These tips from an expert trader will help you succeed in Forex.
Our senior trader Ebuka Ambrose is a skilled trader with over 2.5 years of experience. He has created many educational events, both physical and physical, for OctaFX. Here are some of his questions and answers with Ozo.
Understanding Forex Trading
What is Forex? Forex is just a way of exchanging foreign currencies. The Forex market is a global market where currencies are exchanged and traded. It is the largest financial market in the world, with a daily turnover of $ 6.6trn. This means that $ 6.6trn is traded on the Forex market every day. Can you imagine that?
Let’s think about the currency change we make when we go out. You are selling your home land to get the money you need in your travel land using the exchange rate.
The main goal of Forex trading is to buy or sell one currency relative to another currency for property.
But how does one get to buy and sell money? The answer real estate.
Supply and demand
Currencies fluctuate depending on supply and demand because stock prices are subject to volatility. You have the advantage of being different in value for money when we buy relative to when we buy, and that is.
For example, if you bought $ 100 of US dollars at a price of 500 naira in cash, you bought 50,000 naira of US dollars. If you were to sell the naira later, when the price went up, say 600 naira in cash, your $ 100 now is 60,000 naira and you will have 10,000 naira in profit. make up.
You’ve heard the words ‘Buy low, sell high’ and ‘Buy the dip’. Understanding market conditions and their effect on currency change will help improve the accuracy of your forecast of market movements. This is what you do with Forex trading assets.
Tips for success in FOREX trading
Avoid unrealistic expectations
The Forex market is a place with high volatility, so you need to approach it with caution. You want to set realistic goals and keep fear and emotion out of the picture.
Bargaining is a smart thing and needs to be approached equally. There is a higher education section with fees at the end. While you may not be able to become a master in two weeks or months, the best news is that you can gain Forex trading power.
Watch this video that compares Forex in different ways.
See for yourself
The best forecasters in various fields are those who know themselves well.
Key: Spend a lot of time on introspection knowledge.
Knowing the kind of person you are will help you understand your goals, aspirations, and marketing style. This is important to keep in mind as you want to evaluate the risk side for each marketing strategy you decide on. Can you stomach the risk of loss for long periods of time? You may be using long -term trading, leaving your trades for weeks or months. Can’t you sleep without replacing a blanket? You might use a sunscreen.
Describe your goals
Your responsibility in Forex trading is decided by you and only you. The most important thing before you try to measure your business is to determine what kind of business you have. Setting a clear goal will help you make the steps listed to get there.
Bonus points: It helps if you hit your goal and look at it.
You need to know if your marketing efforts meet your goals.
Enjoy your small beginnings
The first learning process of Forex trading does not have to be fast. You need to spend your time rather than your money in this area. Founders build strongholds, so take the time to understand the basics – the terms, the techniques, the commands – before you change the mindset to learn how to look at the markets. . While most of the trading knowledge comes from trading and knowledge, the trader needs to learn everything about the Forex market before entering it. This has geopolitical and economic factors related to your desired investments.
Don’t make a starting mistake
Going forward to trade without first knowing the market, or giving an idea or FOMO without thinking, among other popular start -up mistakes, will cost you your trading money. by the time. It’s a rule that you know you need risk 1-2% of your trading money in a market. So, you have to regularly implement crisis management tools to your trade, such as expiration and delivery orders. Keep these things in mind and the hosts will be what you want.
Think like a student not a pro
Research from Tetlock and Mellers shows that there are two types of predictors: one that usually corrects predictions based on unexpected events; and few other methods to do so. While your sales will always be supported by a full analysis, it’s important to review your analytical frameworks on a regular basis. Experts in predicting the movement of the market keep in mind when it comes to their beliefs. To be a good Forex trader, you need to quickly accept it if you are wrong and don’t let your money get in the way.
Research, practice, innovate
In addition to frequently criticizing your evaluations, read and research! No one is successful without opening their minds to knowledge. Benjamin Franklin once said: ‘The input of knowledge is the best reward.’ In other words, having accurate knowledge about the Forex market is important to help you make informed decisions during trading.
Read about the latest market trends and things related to the industry. Search for educational information. To get started, go to the training section of the OctaFX website.
Test the designs using your DEMO account. Don’t go live without trying when it comes to trying out a plan. Trading on a professional account will relax you and give you more marketing insights than you have to rely on to trade using a real account.
Write everything down
Keep a marketing journal where you write down your entry and exit numbers and the ideas that guide those decisions. Think about mental factors such as anxiety, fear, apprehension and looking at them. Studying past trades will give you insight into your style, style, how often you will update your design, if your design actually works, and how to change all of these things for you. earning money. In this way, you will develop the conviction that you need to follow in your marketing strategy.
Always monitor your design
Calculate the reliability of your current system. Choose your last 5-10 trades to measure your profits and losses.
Remember leverage is a two -edged sword
Traders use leverage to increase revenue from Forex trading. Leverage is the borrowing of money from a buyer that gives the buyer the right to buy and sell more money. Realizing that while leverage can increase your ability to make money, it can also increase your losses is a first step in driving this idea. Forex traders introduce the most important trading strategies that come with using hooki-nalo orders to limit their losses, as low and conservative lots can provide good value and reduce losses.
Focus on saving rather than earning money
Although it is one of the most powerful trading markets in the world, the risk of Forex is increased for traders compared to other markets. Recovering from a loss is more difficult than growing your business balance. In order to avoid losing money abroad, do your homework and find a reputable advertiser. Reduce risk and increase success to your liking when testing auditing technologies using an account (or DEMO). Take care of your business as a professional by writing everything down and staying in the business unit. The moment you start making permanent losses, your business fails. Avoid failure by using appropriate financial management technologies and controlling your leverage.
Choose a trusted advertiser
You want to trade with a broker that will give you the opportunity to make the most of your trading opportunities. There is a lot of uncertainty around the Forex market and, of course, your investor doesn’t need any of your heads. Having a client with all the necessary tools allows the Forex market to be smart on its own. Ideally, you’ll want to go with a long -term client to learn from his or her own processes, who can and will continue to change their performance in a way that meets the needs of their user. OctaFX is a trusted broker with over 10 years of experience developing suitable trading tools for ambitious Forex traders. When it comes to innovation, speed, education, and promotional offers, OctaFX is highly sought after.
Gregory Mankiw in his Principles of Property explaining the main point: ‘Marketing can improve everything.‘You hope to hold on to this world of real time with Forex trading. It is much more efficient in the Forex market than the trading strategy used. It is determined by a host of other factors: performance, constant training, patience, recognizing challenges, becoming wise, and ultimately trusting yourself and your employer. There is only one introduction and time to create another art form. You can join thousands of people who have gained financial freedom through Forex trading. Mastery is just like you!