Practical Trading Secrets
The main secrets of Forex trading lie in reducing trading risks and using the most effective capital management methods.
Thanks to their use, the level of profit received significantly increases and the risk of completely losing the entire deposit amount is reduced.
Trading secrets are equally effective when trading on Forex and other financial markets, and can be roughly divided into two main groups.
The first one includes recommendations regarding capital management, and the second one contains advice on how to actually carry out trading.
After reading this article, you're unlikely to find the Holy Grail, but you're guaranteed to be able to reduce your current level of losing trades and increase the profitability of your successful positions.
Secrets of capital management for trading
Capital management directly impacts trading performance, as it allows for a significant reduction in non-trading risks.
• To avoid losing your entire deposit, try not to keep any extra money in your trading terminal account. No one is immune to errors and glitches, and proving your case afterward is quite difficult.
The interest accrued on your available funds is unlikely to cover your losses, so always withdraw any profits you make.
• Immediately deposit money into the account in the currency in which you intend to trade; usually the exchange rate within brokerage companies is less favorable than at exchange offices.
• Change the account type – if you were trading on a cent account and then gradually increased your deposit, it is better to switch to standard or VIP accounts. As practice shows, a standard account always has more favorable trading conditions, and comparing VIP accounts does not make any sense at all.
• Try to work only with dealing centers that provide deposit insurance services; there are not many of them, but those who seek will always find.
The main secrets of trading and their practical application
• Use the principle : the shorter the time frame, the greater the leverage applied, the volume of transactions, and therefore the profit received.
On the contrary, on longer time frames you should trade with less leverage, as a correction will lead to greater losses.
• Trade currency pairs depending on trading sessions, usually the strongest trend is observed during the trading session in the time zone in which the country issuing the currency is included.
This approach allows for more effective use of fundamental analysis and strategies based on it.
• Learn to distinguish a pullback from the main trend, this will give you the opportunity to make more profit and avoid losses.
For these purposes, use price channels and analyze adjacent time frames.
• Don’t trade against the trend – this is a truism that every trader should know, but here it should be added – against the trend on your timeframe.
However, this secret does not apply to trading using pending orders; there are many tactics built on the expectation of a trend reversal.
• The gap always closes – a rule that almost always works, so it is advisable to take this into account when opening new transactions after a gap.
• Flat is always followed by a breakout, which provides an excellent opportunity to earn money on pending orders. This Forex secret is known to many, don’t miss your chance.
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Every trader has their own secrets to Forex trading, and they emerge if you remember to analyze your trade history and draw the right conclusions based on the data you receive.
At the same time, we must not forget the most important secret: you cannot make money on the stock exchange without putting in the effort, without spending time on study and practice.
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