Trading Forex is never easy and the market itself can prove to be one arduous opponent. However, there are many who are having a sufficing share of this global treasure chest. Despite the odds being quite daunting, these traders have ways to counter volatility and tame the market. What are those Forex trader secrets or Abracadabra trading strategies which are giving them success?
Read on and unveil them!
Secret 1- Choosing Leverage Which Is 10:1/20:1
That being said, many successful traders always opt for leverages which are reasonable. That means they don’t go just for something like 100:1 or 200:1. For sure, if everything does go well, then one could feel the king of the world, but it not then one can end up wiping out their entire trading account.
This is more so in case of those who are only a few days old in FX trading and whose eyes light up on seeing such high and enticing leverages. This is one of an essential Forex traders secrets venture veterans would opine neophytes.
Secret 2- Letting Go Of GREED When Trading
2nd in the list of successful Forex trader secrets involves letting go of unrealistically high-profit expectations. It is due to this greed that many traders enter into unnecessary trading and lose all their cash.
It could also be the same gene which lures traders to get into things like Doubling-Down their trading, even when the market situation is not congenial. Experts of the venture state clearly that FX should not be taken in similar lines to gambling. It is a serious market and involves a sound strategy with plenty of common sense.
Those who want to gamble should not try entering this venture or better yet try their luck in Vegas. Whereas those who do should seriously think of letting go of their Greed or pursuit of really high profits.
Secret 3- Not Keep Too Many Traders Open At the Same Time
In words of fighter pilots, they refer to it as ‘Helmet Fire’. Simply put, it’s a situation where far too many things are taking place all at the same time and rarely giving enough time to react. Situations as such can cause death and in case of FX trading can lead to traders become a pauper.
Rather the smart way of going about things would be to focus on the trade at hand and try to secure profits from it first. With more experience one will learn the skills to handle more than one trade together, but for the time-being its best to not go for the full ‘Monty’.
Thus, these are some of those crucial secret Forex trader know-hows which one should keep in mind. Jumping in with both feet is never suggestive until one gains substantial familiarity about the market and trading basics.
Many traders ignore the rudiments of FX trading and that is why they always end up getting dirt in their palms. Do consider these Forex trader secrets and trade currencies the right way.
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.