Forex Trading Fundamentals

Discussion in 'General Trading Discussion' started by admin, May 16, 2016.

  1. admin

    admin Administrator Staff Member

    Joined:
    Feb 2014
    Posts:
    9,592
    Likes Received:
    8
    With so much advertising being on the Internet about FOREX these days, it’s easy to become caught up and find yourself depositing savings into your trading account. Those advertisements make trading seem so easy; however, it’s far from that. Yes, trading is simple, but definitely not easy. So, hopefully you came here before making your first real trade because I really want to help you avoid some mistakes that beginners tend to make.

    Money Management


    This is one of the most important things in trading. I probably could write another article about money management. But… the thing is that traders who are just getting started don’t pay attention to money management. Because it simply seems like a small and irrelevant detail. Only problem is that FOREX trading is all about…. details. So, my tip is to study money management strategies and never risk more than 2% of your account per trade. Cut your losses short.
    There are very well known traders that have their winning ratio only at 52% and they are still very successful and are making a great living out of trading. Well, it is thanks to money management.

    Stop Loss

    Again, if you are just starting to trade write something down. STOP LOSS. This is probably your most powerful weapon against your own weakness. See the thing is we have huge egos. We always want to be right so badly… Same thing in trading. When we open the position and it goes the wrong way for us, one thing happens. Our ego turns on. We realize that the market went the wrong way but we don’t want to lose and we start making irrational excuses to make ourselves stay in a trade that’s going bad. It also makes us break the 2% rule. That’s the reason why we must use Stop Loss while we are in a rational thinking mood just after entering the position.

    fxfundermentals.jpg


    Do Not Over Trade

    Forex trading is an exciting, fun and dynamic business, but it’s crucial that you don’t get carried away by those emotions. You should treat FX trading like a business, as it is and it is not a hobby. You have to be serious about it. You use your capital to make business decisions and some will be profitable and others will cost you money. But you always must stay focused and don’t let emotions take control of you.

    This is very important. It’s normal that when you lose a position or two you want to get back in as soon as possible, but that’s just a wrong move to make. When this happens we as traders tend to make more mistakes and we stop thinking rationally because we want to take back what we lost. However, it would be way more effective if you took a step back and went for a walk. When you come back simply start analyzing your mistakes. Trust me, this is what I do and this is what will save you some money.

    Take notes. Study your successes and failures.

    I’ve done this back when I started 2 years ago and I do this till this day. I have every single screenshot of my executed positions and you should too. Because after everything is said and done you can analyze patterns of your trades. You can also analyze your strategies more effectively since you are not caught up in the moment and you are able to think rationally so you can decide if your executed trade met every rule of your strategy.

    Focus on main currency pairs.

    EUR/USD; GBP/USD; USD/CHF; Some traders would also mention USD/JPY, but personally I wouldn’t recommend trading this pair if you are in the beginning stages of FOREX trading. USD/JPY is very unpredictable and is very sensitive to fundamental events. So, I would suggest to concentrate on the other three pairs.

    Keep It Simple
    FOREX Trading isn’t easy, but it’s simple. It’s not a rocket science and no one expects you to be a mathematical genius to make some money in trading. However, simple things like discipline, control of emotions and good strategy that goes along with your personality offers the surest path to success in the FOREX market. So, be patient and success will come.

    Source : http://investmentwolves.com/forex-trading-fundamentals/
     
  2. radex78

    radex78 Senior Investor

    Joined:
    Sep 2015
    Posts:
    98
    Likes Received:
    0
    One advantage forex for me is market open 24 hour 5 day a week, this giving benefit even treat as part time job but still can giving opportunity to make money from forex business, I have seen so many trader still treat as part time business like as my friend which many from them still handle offline job

    Learn about fundamental analysis also as part in trading analysis, news high impact like as fomc and nfp sometime will become trigger many fundamentalist trader
     
  3. gauridollar

    gauridollar Member

    Joined:
    Nov 2017
    Posts:
    18
    Likes Received:
    0
    Hello, I am reading your forum and I like this so plz help me to join it.
    Thank you
     
  4. kirtimeliwal

    kirtimeliwal Senior Investor

    Joined:
    Jul 2017
    Posts:
    112
    Likes Received:
    2
    The basic requirement for trading in the forex market is to learn basics about the market. It is better to get a short overview of the forex trading before starting. It is more beneficial for newbies to trade after completing a deep study of the forex market.


    stock tips
     
  5. Josesv

    Josesv Member

    Joined:
    Jan 2018
    Posts:
    22
    Likes Received:
    3
    The fundamental analysis is based on the main macroeconomic indicators that move the market either up or down. very interesting contribution. Thank you
     
  6. gauridollar

    gauridollar Member

    Joined:
    Nov 2017
    Posts:
    18
    Likes Received:
    0
    Nice forum!!! Thanks for provides wonderful and useful information which is very beneficial. I really appreciate your forum. Please visit our link Equity tips.
     
  7. Advisorymandi

    Advisorymandi Member

    Joined:
    Mar 2018
    Posts:
    13
    Likes Received:
    0
    Great forum- Thanks for provides useful information its really helpful for new Traders.
     
  8. Zak

    Zak New Member

    Joined:
    Mar 2018
    Posts:
    1
    Likes Received:
    0
    Hey guys!

    When I was a newbie, I also had a hard time finding the perfect trading course online. There are lots, yes, but not all of 'em are really helpful. Being new to something like this is really crucial and confusing. You gotta search thoroughly the perfect online trading course for you.
     
  9. kirtimeliwal

    kirtimeliwal Senior Investor

    Joined:
    Jul 2017
    Posts:
    112
    Likes Received:
    2
    Forex trading can make you rich if you are an unusually skilled and experienced currency trader or a hedge fund with deep pocket. Also this could be interpreted that about one in three traders does not lose money while trading currencies, that's not the same as getting rich trading forex.
     
  10. Del

    Del New Member

    Joined:
    Nov 2018
    Posts:
    2
    Likes Received:
    0
    Do you have any issue of funds with your broker be it withdrawal, manipulation of account or lost of funds? kindly contact this charge back company on [email protected] for your assistant.
     

Share This Page