Without wishing to be an expert on the foreign exchange market (Forex), I’d like to share with you a few tips that I think are good recommendations for making money by buying and selling currencies. It’s a little guide or tutorial that I think can work for you too!
It’s true that the foreign exchange market is a very complex market because of the way it works and the alternating upward and downward trends in the currencies used on the foreign exchange market. It’s important to understand that there are a lot of risks involved, which is why it’s so important to know and apply the right strategies.
I recommend that you learn as much as you can about how this market works. At this stage, we already have another publication on Forex, and we will soon be publishing another, much more comprehensive one, which you can find in the menu of this blog. It will be about making money safely by investing in the foreign exchange market.
Mira también:BECOME A SUCCESSFUL TRADER WITH OUR FOREX TRAININGRecommendations for making money in the Forex market
Here are the recommendations or, as we might call them, the rules for making money in the foreign exchange market (Forex). I hope I’m right and that you find them very useful:
1- Be disciplined
Remember that investing is not just about taking a position, but that there is also an objective reason for taking and holding that position. It is important to set a loss limit and a profit-taking point. If you are disciplined, you will suffer few losses in difficult market phases.
2- Keep your technical analysis very simple and be honest.
Follow support and resistance lines, Fibonacci retracements and reversal patterns. Studying more, getting more signals and watching more prices doesn’t necessarily produce better results. Recognise when you are wrong and learn from your mistakes. The market does not reward arrogant intellectuals. Even if you maintain your point of view, don’t forget that, in the end, the market is always right.
3- Adapt quickly to changes and follow trends.
The first piece of advice, if you are already a Forex trader, is to adapt quickly to changes, to trends that may be up or down. A good tip is not to get stuck on a single currency. An obvious tip: buy high and sell higher, or sell low and buy lower. Don’t forget this tip: you’re not a soothsayer who knows the upper and lower limits. Work with trends. If you know what the trends are, it makes sense to follow them.
4- Follow the best-defined trend.
It’s important not to waste precious time: don’t go crazy if the trend isn’t strong or clear enough, or if it’s in an indeterminate zone. Invest your time and money in defined trends and take as little risk as possible. Be patient and wait for the trend to change, and if it matches the technical analysis, wait a little longer before jumping in until you have clear confirmation.
5- Don’t set safety stops too tightly and respect your risk limits.
Take the time to determine your entry points. Be patient and leave room for the market. Set your stop-losses carefully. Even if a currency is trending upwards, there are often small fluctuations. It’s vital that you don’t get nervous, because nerves and the foreign exchange market don’t mix.
Mira también:Frequently Asked Questions for Forex BeginnersThe first stop loss is the cheapest. Don’t be tempted to stay in a position where you are losing too much. There may be times when everything is going well for you, but there is only one time when it isn’t, and that can cost you dearly. Stick to your plan and be disciplined.
6- Dissolve your positions in time
From a purely logical point of view, it is a fact that all investors buy when the uptrend is coming to an end and all sell when the downtrend is coming to an end. Conclusion: if everyone is on the same train, you have to be careful and be prepared to get off.
7- Accept losses, because they’re part of doing business.
In any business, it’s normal to lose money or simply your time and then win it back. In this case, if you have lost a lot of capital, a good tip would be to take some time to recover and then return to your forex trading business refreshed. 💎 Descarga todo aqui 💎
Mira también:What is a Forex PIP?
What is foreign exchange trading and how does it work?