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forex market It provides a great opportunity for everyone to enjoy many benefits. Beginners and experienced traders can access the market with just a few tens of dollars of initial capital. Playing forex trading does not require a variety of methods. But only a laptop or smartphone is enough.
This very easy market access makes it easy for people to keep it simple. forex trading. They do the calculations. “Exact profit by opening only 1 lot per day” or “Profit of millions of rupiah with only one trade per month” etc. In the end, many people suffer losses quickly because they are too careless and underestimated. market situation is too low
Playing forex is hard and easy. Experienced traders are definitely familiar with trading activities and can control their risks. but for new traders There is a lot to learn in order to avoid serious losses. What is that? Seven ways to play forex safely and profitably:
- Learn Forex Before Depositing
Trading forex has never been easy, learning forex is the first key to a safe opening for future profits. Novice traders need to learn Forex first. Let’s start with a technical trading method. There are essential terms in it to how to use the online trading platform. After that, beginners need to simulate trading on a demo account and practice technical and fundamental analysis.
During the simulation on the demo account Try to create a forex trading strategy and plan from scratch as simple as possible. Practice testing the system over and over to determine how big the win rate and profitability of the trading strategy being tested is. Make sure you can control your margin according to the leverage you use. After successful Newbies can deposit money for Start playing forex on a real account.
- Choosing a broker with a good reputation
The forex industry encompasses international markets. In fact, market supervision is performed independently by each country. This situation creates many vulnerabilities that irresponsible individuals can exploit. Many scammers create websites or social media offers under the guise of forex. They show impressive trading results and promise double profits. In fact, they only want to steal the members’ money.
in order not to fall into such scams We should check the license and reputation of the forex broker before opening an account. Don’t open an account with an institution just because you are tempted to make a profit. Remember, forex brokers are just intermediaries that connect traders to the market. How can an intermediary guarantee profits!? A broker can provide his clients with advanced trading facilities. But it cannot guarantee that his clients will be profitable or not.
Traders should choose Regulated forex brokers that has been authorized by official institutions such as CoFTRA (Indonesia), NFA/CFTC (USA), ASIC (Australia), FCA (UK), etc. Traders also need to google or search the reputation of the broker on the online trader forums. to find out what the quality of the trading facilities available is.
- Easy to use trading system
Many novice traders expect divine indicators. (Holy Grail) that is sure to make profits in every trading position. for that hope They have experimented with each indicator and its combinations. Until finally the chart screen was filled with pictures and unclear lines. They eventually get confused because the signals displayed by each indicator are different.
Instead of using multiple indicators on a single chart. Traders should use a simple trading system. There are many professional traders who succeed with simple strategies. It is important that traders understand the price action. can read candlestick and master the indicators used Make beautiful, easy-to-see chart settings from color to chart type. so that we can assess the market in the blink of an eye
- use risk management
Every trader must point out one thing: there is no god indicator in this world. All indicators have to be less than 100 percent accurate, so there are times when trades experience losses. Traders should implement risk management to minimize losses and maximize profits. Instead of looking for a fake god robot
Risk management techniques are the key to continued success that are widely used among professional traders. First of all, we all have to admit that trading can be profitable and potentially losing. Don’t be too afraid of losing or being too greedy. Make a logical trading plan based on market conditions, next, level of execution. Stop Loss (SL) and Take Profit (TP) according to the basic trading plan to control trading risks
Also read: Forex Compound Technique $100 capital can be $10,000
There are people who avoid stop losses and take profits for fear of being snooped by brokers. but actually We do not need to worry about such manipulations. If we join a reputable regulated forex broker, Stop Loss and Take Profit, on the other hand, can actually limit losses when the market conditions are not as we expected.
- Start real trading with small capital
Many brokers invite forex trading with tens of millions of rupiahs. The reason is that the bigger the capital, the more profits. However, this is just a marketing ploy. In fact, Forex traders have to start trading for real. with little capital before If the capital is low, the loss How can big capital be profitable!?
Also read: How to play forex trading with small capital
frankly Trading on a demo account is not enough to prepare a trader’s mind. Although we have been practicing with the demo account for several months now. But still, there may be a loss after logging into the real account. Why is that? Because our mental state when trading with money is different from our mental state when trading with real money. have a fear of loss greed for quick profits and much more. Traders need to learn how to control these negative emotions by starting trading with small capital first.
- Use limited leverage
Many forex brokers offer the facility to trade with leverage up to 1:1000, 1:3000 or even higher. Very high leverage allows traders to start trading with less capital. However, high leverage slows down our profitability. High leverage is also risky because we can lose more than the initial capital.
control Risk leverage, traders should use limited leverage only. What is the ideal leverage? Any leverage up to 1:100, we can use 1:20, 1:50 up to 1:100. However, avoid using great leverage like 1:1000 and others.
- Keep a daily Forex trading diary.
Without a note, it’s easy to forget the details of our daily lives. Similarly in forex trading activities From the process of learning and practicing the demo account Traders should start recording what they have learned and test it. write full date traded pair Trading techniques used How much profit/loss? and notes on what was learned from the transaction.
A trading diary like this can help us learn from experience. At the same time avoiding repeating mistakes in the future. Notes like these will help us manage our Forex trading activities like a professional business. In the long run, it can be consistently successful.
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