3 Forex Trading Secrets Brokers Won't Tell You

3 Forex Trading Secrets Brokers Won’t Tell You

When it comes to Forex trading, there are a few things you should be aware of if you want to be successful. You’ll need to know the basics, such as which tool to use, how to interpret charts, and which assets are the best to trade.

All of these are things that your broker can assist you with. What about the information you require that your broker refuses to provide?

Here are three Forex trading secrets that brokers don’t want you to know about.

The first : Know yourself.

Knowing my particular trading approach was one of the most significant lessons I gained. It took me a long time to realize that.

Was I a day trader or a swing trader? Buying at 25 and selling at 26, buying at 30 and selling at 31, and performing hundreds of trades each day with a minor profit or loss? Was I a short-term trader or a medium-term trader? Someone who would buy at 1.1400 and sell at 1.1600, sell at 1.1500 and buy back at 1.1200, and execute deals far less frequently but with significantly larger gains or losses?

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Is it possible that I was a long-term trader? Who wants to buy in January and sell in June? Some would argue that this person is more of an investor than a trader.

Many retail traders are unsure of who they are or what their trading style and tolerance should be.

The second : forex trading tip is to be disciplined.

This is something I’m sure you’ve seen in every trading book you’ve ever read. Discipline, in my opinion, is deciding on an exit strategy before entering a trade. You should enter your stop loss and stop profit orders as soon as you open a position. You will not be tempted to second-guess yourself if you do so.

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Too many traders I’ve seen take a position, watch it advance in their favor toward their profit target, but never close it. ‘This can go further; I don’t want to collect my profit now,’ the un-discipline will argue. Once the trade reverses, they will be hesitant to terminate it until it returns to the highs, at which point profits will turn into losses.

On the trading floor, there’s an old adage that ‘your first loss is your best loss.’ Yes, there are instances when waiting is the best option, but if you do your study and plan an exit strategy for both earnings and losses, you will be better off in the long run.

The third : Don’t Get Too High, Don’t Get Too Low

On a good day, I’ve seen many traders convince themselves that they are the best traders on the globe, only to flip around on a poor day and claim that they are the worst trader ever. You must accept that there will be good days and terrible days, and that specific days do not indicate your trading talents.

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Major League Baseball’s greatest batters strike out 70% of the time. The goal isn’t to be correct; it’s to generate money. Many traders fall into the trap of increasing trading size and risk tolerance when they are on a hot run, which is OK as long as they reduce risk tolerance once the hot streak ends; however, many traders do not.

Include the three basic Forex trading secrets above if you want to have a long and prosperous relationship with the markets.

 

 

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