Things you need to remember in forex trading

After you have deposited the initial margin for your trading account, the most important thing to remember is that the money you deposit is at risk. Therefore, the money into your capital should not be money for living expenses or money to pay bills etc. You should be able to assume that the capital is holiday money that you may spend. If you have this attitude psychologically will prepare you to be able to accept small losses, which is the key to managing your risk. By focusing on trading and being able to accept small losses, you will not continue to calculate your equity so you will be much more successful. Meanwhile, don’t hesitate to hire the recommended ic markets forex broker if you feel like you need to.

Secondly, only use a maximum 2% risk of your total funds on each transaction. In other words, if you have $ 10,000 in a trading account, your maximum loss is $ 200 only. If you use a shorter time frame or reduce the leverage, the 2% risk will go even further.

Build positive feedback.

A positive feedback is made from the results of the transaction in accordance with your trading plan. If you have a trading plan and run it well, it will form a positive feedback pattern. Success will give birth to success that will eventually generate confidence – especially if the transaction is profit. Even when you lose even if you do according to the trading plan, will build positive feedback as well.

Analyze at the weekend.

It is a good thing if you want to prepare everything first. On weekends, when the market closes, you can study weekly charts to find the pattern or news affecting your transactions. This is a reflexivity of the results of your transactions in a week, and this will help you build a strategy for the coming week. When not in market pressure, maybe you will be able to devise the best plan for your transaction.s

Richard T. Starkey

Author: Richard T. Starkey

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