Trading on currency markets can be emotional and stressful, which requires a high degree of self control. This is not a story how to quickly become rich. Learning trading requires practice, patience and it takes time to win the basics.
People without self control and people who make hasty decisions will quickly find themselves on the negative side. Those who do not follow the rules of investment principles and those who allows emotions prevail when deciding will quickly lose control over the investment. Those who follow the rules of investment principles, will benefit the most.
100% earnings in a few days would not surprise anyone; in fact, even a 1000% profit would not be a surprise for experienced trader. Trading with currencies became one of the best investment opportunities. As with all operations, including foreign exchange markets have their own characteristics and their own golden rules.
We represent you 10 rules for trading on the currency markets, which should be taken into account by anyone who intends to engage in trading and wants to be successful in this.
- The market is constantly changing and it is sometimes difficult to understand and therefore insist on this business, so invest in education of currency trading.
- Many beginners are trading in both directions, regardless of the trend. Although it can be profitable to trade such way has trading toward trend higher probability of success.
- At the beginning use demo account to lear how to trade. When using a demo account you will be able to verify strategies and be emotionally prepared to trade on live account. However you should treat demo account as a real account. Otherwise you will not learn anything.
- The are many companies that make money by selling programs that are supposed to predict the future movement of the currency pairs. If all these programs will actually worked, companies will never disclosed them to public.
- Trading is stressful work and on the way to the top it has many obstacles. Emotional trading can force you to open a position to early or too late and you consequently suffer a loss due to incorrect time of purchase. Control your emotions, stay calm and faces on long term goals.
- Just because foreign exchange markets are open 24 hours a day this not mean that you have to be active all the time. If you are unsure do not only trade, but also analyze the market and use the knowledge in the future.
- With trading emotional involvement is very high, so you must have trading strategy. It includes a set of rules for trading which must be obeyed in order to protect yourself.
- Avoid strategies that are too complex and offer many different techniques. They can distort your judgement and you can consequently miss many good opportunities for trading.
- Because of leverage, trading in currency markets can be very profitable, but also very risky. Beginners should never risk more than 2% of the cover money on each open position. On long term this means higher chance that you will make a profit and at the same time reduce the possibility of loss.
- Get used to review and analyze all the good and bad positions. This will give you an insight anti what to use in the future and what not.