To be successful in forex trading, you can follow the following tips, which are compiled based on personal experience doing forex trading based on prices prevailing in the market when the transaction takes place to look for profits based on Forex price movements in the market.
By following the market price movements, you have the opportunity to profit, or experience risk (loss) in accordance with changes in prices that occur.
For example, you buy 1 lot of EUR / USD at 1.2200 and sell it when the price goes up to 1.2300.
The difference from this price increase becomes your profit. Vice versa if prices move in different directions.
1 Understanding Forex Trading
“Do not know, then do not love”. This saying is very relevant in forex trading.
Because if you don’t really understand how forex works, how can a trader be successful and make a profit.
What is trading?
Trading is a sale-purchase transaction, in which a product can transfer ownership by paying an amount of money according to the price set.
In forex trading, you trade (sell / buy) a number of forex based on prices prevailing in the market when the transaction takes place.
For this reason, before plunging into Forex transactions, you are strongly advised to take educational training courses on how to trade. Understand correctly and fully the ins and outs of Forex trading before starting.
Every best forex broker has offline and online education classes. Make the most of the class.
Join the forex trader community that is widely available online. Learning from other people who have eaten sour salt is definitely beneficial compared to just learning by ourselves.
2 Do Forex Trading Alone
This incident was experienced by my friend who recently lost significant funds due to losing forex trading. Initially, he blamed the broker where he made the transaction.
However, after I went deeper, he just admitted that the transaction was not he who carried out, but he left it to someone else to manage. The reason, because he did not have much time.
This is very, very need to be avoided by traders, namely handing over forex transactions to others to run. Because managing one’s own money with other people’s money must be different from the way it is managed and prudent.
In addition, if transactions are carried out by others, important investment learning processes cannot be learned, but are felt by others. Meanwhile, the lesson is very important to hone expertise in investing.
3 Choosing the Right Forex Brokers
Brokers in forex trading are very important for several reasons:
First , the broker provides good class education, which will definitely help the trader. This education is not only in the form of offline classes but also online classes.
For example, one broker, provides a demo account, where you will be given a number of virtual money that can be traded in real-time on the real trading market.
Second , the trading costs charged by the broker are significant in determining the size of the profit because these costs (in the form of spreads and commissions) must be paid by the trader to the broker regardless of the profit or loss transaction.
Third , call center services provided by brokers are ready to serve 24 hours a day 7 days a week. Due to the nature of forex trading 24 hours a day, support from brokers to investors is very important to ensure transactions can be carried out without a hitch.
Fourth , have a good trading platform that can be used by traders optimally.
4 Don’t Panic and Understand Money Management
To be successful in forex trading, you not only need a solid strategy, but also Money Management (MM).
What is Money Management and the right example of Money Management?
MM covers how many lots in each trading position, the distance between the entry price (open position) and Stop Loss (SL) and profit target, as well as the maximum number of trading positions that will be opened at one time.
This MM talks about how much loss or loss you are prepared to accept at any time. After knowing the losses that can be received, you determine the transaction plan to be able to remain in the corridor of acceptable losses.
Of course with MM, the profit potential will be smaller. But, for the sake of controlled risk management, MM must be implemented so that investments in forex can be carried out sustainably.
5 Can Manage Loss Trading Losses
The potential for high profit profits in forex trading also carries the risk of loss. High Risk High Return.
Therefore, risk management is very important in forex trading. You must be prepared to accept losses if this comes.
In addition to good and well-organized Money Management, mental readiness is also very important in dealing with trading losses. Because with a calm mentality, you can keep your head cool and take the right steps when shocks or crashes come on the market.
One important thing is diversification in investment, including forex trading. Don’t put all your money in a forex investment because if it is done it is very very dangerous.