Forex trading is one of the most effective, rewarding, hassle-free and interesting way to make money online. However, even with all these positivity, a good majority never get good gains in their Forex trading. Many are the times that they accumulate good cash for a couple of days and then they incur a heavy loss possibly taking over all the profit that they had accumulated along with their capital. Well, many traders say that Forex is just like bad games but for us the experts, who know what Forex trading really is, it is not a bad game; it is trade of logics.
So how do you become a successful Forex Trader?
It is very easy to become an excellent Forex trader with very minimal chances of incurring a loss in your trades. Outlined below are some tips and tricks that should give you a good ground in Forex trading to be a successful Forex trader:-
i) Choose a simple to use platform – Forex trading doesn’t need to have an overly complex trading platform. As long as you can see the past trend of a given currency pair, graphical illustration of the same and a simplified way to initiate your bids and buys, then that platform should be good for you. Currently, many people have embraced the Meta Trader 4 platform due to its ease of use and adequate tools to complement trading activities.
ii) Select your currency/stock/precious metals wisely – If you want to be a good trader, you should ensure that you make a good choice of your currency pair or commodity. A pair or commodity that has moderate fluctuation should be considered ideal. For instance, USD/JPY, USD/CHF, USD/EUR, EUR/JPY and GBP/USD have moderate fluctuations within a certain price region and hence are less risky in trading as compared to the massively fluctuating commodities such as gold.
iii) Be sure to use Take Profit Tool – In as much as you may want to stay online watching the progress of your open trades, practically you will have to be away from time to time. To take care of that, it is always advisable to set an easy-to-attain Take Profit mark for every open trade that you have, preferably at 10 pips away.
iv) Let your capital determine your Lot Volume – One big mistake that Forex traders make is that they fail to correlate their Lot Volume and the capital invested. In order to keep away from making losses, your capital should be much higher in margin than the risk that your volume puts on your capital. A good way to do that is to ensure that your capital is at least three times the product of the Lot Volume selected, and the maximum deviation between the current price and either the minimum or the maximum price that the commodity had attained in the past three months. This will ensure that your trades survive even when the unexpected happens because it’s always for a short while and the curve takes course on the opposite direction.
With these tips, you will be bound to be a successful Forex trader and find Forex trading much more interesting.