Trading the Forex market can easily get out of control if you do not stick to your trading plan or you have not found yet trading strategy with which you are comfortable. Whatever the cause of your problems in the market, this article will try to give a few tips that can turn into a profitable forex trader.
Understand that only you can control.
The market can not control, no matter how direct or indirect attempt to do so. You have to understand that the market has no idea that you exist. This is not a “creature” and does not care if you lose money on a transaction or for all transactions. What we must do is learn to trade with the market and taking tov, giving you that can get if you have a plan and follow it strictly. This is called “to control” and the more often and directly control your emotions and follow the logic of the market, the more frequently will benefit from their transactions. Emotional traders try to “force-fit” the market with their own opinion and they are happy, angry or sad, depending on whether the market should desire. You have to understand that the market is independent beast and that you hit the stop with 1 pip or not you activated Holocaust profits for 1 pip is what is nothing personal against you.
Trade with a long term perspective.
Even the best traders in the world have weeks of losses, but because they are still standing in their actions, but because they realize that a transaction can not determine success or loss, they are still profitable at the end of the month. On the other hand, are traders who after prolonged loss, begin to put a lot of feelings in any position, which leads to increased risk, but whatever the reason for the loss should not think that one or more failed transactions you make unsuccessful month or year. When you start to think long term and find out what really matters and increase the duration of the perspective and the end of the year you will be winning – stop risking so much to spend and feel that will help you not do crap like to trade when you know that you should not or you risk too much.
Focus on the daily chart.
Too many traders focus on the trade of small graphics – 1 or 5 minute. All these graphs make novices to pretarguvat and eventually lose money. Need to focus on the daily chart before attempting to trade on smaller graphs. The reason for this is that the daily chart offers real movement without the daily fluctuations and “market noise” while you also offers plenty of opportunities for trade in months. Small graphs contain many “market noise” and meaningless moves that will lead to more confusion and poor trading decisions to the untrained eye. Focusing on the daily chart was also one of the things that made me successful trader in the market.
Become patient trader.
If you want to become really profitable trader must understand the power of patience. I did “U-turn” in its trade until I realized that I should not go into many transactions necessarily to be profitable. In fact, once stopped pretarguvaneto and become more patient and disciplined my results suffered a dramatic turn for the better. So the easiest thing you can do is just to relax, to take a deep breath and accept the fact that dealing with fewer transactions can bring you more profit than the numerous transactions.
Many beginners just do not take profits or when they do the profits are so small because of waiting they took them only when the market has turned dramatically against them. You can ignore the feeling of hope and greed and learn to harvest Holocaust profits that the market gives you. There is nothing wrong with trailing stops in a market that enable you to close more profit. But if you continue to take small profits and stop missing if market reversed – it can affect your position worse and then we have a problem. Typical levels of risk-reward is 1: 2 or 1: 3 and I do not care whether the market continues to move in my direction because I won 2 or 3 times the amount risked position and because I know that there will be other opportunities very soon.
Hone your strategy for trading.
The last tip that I have for you is to try to hone your trading strategy before attempting to trade with real money. Many traders lose money just because of the lack of such a system. You should never trade with real money if you pevchelivsha trading system, so try to hone his plan to demo trade for at least three months. You should not trade in the market unless you’re 101% sure that will happen exactly what you expect. As you can do it – then you will avoid pretarguvaneto and making stupid decisions in the market. Start without strategy is the same as if someone opened a restaurant without people who know how to cook. This means that you will start to lose money fast.
Trader Georgi Bozhidarov