InstaForex Nigeria, Basic technical skills on how to constantly make money from the Forex Market is displayed here..
1. Plan ahead – Make your work plan in advance; Know the position size, the StopLoss Points and the TakeProfit Points (SL and TP) before you start to trade.
2. One or two pair at a time; It is better to focus on one pair than try to “conquer” many pairs.
3. The trend is your friend; Trade in correlation with the trend: Do not buy in a downward trend . and do not sell in an upward trend.
4. Cut your losses – While they are still small; Once you lose, do not keep on buying in the same direction, and hope the market will get your investment back.
5. Stop Loss Strategy; Never enter a position without giving a Stop Loss order. It is your last line of defence
6. Two indicators or more; Do not enter a position based on only one indicator. Look for other indicators like Relative Stregnth Index (RSI) that supports your
7. Always know that the market breaks the Resistance Level when the candlestick’s closing rate is above the resistance level.
8. Exit rule startegy is get out of a long position just as it takes off like a rocket and get out of a short just before the price drops like a stone
9. To be a successful trader is just to find the major support and resistance lines and trade from there with small stop losses
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Forex Trading is investment and investments worldwide involves the application of rules..
1. EARLIER ADVERT AND MISCONCEPTIONS BY INTERNET MARKETERS;
In the early nineties and even till this day, a lot of internet marketers instead of realistically marketing Forex trading has been in the forefronts of making bogus and unrealistic claims thereby misleading the public.
2. LACK OF ADEQUATE KNOWLEDGE OR TRAINING;
Most prospective clients and client alike were found to have plunged into Forex trading, based on the information that one could double his account over night.
Forex trading is knowledge-based and requires skill. likewise any trade or career or business that requires skill requires thorough training and re-training. At InstaForex Nigeria Office we always emphasise on proper and adequate knowledge hence we run training on daily basis.
It is said that “one cannot value any right decision with an unstable mind” Forex trading is investment and investment are all about decision making and decision taking. These and many more especially how to manage and avoid emotional trading are well taught to our numerous clients and trainees.
Emotional trading always lead traders to revenge-trading. This should be avoided at all cost. Most traders after a string of losses attempt to increase their volume/lot sizes hoping to recoup their losses by so doing they risk their account.
We emphasise to our clients that on no account should they revenge trade instead should reduce their/lot sizes in that situation.
4. INABILITY TO SET STOP LOSS & TAKE PROFIT;
It has been found that most traders/clients do not know how to set take profit (TP)and stop loss(SL) accordingly.
InstaForex Nigeria Ofice much emphasis are laid & trainees are thoroughly taught and reminded of the importance of stop loss(SL) and take profit(TP).for more on how to set stop loss and take profit, log on to www.instaforex.com.ng and go to our blog section and locate ‘how to set stop loss and take profit’ and many more.
It is said that greed is the bane of most traders. many come to Forex trading with a very wrong mind-set; Seeing trading as betting which it is not. with wrong mind-set and in order to make a’kill’ of the market they forget that Forex trading is investment and investments worldwide involves the application of with rules.
We strongly advice against this against this vice, and to wait patiently for your trade and manage their risks devoid of greed accordingly.
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Forex Trading has the advantage of being more liquid than any other market, including the Futures Market. With the average daily volume in the Forex Market reaching close to 5 Trillion and the daily volume in the Futures Market reaching 50 Billion, there is no comparison. The liquidity in Foreign Currency Trading (Forex) surpasses that in the Futures Market. This goes to show that Forex is highly lucrative than any other market in the world including the Futures Market.
24 Hour Trading:
Another advantage the Forex Currency Trading System (Forex) has compared to Futures is the fact that you can trade 24 hours a day and five days a week if you want. The Forex Market is opens longer than any other market in the world. If a person is serious about making money in the Forex market event happening around the world can be a good advantage for any Forex trader. You won’t have to wait for a market to open in the morning. You can trade from your computer instantaneously.
Here are the major currencies that you can choose from to trade:
• US Dollar (USD)
• Japanese Yen (JPY)
• British Pound (GBP)
• Swiss Franc (CHF)
• European Union Euro (EUR)
• Australian Dollar (AUD)
• New Zealand Dollar (NZD)
• Canadian Dollar (CAD)
Here are the major Forex winning tips:
1)Ensure that trades are taken after observing resistance or support level
i) If you have missed the point or were not there ,move to another currency pair.
ii) Do not place a trade because are in the trading room.
iii) Ensure that every condition/parameters are right for you take a trade.
iv) Do not yield to external interference/influence.
v) Do not yield/trade under pressure.
vi) Remember that “tomorrow is another day”.
2) Always maintain a business mindset and not a gambling mindset
i) Gambling mindset would make you to negate the rules.
ii) Forex is investment and investment all over the world is guided by rules
iii) After a string of losses,please give yourself a break.
(a) it doesn’t mean that your trading system or indicators are wrong
(b) it doesn’t mean that your decision to buy or sell was wrong
(c) the market might be in one of its random movements either due to news or erratic movement
iv) The same trading system or indicator could cumulatively be profitable over a period of time,either monthly or bi-monthly.
3) Do not rue over past losses or trades that you didn’t take
i) Profitable opportunities are always there.
ii) Remember that forex will always outlive you.
iii) Inexperienced traders are fond of speaking in the past,instead of focusing on the present.
iv) Remember to always recollect the rules, observe it and apply it accordingly.
NB: Always note that InstaForex offers traders the best trading platform in the market right now.
By Paul Odibeli