How to trade forex successfully
This article points out what you must do if you are looking for how to trade forex successfully.
In forex trading, the number of people making money is much lower than the number making losses. This explains why it is very common to find people asking questions on how to trade forex successfully. Well, there is no cast-in-stone rule to achieving this but from the few pointers we are going to look at here you will be able to turn around your trading to the positive region.
If you are looking for how to trade forex successfully, start by reducing the instruments you trade
Even though most brokers provide you with nearly hundred instruments to trade, it is not wise to try and pick trades from all of them at the same time. It is advised that you stick to just two pairs. This will help you to understand how each of the pairs move, volatility levels, and you will also have enough timeto analysethe charts and reason in a clearer manner. If you must trade more than two instruments, do not go beyond the majors plus gold, crude and the Dow Jones IA. With this you will have 12 pairs to trade and this is more than enough for you to get tradable opportunities. If you are living in a location where you are not allowed to trade the other instruments then stick to just the currency pairs. Trying to keep an eye on as many as 30 instruments is a recipe for disaster as you will end up take correlation trades and by so doing you double your losses. There is no way a major move will occur in any of the pairs listed and it will not show in the major pairs. So the fear of missing out on trading opportunities does not arise. You are never going to catch every single movement anyways.
Stop running around too many trading indicators
This is something most traders do not understand. The higher the number of indicators you are trying out, the higher your chances of losing more money. So if you have like 3-4 indicators on your charts you are already setting yourself up for failure. The reason for this is simple. Having more than two indicators on your charts at any point in time means you have to wait for all of them to line up before you take the trade and most time s before this happens, the market has already left you behind and you end up entering the trade in the middle of nowhere. To deal with this, pick just one good indicator you have back tested and have proven to be at least 70% accurate and stick to it through thick and thin. When you do this with proper money management, you will notice a steady increase in your account balance and it is only a matter of time before your account gets to that state of utopia.
When you are able to incorporate these points listed here, you will successfully pull yourself away from the group of people looking for how to trade forex successfully.