“You have to do a very few things right in your life so long as you don’t do too many things wrong.” – Warren Buffet.
A massive 5.3 trillion US dollars are transacted every day in the forex market. Just as the chance of reaping huge profits is possible from this highly volatile market, similarly incurring a huge loss is also probable. Also, opportunity will always not come knocking on the door, and you have to keep watch almost 24 hours to grab the right moment to carry out your transactions. Humanly, a 24-hour watch is not possible, but you can certainly employ a software. This is where the Forex MetaTrader comes in.
The forex trading market is not only about buying and selling of currencies. It involves proper analysis of the market along with accurate predictions and judgement. Just like any financial market, forex also follows certain trends and trade should be carried out keeping these technicalities in mind.
All investors are prone to make mistakes, and a certain wrong judgement may cost them money. Use the Forex MetaTrader software to help you reap profits by following these 3 basic tips.
Make use of the demo account feature
Nobody comes into the forex trading world as a pro. Transactions are generally done in the USD 10,000 (minimum) range, and loss incurred will also be in that range. Most traders think of the demo account as a waste of time and money and want to trade live directly in the market.
A demo account will give you practice in the real world, and you will learn how to manage risk and where to invest. Losses incurred will be virtual, and you will gain valuable experience.
Keep your options open
This is another common mistake the newbies make. Just because this is the most popular currency pair does not make it the safest. You can buy the pair at 1.79 and may see it fall to 1.32 within a week. That’s 4700 pips loss.
Forex MetaTrader software will come with charts and graphs framed with years of historical data and statistics. These charts would have shown that Euro was likely to fall, and you could have avoided the purchase.
Avoid over-expectation from the market
Another misconception that newbies have is that sticking to one currency pair and wait for it to rise again. Say Euro has fallen to 1.68 from your purchase rate of 1.79. It is not wise for it to rise again. What is doesn’t over the next year or so?
With Forex MetaTrader software, you can keep a check on almost ten other currency pair. The software can be set to detect a pair that is expected to rise steeply over the next month, say. You can sell the Euros on hand and make up for the loss with the other currency pair.
A smart trader is the one who can build on his losses. Making use of software will only increase your chances of reaping profits, not only by simple buy-sell concept but also be analysing the market. Forex MetaTrader software is available online at various price ranges and let it aid your investment process.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.