According to my observations, novice traders often have a pessimistic mood regarding earnings in the market. They find it extremely difficult to be successful in trading. Of course, to trade profitably, you should have a certain theoretical knowledge base and gained experience in trading. And also some trader skills are required , which are mostly related to psychology. In fact, we already have many of them. They just need to be recognized and applied in trading.
Today I want to tell you about a number of important components of profitable trading. They are based on the experience of professional traders, as well as personal observations of the trading process. Even if you no longer consider yourself a newcomer to the market, some of these recommendations may be useful to you.
How to make money in forex
Of course, for successful trading, you need to have the skills to analyze the market situation. However, novice traders sometimes mistakenly believe that analysis is time consuming and spend almost the entire day in the trading terminal. In fact, this is not the case. Trading is carried out according to a trading strategy that has clear conditions for opening orders. All a trader needs is to track the presence or absence of the required setup. If it is there, we open a deal, if it is not there, we can do other things.
Trader's skills should include the ability to correctly read charts and act on the situation that is currently observed in the market. Any forecasts for the further direction of the market movement do not give any guarantee that the situation will develop in this way. Opening trades on the basis of an assumption means increasing the risks in trading.
You cannot trade according to someone's advice and recommendations. Unfortunately, many novice traders do just that. I do not urge you to refuse to read analytical reviews. They can be useful to some extent, but only as an addition to your own market analysis. The same should be applied to the advice of other traders. They do not guarantee a profitable trade at all. Professional traders do not completely trust even robots. They provide advisors with the opportunity to perform only part of the trading work, while they themselves control the entire trading process.
Experienced traders do not trade based solely on fundamental analysis. Their trading is based on technical analysis taking into account the release of important news. The publication of important statistics or decisions of the Central Bank on rates can cause a sharp increase in volatility, and a trader should not ignore this.
Often, novice traders set themselves ambitious goals for making money on the market. And when it becomes obvious that it is extremely difficult and even impossible to achieve them, then disappointment comes in this type of earnings. The goals must be realistic, that is, formed on the basis of an objective assessment of their own capabilities.
A trader's skills must necessarily be aimed at developing strict discipline. Without it, making money on the market is, in principle, impossible. Impulsive trading under the influence of emotions or a certain mood is initially devoid of a chance of success.