Whether you trade stocks or futures, Forex is the most complex and volatile market of them all. It is a market that deals and currencies and remains open for 24 hours a day, 5 and half days a week. The market divides itself into sessions and embraces fluctuations depending on these sessions. However, brokers often comfort their clients with by claiming that there is no lose in Forex trading. While this phrase remains a debatable question to some, here are some techniques that can actually eliminate loss from Forex trading.
How to avoid currency trading losses?
Since, the market is so volatile; therefore, an investor needs to implement precise strategies and techniques to visualize his or her Forex dream. To be exact, proper implementation of strategies form the basis on which a successful Forex career stands. So, here are some intricate strategies that are essential for an effective trading experience.
1. Day Trading or scalping:
This is a shorter version of trade in Forex. Using this strategy, traders open their positions when the session starts and closes with the closure of the session. This strategy ponders exclusively on minute price fluctuations that take place throughout a day. It can also help in eliminating Forex trading losing money situations.
For instance, a trader may be investing in USD/EUR which is currently trading at 1.3002. Chart forecasts state that this price will rise to the 1.3006 mark. Thus, a trader exploits this price difference and secures approximately 4 pips as his net profit. This is how day trading works.
2. Carry trading:
Long term traders look to embrace carry trading as their home ground. In this longer version of the trade, investors keep their positions open for a couple of days before closing it on a profitable note. However, this technique requires constant scrutinization of market situations to claim that there is no lose in Forex trading. To do that, an investor needs to.
• Indulge in trading from his smartphone.
• Use trading platforms that provide constant notifications and market updates.
• Strive towards decreasing slippage and latency.
3. Swing trading:
This is another longer version of the trade where investors need to hold their positions for multiple days before seeing the face of profit. Although this technique is time-consuming and requires patience, it is one of the most profitable strategies currently looming this currency market.
The necessity of trading platforms:
To avoid lose money Forex trading; one needs to take a closer look at the trading platform he is using. Reliable platforms such as MetaTrader 4, MetaTrader 5 or Bloomberg offer effective assistance. They perform historical analysis and helps traders in carving out their preferable investment approaches. Moreover, these platforms also come as apps in smartphones and tablets. Thus investors can keep track of their account irrespective of their time or place.
So, it is clear that, implementation and adoption of correct strategies and platforms play crucial roles in securing a person’s trading profits. Only by complete elimination of losses will a person be able to claim that there is no lose in Forex trading.
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.