It’s no secret for anyone that trading on the Forex market is not easy. It is for beginners to get used to the new type of activity is quite problematic. This article contains useful practical tips for new traders.
Learn to catch the spades
The basis of trading is that you start selling from the top, and buying from the bottom. A newcomer should not immediately build accurate market forecasts from a technical and academic point of view. To increase the number of your profitable transactions, it is necessary to give a correct prediction of what its market participants expect at a certain point in time. Also try to determine the market mood by reading Capital88 review, not the extreme points of the trend at the moment – you need to build trade, based on the general trend and the dominant market sentiment.
Set the minimum goal – to equalize profits and losses
The most common mistake newbies are as follows. When receiving a small profit on the order, usually immediately close the transaction and take a profit. But if they go into a minus on an open order, then they try to keep the deal open as long as possible, expecting that the course will change its direction in the right direction. This is the most common cause of the discharge of investments and the loss of all profits. Don’t do that. When trading, try to bring profitable and unprofitable transactions in volume, because if your losses are constantly higher than profits, you can say goodbye to all your deposit. To avoid this, try to close losing trades as soon as you notice a deviation in the movement of the course from your intended scenario.
Do not trade on schedule
Another reason for the loss of investments is considered the unbearable desire of the novice trader to get started as soon as possible. Usually, the analysis before the opening of the transaction, to put it mildly, superficial. It should be understood that the most important and most difficult stage of work is a deep and complete analysis, which takes a lot of time, sometimes even more than a day. Since the most important moment of trading is to determine the moment of opening and closing a transaction, you should define a clear action plan and follow it exactly until the order is closed. If you entered the market late or, conversely, early, you should not change orders without a reason – this very often leads to losses, to a greater degree unjustified.
Always stay cool
You need to be able to control yourself. The reason for about 80% of losses is the loss of self-control. This can be both a state of euphoria from the profit on one order, and several losing trades in a row. You should not try to earn more or recoup. This is not a casino for you, remember that here the main thing is cold calculation and fresh thoughts. It is better to relax a bit, relax, do something else. You have more than one day to trade as per Capital 88! You can always work on the bugs, having understood them, having rested, you can come back and earn.