Forex Trading is like driving. Without rear view mirror, signal lights, head lights and all that stuff on a car, will eventually lead to an accident. Same goes to these 5 tips that I am going to share. Without it to be a constant reminder for you when trading, will eventually leads to margin call. I hope this article will help you in anyway possible.
Heard The Phrase, K. I. S. S? - Keep it simple, stupid. When trading Forex, the last thing you want is a complicated analysis of the market. You want to keep it as simple as you possibly can. This applies to you trading strategy when using indicators. Too much info may harm your mental health. So, develop a really simple strategy that works for you. Don't make it too difficult for you.
Make Sure Every Trade Is Worth Trading - Before a trade, always calculate you risk/reward ratio. Calculate how much you can gain from this trade and how much you can lose. If the rewards are greater, then by all means enter. But if its not, look for another opportunity.
Let It Run Like Forrest - Your profit, that is. It is a good thing to let your profits run, while moving your stop loss according to the trend. Also better and if you are confident with the trend, you may open up another trade to maximize you profits. Be sure to move you stop loss; you do not want to give back your profit now, would you?
Cut it like a Bad Weed - I'm talking about your loss. It is better to keep you losing trades as short as you can. Don't move your stop loss either. Like I said in my previous article, respect your stop loss.
Use an Automated Trading System - Yup, that's right. You are better off using a proven automated trading system. Using one of these systems will have a better impact on your Forex earnings, some systems claims and have proven to make $100,000 a year. On a plus side, this system will make you money 24/7, without human intervention. This is what most people need in order to generate money in forex.
In fact, there are many elite traders that are starting to use an automated trading system and realize a lot of benefits using it. Most elite traders create their own automated forex trading system . While for us, we may not have the expertise of creating an automated trading system, but there are systems that are available for us to use. To find out the most consistent automated trading system, just click here .