Find out the most important factor in forex trading
25 December, 2019
Why do most of the traders lose when they’re trading the Forex? Though this can be improved day by day, it’s not too early for several beginners of trading. A lot of traders quit trading after making loss due to the fact that they’re thinking that trading forex isn’t suitable for you. So what is the most important factor in forex trading? Here are 4 mistakes which were made by beginners and how to deal with them.
The most important factor in forex trading: Experience
Like other methods, you need to learn a lot of new things day by day to get experience in this business, but studying to trade Forex is different from studying to play new tools in which you needn’t take risk of your money to learn the difference from the big to small chords. However, the learning result of trading forex via trial and error on a live platform is rather little, it’s not really a perfect condition to be a famous forex trader.
Most of the high leverage forex brokers give you a free version of their platform, in which you trade in real conditions & discover trading strategy without risks of real capitals.
With a demo account, you will realize how the market reacts to economic influence, news, political changes or chart pattern without applying to real capitals. However, if you seriously love learning from a demo account, you need to take it into considerations and consider as if you use your real capital to trade. Take example, you should not enter the markets with ten lots because you get 50,000 in demo accounts. Otherwise you will not take out of demo trades. Take chances to get familiar to yourself in the demo account & only live once you get confidence.
The most important factor in forex trading: without solid strategy of trading
Apart from the big expectations about risks & time to succeed in trading Forex, the most common fault beginners made is to trade without a clear strategy of Forex trading. 2 aspects of a strategy are available in trading daily. Firstly, a general trading target and secondly, a strategy for every trade you go into.
The general target should consist of as follows:
Determine the market you’d like to be in
Spot the time zone where you can join the market.
Determine position volumes you like to make trading (money/risk managements)
Also, your general goal should consist of a real return which you can make money in a fixed period of times. Besides, your strategy needs to consist of an exit strategy for every trade you made. The exit strategies will determine the upper and lower limit. The exit strategy is also named as order managements.
The most important factor in forex trading: Concentrated on big profits & without money managements
This mistake is easy to understand. The most considerable element in trading Forex is the guarantee of your own funds. In the long term, it is the only method that helps you to succeed in trading Forex., so you need to set a limit of your loss & maximize the profit. What is the most important factor in forex trading? I hope you have the answer now. Next, you can learn about Is low spread good for trading?