Forex, is known as the foreign exchange, which is a global market where the currencies of the world trade. It is known to be the largest and the most liquid market in the world where high volumes of trading takes place. (jak vydělat na forexu)Forex is quite different than the stock market exchanges that are found at a local level; here the trading of all around the world takes place. It is an outstanding place to make high returns and quick cash.
The dos and the don’ts
If you are new to the forex market then there are a few do’s and don’ts you should be aware of.
Do’s
As a new forex trader you should be ready with a trading plan. As a successful forex trade can only take place if one has the understanding of the entire foreign exchange.
In order to have a smooth start one should keep in mind the present monetary situation globally and also should study the basics of the forex trade.
Being a new trader you should always start with your trade at a time when the market is progressively growing or going down.
Always keep in mind the gain and loss ratio before beginning the currency trade.
As a new trader one should do a detailed study of the technical and fundamental aspects of the current trading patterns. This can be done by using charts, patters or graphs.
You can also make use of trading robots for guiding you in your market success.
Don’ts
Don’t take impulsive decisions.
A new trader should avoid taking hasty decisions in order to earn profits, learn the tricks of trading.
Avoid indulging in trades during inactive market hours as this can cause heavy losses.
It is not considered to be wise for a new trader to trade with all that he has; especially when he doesn’t have a proper understanding of the forex trade. Trade with adequate amount of money then only can you minimise the risk of losing the money.
Keep your emotions apart as business in the forex market cannot be done with feelings.
Along with these dos and don’ts it is also important to learn about the best trading strategies without which no business can flourish. Selecting the appropriate trading policy is very important and is necessary for a new forex trader.
Scalping- This is a kind of a short lived trade with a possibility of a few minutes only; this typically uses the tick charts.
Day trading- This is a kind of trade which exits before the end of the day; so this removes the possibility of getting affected by large moves that are made overnight. This trade lasts for a few hours and the price bars on charts are set for one or two minutes.
Swing trading- The positions are held here for several days and in a swinger trade the bards every half an hour.
Position trading- This is a long term trade which maximises profit from the major shift in prices. A long term trader looks at the charts at the end of the day.
These are a few strategies that are quite popular and are known to be the best forex strategies.
Tips for earning big in forex for beginners
Those who are new should follow the below given tips if they really want to trade and also gain at the same time:
Know yourself- In order to make profit in the market it is important to know the market and for that it is important to know yourself. You must carefully study and analyze your financial goals before engaging in forex trade.
Plan your goals- It is very important to plan your goals before you start trading in the market. Decide your aim and the time that you can devote to trading then go ahead with the trading process. Also be sure if you are ready to take risks because trading is a risky business where one gains and also looses.
Choose your broker carefully- For beginners it is very important to choose the broker carefully. There are a lot of fake brokers so one should make the choice properly; find out about the clients your broker deals with. Also find out about their customer services and the trading software used by them. Once you are sure about all this then only choose a broker.
Start with small sum of money- It is best to start with small sums and low leverage and then increase the amount as soon as you start generating profits. One should not think that a larger amount of money would gain more profits because this is not the case.
Single currency pair- It is better to restrict the trading to one currency pair, which one is familiar with. It is not easy to know about all the currencies and keep a track of all of them so it is best to start with one pair only.
Control on your emotions- It is suggested that traders should keep a control on their emotions. Greed, excitement, panic and fear are few emotions that should not be there in the life of a trader. This is the reason why traders are told to begin with small amounts; this way they will decrease theri own risk which in turn would reduce the impact of emotions.
Do not rely on forex robots- It is not advisable to rely on forex robots or the expert advisors as they can guide but not make one a millionaire. One should rely on his own intelligence and not on some robot made by humans themselves.
Forex, is an excellent place to trade in but if you are a beginner and new to the trading market then it is advisable to start small and to follow the above given tips to gain more and lose less.
