*This is a guest post by Julia Smith.
The foreign exchange market (also known as Forex) is a global decentralized market for the trading of currencies. Based on volume of trading, it is by far the largest market in the world.
Beginners often ask how to succeed in Forex trading. The main guarantee of success is to develop a competent strategy. Trading on online platforms requires awareness, ongoing training, clear understanding and monitoring of a chosen strategy.
mt5 brokers UK provides the following advice for newcomers in trading:
-Constant control over your thoughts and emotions. A successful trader should not allow his emotions to prevail over reason and cold calculation.
-Presence of a reasoned strategy. This rule will help you to avoid problems associated with the first paragraph, and will also enable you to act according to a clear plan in any situation.
It is necessary to analyze market trends and adapt your strategy accordingly. This analysis should be done during daily and weekly periods of time. If you determine the direction of trading on the basis of weekly charts, and choose the time to enter the market on the basis of daily charts, synchronize these data.
In other words, if the weekly chart says to buy, get a confirmation on the daily one.
Be consistent in your strategies. If you have a trading system, follow it unconditionally, and do not choose whether to believe the system or rather to wait. If you have set a stop-loss level, exit the market when it reaches it, and do not try to push it a little further away. In any case, the results of a strategy can only be analyzed if it is used consistently.
Otherwise, the result of your work will be a consequence of the intersection of a large number of randomness. In the best case, this result will be zero.
Do not forget that you are risking your own money. Accept this fact as an obligatory component of your work and form your loyal attitude to it. The next rule follows from the previous one. Limit your losses.
In other words, determine for yourself the amount that you can afford to lose and do not exceed this limit.
Create positive feedback. Positive feedback is built when you made a successful transaction in accordance with the plan. Success generates a new success and gives self-confidence, especially if the transactions were profitable and held according to plan.
Trend is Your Friend
Trend is your friend. Do not trade against the trend! The idea of “catching” the global market turn and buying at the very minimum is certainly very tempting. But believe us, not one million traders managed to try it and lost on such heroism.
A Final Note
Do you want to be succeed in trading on online exchanges? Consider the rules outlined above before developing your own clear and successful strategy.Remember that everyone can make a mistake, but if you follow all of the points clearly, your chances of catching luck increase significantly!
*This guest post is sponsored by FxPro.