Whilst nothing in life is guaranteed, it is always wise to take all the steps possible to ensure a positive outcome the majority of the time.
With that in mind, listed below are five tips that will help you achieve financial success when trading Forex:
1. Know when to cut your losses
Regardless of the amount of trading experience you have or money you’ve made, everyone makes mistakes. To succeed in trading it is imperative that you recognise your mistake and shut the appropriate trade down to minimise the damage. It’s interesting to note that male traders struggle with the concept of calling it quits on a questionable trade as they believe doing so is admitting defeat VS women who are willing to shut the trade down before it wreaks damage. It is this risk evaluation and reaction that often makes women better investors!
2. Trading is not investing
The main difference between trading and investing is time. Investors hold their stock for a longer time periods (from months to years) whereas traders jump in and out of trades within quick time frames (from minutes or hours to days).
Each market’s participants also rely on different indicators to evaluate where to place their money. Investors rely mostly on fundamental analysis whereas traders rely more on technical analysis.
3. Stick to your plan
If you have placed a trade based on solid research and are confident in your prediction, don’t let yourself be thrown by small negative movements. Fluctuations are to be expected and unless something devastating or unexpected happens, don’t give up on your chosen trade.
4. Keep calm under pressure
Calm confidence and discipline are essential when you are a trader. As trading is often fast-paced and there is often a large amount of money at stake, it is crucial that you are able to remain focused and clear when there is pressure.
You also need discipline which will enable you to listen to advice and instructions, learn from your mistakes and hone your skills over a period of time, so you can make the most of your trading potential.
5. Knowledge is power
As a trader information is your most valuable asset. Getting to know and understand your markets, their trends and cycles, jargon, statistics and more will make you a more astute and successful trader who can take full advantage of more trading opportunities.
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