The vast majority of speculators, including stocks, foreign exchange, futures, etc., lose more than they win, and only a few people make money. However, on the other hand, many people can greatly increase their investment returns through simple foreign exchange trading skills and tricks. 8 simple tricks to help you stay away from losses!
1. Start your trading with simulation
For foreign exchange beginners, do not start real trading easily. Losing money is really too easy. Practice with a simulated account first. If you are very eager to start real trading, you should have at least one month of simulated practice time.
2. Learn more and communicate more with others
Spend more time communicating with your peers and listening to their experiences. Although this may not make you profitable immediately, it will allow you to absorb experience from all aspects. As a beginner, your experience is never enough, so you need to think more and summarize more.
3. Are you really familiar with your platform?
It sounds simple, but many people make low-level mistakes from this, or they don't know how to use many powerful functions. For example, incorrectly set stop loss and take profit, place the wrong order, use the chart function incorrectly, etc. First you need to know how it works, and complete these functions in simulated trading until you are 100% familiar with the platform.
4. Entry and exit strategies need to be adhered to
Impulsive trading cannot be considered a strategy. Impulsive trading is often based on feelings. In fact, many people trade based on feelings. Trading strategies are planned. There is a famous saying on Wall Street: plan your trades and trade your plans. Remember not to deviate from your plan at any time, no matter how tempting the K-line looks.
Many foreign exchange traders like to test their strategies in historical market conditions. This is actually very necessary, although the past does not represent the future. But through testing, at least you can understand the basic characteristics of the strategy. Improve your foreign exchange trading skills and know what to do when trading.
6. No risk control, no trading
Make sure your strategy includes risk management and does not deviate from it. Especially when you encounter a negative trend, you should not hesitate to close your position decisively. For example, you can set it to stop trading on the day when your account loses 2%.
7. Don’t blindly chase ups and downs
This one is actually the most difficult to overcome. Many experienced traders make mistakes here easily, and some may even have to face this problem for their entire lives. You must be patient when trading, and the entry point is waiting. The market will always make people crazy in different ways, so you must understand what you are doing.
8. Once you make a profit, don't get carried away and lead to psychological expansion. People's mentality is easy to change after trading profit. When you just step on the rhythm of the market and make a few more profitable orders, you may start to feel invincible. This will lead to losing patience in trading and making mistakes of impulsive trading. Remember, when you are trading, you are a small boat on the sea.
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