Second Part of My Forex Trading Tips

Tiny margins - profit margin is one of the biggest advantages in trading forex as it allows much greater quantities than its total commercial deposits . However, it can also be dangerous to novice traders as it can appeal to the greed factor that destroys many forex traders . The best guide is to increase the balance according to their experience and success .

No strategy - The aim of making money is not a trading strategy . A strategy is your map for how you will make money. The details of its strategy to be the approach to take, which currencies will operate and how it will manage risk. Without a strategy , you can become one of the 90 % of new traders that lose their money.

Trading Hours Off- Peak - FX Professional traders , option traders , and hedge funds have a huge advantage over small retail traders off -peak hours ( between 2200 CET and 1000 CET ) as they can cover their positions and move them when there are very small trade volume is going through (which means that the risk is lower). The best advice for trading during peak hours is simple - no.

The only way is up / down - When the market is on its way , the market is on its way . When the market is going down , the market is down . That's it. There are many systems which analyze past trends , but none that can accurately predict the future. But if you acknowledge to yourself that all that happens at all times is that the market simply moves , you will be surprised how hard it is to blame anyone else .

Trade on the news - Most of the really big market moves occur when news . Trading volume is high and the moves are significant , which means that there is no better time to trade than when news is released . This is when the big players adjust their positions and prices change resulting in a serious currency flow .

Exiting Trades - If you place a trade and not working for you, leave. Do not aggravate your mistake by staying at home and hoping for change. If you're in a winning trade , do not talk yourself out of the position because you're bored or want to relieve stress , stress is a natural part of trading , get used to it .

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