capital management will bring still even higher compensation. Never risk in one transaction the most part of the deposit, it will allow you to come back to the market again and again after a series of the unprofitable periods.
Immediate closing of profitable positions and inability to liquidate unprofitable ones takes place because of impossibility to control the emotions. When the transaction is included into a positive zone, the trader feels simultaneously fear that the profit can evaporate and greed from desire to receive though any money. And, on the contrary, at losses he hopes for a market turn, that the price will return on former levels.
The losses need to be stopped quickly and resolutely. The price may return never and to absorb all your money. Do not forget about stop losses. The opposite approach is required to be implemented in dealing with profitable positions. Receiving less profit, it will be impossible to pay off for losses.
Never trade against the trend. Nobody says that trading rebounds is impossible. But it is much easier and more favourable to move together with market waves. The impulse by the definition is longer than correction. Thus, to get profit it is more than chances, following a trend direction. Buy in the bull market and sell on bear, otherwise do not trade. Remember one thing, absence of a position, may be the best position. Never add to losing positions.
Another common mistake is absence of sufficient trading experience and knowledge of the Forex market, in other words absence of decent Forex education. Beginners believe that, having ended courses via Internet to trading or having read pair of Forex books, they can profit from this business. In the market professionals trade, and you will select earnings at them. Think, whether easily they will give you the money? Here to earn, it is necessary most to become the professional. Obviously, as on Forex experts become not very soon. Trade is an investment of the experience in concluded transactions.
Source: Forexarticlecollection.com
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