May 6, 2023
What are the reasons that hundreds of thousands of online investors and traders trade www.quotexcorretora.com/ every day? And how can they earn money by doing so? This report is divided into two parts that clearly detail the essentials of forex trading.
Knowlege is power – When you first start out in forex trading, you must understand the fundamentals of the market to maximize your returns.
News and global events have the biggest impact on forex. As an example, if the ECB releases a statement on European interest rates that will usually cause a flurry in activity. Many newcomers close positions when they hear such a news and miss the opportunity to trade. It is the volatility of the market that holds the potential for the forex.
Insane trading – Some new traders place extremely tight orders so that they can take small profits. The approach is unsustainable because you could be lucky and make a profit in the near future, but you will lose money over the long term.
Trading too cautiously – The trader with tight stop-loss limits at a retail forex brokerage is doomed. We have already stated that you must allow your trade to show its potential. Stop losses should be reasonable and allow for your position to perform. Otherwise, you’ll always undercut yourself with each trade.
Independence – If forex is new to you, then you can either choose to invest your money yourself or hire a broker to do so. So far, so good. You will be at greater risk of losing if either or both of these things are done:
You should not interfere in what your broker does on your behalf. His strategy could take a while to develop.
Don’t seek out advice from many different sources. Multiple inputs will lead to multiple losses. Consider a position and ride on it, before analyzing the result – by yourself.
Tight margins – Trading forex with a small margin is one of its biggest benefits, as you can trade far more than what your initial deposit was. This can, however, be harmful to new traders because it may appeal to their greed. Many forex traders are destroyed by this factor. It is best to adjust your leverage in accordance with your success and experience.
No Strategy – To make money, you don’t need a strategy. It is your plan for making money. The strategy outlines your approach, the currencies that you plan to trade and risk management. If you don’t have a strategy in place, then you could become part of the 90 percent of new traders who end up losing their money.
Trading at Off-Peak Times – FX, options, and hedge fund traders enjoy a distinct advantage during these hours (2200 CET – 1000 CET), as they are able to hedge and adjust their trades when the volume of trading is low (minimizing their risks). It’s best to avoid trading at off-peak times.
Only up/down is possible – Markets are always on the rise. If the market falls, it will fall. That’s it. It is true that there are systems to analyse trends in the past but they cannot accurately predict what will happen next. If you admit to yourself at any given time that everything is just a market movement, it will be hard for you to find anyone to blame.
Trading on news: Markets move most dramatically around the time of news. There is a high volume of trades and significant moves, so there’s no better time than the moment news is published. When the major players change their positions, prices will rise and cause a currency surge.