The perfect Forex Deals As Per the Requirement for You
There is a certain mathematical logic to this reasoning, and yet the trader who goes down on average makes two mistakes: he expects an unfavorable situation to become favorable again. It also thinks that a price level that has been reached in the past will inevitably be reached again, soon.
Put yourself in the shoes of those who bought EUR / USD at 1.60 thinking (as many then) that the next target would be at 1.80 after 2.00. Did they average it to 1.55? Now look at a EUR / USD curve.
The 1.60 level can be reached in the future, but when? Will dealers have enough margin to support such losses? As a part of the bitcoin profit review instructions you can now have the best options now.
Average your high profits
After a period of loss, and with all the stress it can generate, some will reduce their profit very early, however small.
As soon as the balance is positive, the transaction will be closed.
Then, we see novice traders let their losses reach € 800 and, as soon as the position becomes a € 5 winner, they close the deal, relieved that they are not in a negative situation. We must try to win at least 3 to 2 per risk.
Take Spread into account
- We can think that 1 pip more or less in the spread will not change anything.
- This can be true in one or two transactions in Forex trading.
- But if you spend two transactions a day in a year, the difference will be 520 pips, or about 26%, if you’re using 5: 1 leverage.
- A strategy can therefore generate profits with a spread of 1.5, but be a loser with a spread of 2.5.
- Do not neglect any details.
Kill your impatience
When negotiating, it is sometimes necessary to be patient, to seek the right opportunity, to hope that market conditions are favorable to the strategy applied and so on.
However, beginners in the Forex market often make the mistake of taking a position without respecting the plans or strategies previously put in place, because it is more exciting to be in the market than to follow its evolution.
Be strict with yourself about your trading plan. And never go overboard. Greed and impatience can be the end of you!
There are NO miracle methods
Unfortunately, there is no miraculous or foolproof method in Forex trading.Many beginners in Forex trading enter the market looking for a way to make profits easily, at home and effortlessly.
While it is obviously possible to perform very well in the foreign exchange market, there is no easy way to make money in the financial markets, in the same way that the goose that lays the golden egg “does not exist”. Being successful in the forex market (or anywhere, anything) takes time, patience, perseverance, hard work. Do not believe those who sell you cheap miracles, it will become expensive.