Rules for successful forex trading
You don’t need a university degree, but you definitely need a plan that you stick to. Deciding on your take profit levels and stop loss levels is an important first step to successful forex trading. The next is to avoid the temptation to go beyond those levels. When stocks hit new highs after more and more people started engaging in online trading as a way to supplement their income. The Nasdaq is trading at record highs and the Dow Jones Industrial Index is near record highs. This may seem irrational given the havoc that global lockdowns have wreaked, but investors are betting that the world economy will make an aggressive recovery. Traders are constantly on the lookout for volatility. For many years, they used their craft in the currency market and then volatility in the world died after Brexit (although it has since returned.).
Rules to consider to get good at forex trading
Below, and on our website, we have gathered a lot of useful information for those who want to become a successful trader. By following these and other rules we have put together, you will increase your chances of becoming a better trader, and reduce your losses. You will learn how to deal with downturns, and how to avoid taking your profits too early. In fact, it’s just as important to avoid taking a profit too early as it is to quickly learn how to close a trade that doesn’t have the potential to make a profit. Set a profit and loss ratio You need to look at a 2:1 ratio of profits to losses. In other words, look to make twice as much in profit as you are willing to lose. This means you need to decide what level of profit you are willing to take. This is called a “take profit” level, which can be pre-programmed into your trading account. At the same time, you should set a ‘stop loss’ level – which is the level at which you will exit a trade should it go against you.
Don’t cheat with profit pickup & stoploss
Why traders lose: They start cheating with their take profit levels and stop loss levels. This is especially true for trades that go against the trader. They tend to extend the stop-loss level in the hope that a losing trade will eventually turn around and become profitable. The problem with this is that losing trades, left to run their course, can eventually wipe out your account. It’s better to recognize the loss and exit when it reaches your stop-loss levels.
Educate yourself through Viking
Vikingen.se has a large number of helpful articles, such as what is a pip, what factors affect exchange rates and different tools to use, e.g. Bollinger Bands, RSI and the Pitchfork indicator. Of course, it is also good to know about different types of graphs that can provide additional information. One suggestion is to learn how to read the candlestick.
Follow the experts with copy trading
Copy trading: For those who don’t have the time and inclination to study trading, ‘copy trading’ is an option. This allows you to mimic the trades of successful and experienced traders. This is a service offered by, for example eToroand you can review the history and track record of a variety of traders and their strategies, and then decide if this is for you. Once you’ve decided to jump in, trading can be fully automated. Which is better – forex, indices, stocks, commodities, cryptocurrencies? There is no simple answer to this. Each market has different dynamics. Gold and precious metals have roared ahead in 2019, oil has been subdued (but with periods of volatility, which traders love) and equities have rebounded strongly since the Covid crash in March 2020. There has been an exceptional opportunity for profit in each of these asset classes. Bitcoin and other cryptos have also been on a magnificent journey and are now seen as safe haven assets in an era of reckless government financial behavior. Open an account with a regulated broker: One of the benefits of choosing a regulated broker is that it falls under supervision that provides a level of comfort and regulatory oversight for South Africans.
Are you one of the winners in forex trading?
Is it true that most traders lose? There is some European research that suggests that many traders lose money. What is more interesting is to examine the reasons for this. Those who lose tend to deviate from their own trading plan (by letting their losses go and taking profits too quickly, for example). This is more a lack of experience. On the other hand, there are traders who have been around 20 and even 30 years, who learned from their mistakes and quite consistently earned. No one will get it right all the time. Stick to your trading plan, exit your losing trades on time (at your predetermined stop-loss level) and aim to make twice as much as you are willing to lose in a trade.
About the Vikingen
With Vikingen’s signals, you have a good chance of finding the winners and selling in time. There are many securities. With Vikingen’s autopilots or tables, you can sort out the most interesting ETFs, stocks, options, warrants, funds, and so on. Vikingen is one of Sweden’s oldest equity research programs.
Click here to see what Vikingen offers: Detailed comparison – Stock market program for those who want to get even richer (vikingen.se)
