Tuesday 7 March 2017

Online Currency Trading; The Dos and Don'ts.

Major currency pairs you need to get familiar with in forex trading.
First and foremost, let me tell you that for you to become successful in your trading experience, you need to be a smart worker. Most traders complicate issues for themselves. They confuse themselves with the indicators they use to predict the trend of the market. They keep long on their computer, looking for a holy gray trading system, that will give higher profit in their trades. But the sincere truth is that it doesn’t work like that. However, the few who would make a fortune out of trading, would display wisdom by working smart. And that is exactly what you need.
Now, we are going to consider what working smart and working hard are, in this context. These are the steps you need to take in placing successful trades.
SIMPLICITY – A smart trader will keep it simple. He wouldn't need all the indicators in the world to carry out his analysis. He’s wouldn't also going to bother himself about all the currency pairs on meta trader platform. He would focus his analysis on few currency pairs.. The word to describe his simplicity is being focused. This is one good attribute every trader should possess. If you don’t have it, it might not be easy to be successful in your trading experience.
MAP – Basically, the purpose of a map is to give direction. A trader needs to map out his strategy, which he would need to follow through diligently, as a guide or direction. As a trader, you need a plan that would serve as a guide or direction. One important reason why a large number of traders make losses in their trading experience could be because of lack of direction and proper planning. Traders need to plan their trades, and trade their plans. When you have a clue on what is happening in the market at a particular time, it will give a direction or an idea on what to do next, thereby helps to determine the right currency pairs to trade, and the right profit to target.

Mt4 platform chart, analyzing price action with the help of candlesticks
APPLICATION – This is where one has to rightly apply all he has planned in the previous step. Here, your full attention is required. You would have to give attention to every detail of your plan before it is carried out. This is where you would need to display a level of wisdom. And wisdom is defined as the right application of acquired knowledge. It means, at this time, you need to rightly apply all you have mapped out at the previous stage, for you to be successful at the end of the process. Invariably, wrong application of the mapped out plan would result in failure or losses. At this point, your trade is being executed.
RELAX – At this stage, your trade would have been placed. What is required of a trader, at this point, is to shut down your computer and take some rest. Only one would have to check those trades at intervals. Do not take any tension, at all. Your target profit and stop losses must have been set. Be confident enough to trust your instinct. The benefit of staying away from your laptop, for some time, is that it would keep you from being influenced negatively by your emotions.
TAKE your profit – At this point, your profit could have been taken, automatically. If you find out that the price movement has not reached the target profit set initially, and there is no tendency it would reach it, wisdom should tell you to close your trade at the current price, except if there is likelihood, from your analysis, that the market trend is still in your favor. Another experience a trader could have at this stage is that the price could have reached the stop loss, and you have been stopped at a loss from the trade. You don't have to be discouraged at this, because losses are part of the game. If you have a good working system, you should be rest assured that your trades won't result in losses all the time.

What you need to avoid when placing your trades

HASTY – You don't have to be in a hurry to place your orders or else, you would burn your fingers. You would need to take your time to study the situation in the currency market, at a point in time, and use your findings to do your analysis. If there is no reason or need to place an order, you don't have to be influenced by any sharp movement that occurs in the market.
ANGER – Don't get angry based on the result of your past orders or trades. The implication of getting angry is that it makes you to react to the currency market, irrationally. Like I said earlier, losses are part of the game. Let it get registered in you that there is no trading system that will achieve a 100 per cent success rate. Those trading systems, so to say, also have their down times. So when you make some losses, calm down and do a review. That's the way to learn.

REPETITION – When a trade or a group of trades result in losses, there is a need to sit down and make evaluation on why those trades result in losses. The trader in such a situation would need to ask himself questions like "what did I do wrong?", e.t.c Such an evaluation would prevent the trader from making same mistakes. You can't continue to do something in the same way and expect a different result.That is talking about repetition. One would need to think of a better way of doing it to get a different and better result.
DISAPPOINTMENT – You need to avoid being disappointed. When you work hard to avoid others like hastiness, anger and repetition of bad trading attitude, automatically, you would avoid being disappointed.
Finally, I want to tell you at this point, that currency trading is not suitable for everyone. It is only for the people who can actually manage their emotion; greed and fear. The people who can take reasonable and calculated risks.
Have a pip filled day!

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