How to really make money in forex PART 2

How to really make money in forex PART 2

As far as I'm concern, a real opportunity to make money in forex trading is the trading direction. Most often than not, the market moves in a certain direction. A trader should be able to detect and monitor the market direction or trend. This may be a short-term trend or long-term trend. A careful study of the table especially higher time frame chart will reveal that this trend. It should be noted that the trend of a smaller time frame chart can only be a consolidation of the higher time frame chart. So, it is advisable to study the market from a holistic point of view.

As much as making the trend your friend is valuable, so is entering and exiting the market. Secret of forex trading is a thriving market entry at the optimum point. The optimal price point or where the trader can trade with barest minimum risk, while maximizing profit promise. A good trader would have entered the market to make some pips, without taking into account the risks at stake. A good currency trader would never play around with his / her resources. He would only trade as the risk level is very low and high profit margin. I would suggest a risk-reward ratio of at least 1:03.

However, it is equally crucial for the trader to know when the party is over and exit the market. A trader should have a specific goal in mind as open trading and this should be placed on a platform for trading. Many times, marketers can not reach your goal; useful trader should be able to read the charts to anticipate this and near the position. I have seen very promising trade goes bad at the end of the day. It is necessary for traders to manage their trades using trailing stop losses to obscure some of the benefits that were achieved. This desire to help you rank in some pips, if the market goes critical of your trade. This is why it lags in the use of stop loss is inevitable.

Having the correct psychology is dominant in currency trading. You should appreciate the fact that absolutely no one can influence the market. So you need to develop a healthy mind set that you have done its part by applying its strategy and the golden rule and it is left for the market to play out. No matter how skilled your trading strategy is, you never can with the right at any time. There is some bad trades. As a matter of fact, I expect - that's why can not trade without stop loss. This will help you control your emotions. Is the most valuable thing is to develop a working strategy for trade and adopt sound money management. You will make a positive win trading the foreign exchange market.

In synopsis, the basic principle of our commercial success in forexseed is revealed in this article. With our trading strategy, we just trade in the right direction at the right price with the right to stop losses and target combined with sound money management plan. If you can apply this principle, will be joined by 5% of successful Forex trader.