Why are there hundreds of millions of traders and investors who trade on the Forex market each day and how do these people make money? This 2-part report provides clear, simple and essential information on how to make money with Quotex login trading.
Don’t trade currencies but pair – To be successful in forex trading, you need to have a good understanding of both. To be successful in forex, you must know both currencies’ impact on each other and the relationship between them.
Power is Knowledge – If you’re new to trading forex online it’s important that you know the basics.
World news and current events play a major role in influencing forex. A statement from the ECB on European Interest Rates, which is usually accompanied by a flurry or activity will be released. Most traders react violently when such information is released and they close their trades. This means that many new traders miss great opportunities to make money by not waiting for the market to calm down. In the forex market, the real potential is found in volatility and not tranquility.
Lack of ambition in trading – Many traders are hesitant to place orders that will result in small gains. This approach will not work because even if it is profitable on the short-term (if lucky), in order to make money long term, you need to make up the difference between bid and ask prices.
Excessive caution in trading – A trader who uses a retail Forex broker to place tight stop losses is in trouble. In the same way that we have stated, it is important to allow a position to be able to perform. When you fail to place reasonable stop-losses that permit your trades to be profitable, you are always going undercutting your own price and losing some of your initial deposit.
Independence _ If forex trading is your first experience, either you trade on your own or you have an agent trade for you. So far, so good. If you are doing either of two things, your chances of losing increase exponentially.
Intrude on what your agent is doing for you (his strategy might take some time to mature);
You should not ask for advice from too many people. It will only lead to more losses. Then, you can analyze the outcome by yourself.
Very small margins Margin trades are one of the most important advantages of trading forex, as they allow you to trade larger amounts that your total deposit. But it is also dangerous for newbie traders. The greed factor can make them lose their money. Your leverage should increase in proportion to your level of experience and your trading success.
Trading strategy isn’t the goal – Its not about making money. You can think of a strategy as your road map to success. You will need to detail your strategy, such as the currency pairs you intend to use and how you manage risks. A strategy is essential to avoid becoming one of 90 per cent of all new traders, who are losing money.
Trading Overnight – The advantage of professional traders is that they have the ability to move and hedge positions when trade volumes are low. Don’t trade during the off-peak trading hours.
Up/Down is the only option – A market on its upward trajectory is a market on its upward trajectory. When the markets are going down, they’re going down. That’s it. No system can predict the future accurately. There are many that analyse previous trends. When you realize that market movements are all there is, then it’s hard to put blame anywhere else.
Trade around news events – Many of the biggest market moves happen during the times when news is released. When news breaks, trading volume and moves are high. It is at this time that the large players are adjusting their positions. Prices change and there’s a significant currency flow.