Trading rules in the foreign exchange market. Forex trading rules
Action on the stock exchange is often better than prudence. Have you made a deal? Prudence denied you, but everything worked out?
Forex trading rules say: do not lose your guard, because the market is always dangerous.
He can ruin you at any moment. Catching not all movement, but part of it is also good. The following figures can be identified on the exchange: pennant, flag, head and shoulders etc. But this does not mean that graphic figures can always predict the future. In most cases they are useful, but not always. If you see a classic figure and enter the market with a huge lot, then it is not a fact that everything will end well. You can win once or twice with this approach, but soon you will definitely get caught. It's good if you don't put all your funds on this deal.
Forex trading rules say that the trader is obliged to maximize income.
You don't need to win 95% of $ 2 trades and lose $ 200 on multiple trades. There is a poker tactic on the exchange: I'm not sure - don't run. If you are sure, then take action! It's no secret that poker players are becoming good traders.
Forex trading rules teach us to be wrong.
We cannot know everything, but in order to win on the stock exchange, we don’t need to know everything. You are mistaken? Get out of the deal! Hope is a big hindrance in our life. Did something go wrong? Reduce your market presence. If a person comes to the exchange and actively trades, then he will most likely lose.
Transactions should be selective.
Don't do what's convenient. You will always lose if you are forced to trade with credit funds. Negative emotions will interfere with your speculation process. It is necessary to speculate on free money. You cannot trade with the last funds with which you wanted to pay utility bills or buy food.
Forex trading rules cannot be followed by gamblers.
These people do not need money, they go to the stock exchange for a dose of adrenaline. Gambling addicts are forced to risk more and more in order to trigger the release of hormones into the bloodstream. In the end, they all lose, they all feel sorry for them, and they don't need anything else. Searching for sensations on the stock exchange is a very expensive pleasure.
Keep calm. If you do not sleep well, then you have violated the rules of the trade. You may not have a winning business plan, so you feel uneasy there. Recognize and eliminate stress in the bud. Stress will interfere with your work if you don't get rid of it, or at least learn to control it.
Forex trading rules imply a number of basic recommendations, following which you can achieve maximum profit.
All of them can be easily used in real trading, and the result of their application will allow you not only to make a profit, but also to avoid possible losses.
These rules were developed by traders with many years of active work in the forex market and tested by hundreds of traders.
Trade big only with a leading broker
Basic rules of forex trading.
1. Make a rigorous plan before you start trading. Which you follow, it could be a profitable forex strategy, or just an action plan based on a changing situation.
2. Relax and do not be nervous, you probably noticed that usually trading on a demo account brings much better results than in real life, this is due to a change in the line of behavior. Imagine that you are trading with virtual money.
3. Always record the result and analyze it, which led to the receipt of profit or loss.
4. Be sure to place stop orders, and not only stop loss, but also take profit, these conditions are included in the main rules of forex trading.
5. Open orders to buy when you receive bad news, and to sell good news, and open positions when the market reaches the last reaction point.
6. Constantly learn from the experience of other traders and analyze archived materials on market movements.
7. Trade with the trend, it will always lead to success, this way is less risky than trading against the trend.
8. Remember that the main thing to take into account when forecasting is not the indicators of various forex indicators, but the possible reaction of the bulk of traders, it is this that will be the main factor affecting the price.
9. Do not trade for the entire deposit, differentiate deals, always leave yourself a chance to win back.
10. Do not open a huge number of orders, this complicates your work and deprives you of the opportunity to quickly close all positions.
11. A purchase is made in an uptrend, a sale in a downtrend, remember that you should not open a deal immediately, as soon as a trend has emerged, wait for its confirmation.
12. It is not necessary to memorize all the teaching materials on trading in the foreign exchange market, choose your niche and achieve perfection in it. Only then can you most likely guess the direction of the trend.
Forex rules, if strictly followed, enable even a novice trader to work in the market with a fairly good result and make a profit with a modest investment of his own funds.
Forex trading rules imply a number of basic recommendations, following which you can achieve maximum profit.
All of them can be easily used in real trading, and the result of their application will allow you not only to make a profit, but also to avoid possible losses.
These rules were developed by traders with many years of active work in the forex market and tested by hundreds of traders.
Trade big only with a leading broker
Basic rules of forex trading.
1. Make a rigorous plan before you start trading. Which you follow, it could be a profitable forex strategy, or just an action plan based on a changing situation.
2. Relax and do not be nervous, you probably noticed that usually trading on a demo account brings much better results than in real life, this is due to a change in the line of behavior. Imagine that you are trading with virtual money.
3. Always record the result and analyze it, which led to the receipt of profit or loss.
4. Be sure to place stop orders, and not only stop loss, but also take profit, these conditions are included in the main rules of forex trading.
5. Open orders to buy when you receive bad news, and to sell good news, and open positions when the market reaches the last reaction point.
6. Constantly learn from the experience of other traders and analyze archived materials on market movements.
7. Trade with the trend, it will always lead to success, this way is less risky than trading against the trend.
8. Remember that the main thing to take into account when forecasting is not the indicators of various forex indicators, but the possible reaction of the bulk of traders, it is this that will be the main factor affecting the price.
9. Do not trade for the entire deposit, differentiate deals, always leave yourself a chance to win back.
10. Do not open a huge number of orders, this complicates your work and deprives you of the opportunity to quickly close all positions.
11. A purchase is made in an uptrend, a sale in a downtrend, remember that you should not open a deal immediately, as soon as a trend has emerged, wait for its confirmation.
12. It is not necessary to memorize all the teaching materials on trading in the foreign exchange market, choose your niche and achieve perfection in it. Only then can you most likely guess the direction of the trend.
Forex rules, if strictly followed, enable even a novice trader to work in the market with a fairly good result and make a profit with a modest investment of his own funds.
12:42 29.10.2013
Every novice trader is concerned about how increase your deposit and at the same time minimize the risk. The key to success, as you know, is in proper risk management and psychology, while the analytical skill of a trader is only about 15-20% of success. In this article, we would like to draw your attention to several strategic nuances that will help you make money on the Forex exchange.
1. The opening of any position must be preceded by careful preparation, and there should be no exceptions. You should explain to yourself in a week and in a month what you were guided by when opening a deal. At the same time, you need to start with a minimum volume, and then increase it with a favorable market direction.
2. There are always big players on the market, who buy at the bottom and sell at the top. These participants should become “beacons” for the private trader, for which one should strive to buy and sell on bounces from important lows and highs.
3. The golden rule of trading is to let profits rise. If the market is moving in your direction, then you should use moving stop-losses. Naturally, you need to be careful not to close the deal ahead of time. You need to set a stop loss either in the area of \u200b\u200bhighs and lows, or at 10-15% of the current profit level. At the same time, it is also necessary to constantly adjust the Take Profit upward.
4. Successful trading in the market means protecting your deposit. Despite the fact that even the basic training course in stock trading includes the rules for placing Stop Loss and Take Profit orders, traders always ignore these tips, hoping to close a trade manually. In this case, in no case should you add volume to a losing position. Each additional purchase should be more and more expensive, and the sale should be cheaper. If the market is going in the wrong direction, positions should be closed.
5. It is best to buy at a clear support level and sell at an obvious resistance. There are many participants in the market, and there is a great chance that they will use similar rules, forming a strong directional movement.
6. If you trade in the medium and long term, you should review all open positions on a daily basis for compliance with your trading system. If you buy, there should be further signals for growth (as well as good news background), if you sell, there should be a downtrend in the market.
7. Also a well-known rule, but for some reason difficult to fulfill: trade in the direction of the current trend. In fact, it is similar to driving in the opposite lane. A private trader has three options: buy in a bull market, sell in a bear market, or stand aside, regretting the lost profit, but preserving his capital. As a rule, getting a loss is more painful than a lost profit anyway.
8. Forex trading is an exclusively independent activity. You should not base your trading on the advice of friends or even professional analysts. All "advisors" are not responsible for their predictions; you will have to pay for their mistakes. The only alternative to independent trading is trust management, but in this case, the manager must be really qualified, and most importantly, it must be a person you know and trust.
Forex strategies can be as varied as the traders who use them. When a trader comes to the Forex market, he can develop a trading strategy that will best suit his needs, personality characteristics and preferences.
Most beginner Forex trader courses include general information about the Forex market, but they are often not deep enough to teach beginner traders how to avoid trading mistakes. This article will give beginners five golden rules for currency trading that must be mastered before starting to open positions in the Forex market.
The five golden rules of Forex trading listed below will help guide the Forex trader in the right direction. They contain the wisdom of experienced traders gained over the years in the foreign exchange market, which you can use to enhance your trading success.
- Rule number one is to always use a stop loss order to minimize potential losses. Reducing losses and maximizing potential profits by limiting the amount of money at risk has always been a major factor for every successful Forex trader. A stop loss order is placed below the buy open price and above the sell open price. During trading, it can move up for long positions (buy) or down for short positions (sell) a sell order. Never move a stop loss order towards an increase in loss.
- Rule number two - When opening a position, you must have a target to exit the trade. One of the wise sayings of traders is: "Let your profits grow." However, there is no need to go to extremes and endlessly push back the take-profit order, it is often advisable to fix the profit before it turns into a loss, give yourself time to analyze the market and, if the trend resumes, reopen the position. Placing stop loss and take profit orders when you open a position is a great strategy, and this practice can save you time, money and frustration.
- Rule number three - do your homework. Applying some kind of analytical discipline to Forex research can provide the trader with valuable information on when to enter and exit a trade. Forex market analysis is usually divided into technical and fundamental. Technical analysis involves studying past price patterns on price charts in order to identify certain trends and predict future price movements. Fundamental analysis involves studying changes in the economic and political situation in order to determine how a Forex trader should position himself in relation to a particular currency pair.
- Forex Trading Rule Number Four - Know When To Stay Out Of The Market. The trading process involves a certain adrenaline rush, which can be addictive and lead to one of the most destructive habits for a Forex trader: overactiveness. Overactiveness leads to the fact that a trader opens positions not so much on the basis of analysis and a balanced decision, but out of the need to constantly be in the market. And this, in turn, leads to a catastrophic number of unprofitable transactions and, as a result, to bankruptcy.
- Rule number five - be disciplined and put your emotions aside. Having a plan and implementing your own trading strategy will help establish the discipline that a Forex trader needs like air. Disciplined, meticulous adherence to a trading plan relieves the trader of emotional reactions when trading and gives him a solid foundation to limit losses and build profits.
Many online brokers offer demo accounts where you can practice your strategies in real market conditions without risking your money. Here you can read how to open a demo account.
- The Central Bank told about the new tariffs for the civil liability insurance What's new for the civil liability insurance from June 1
- What is sleep and who uses it What does sleep mean income
- Debit cards "Sberbank of Russia": what does this concept mean, how to use, an overview of the offered by the bank
- Simplified taxation system What does it mean in accounting usn