Forex rules you need to know for successful trading
To become a successful trader, you should know and follow certain Forex rules. These are essentially recommendations that outline the basic principles of Forex trading, allowing you to significantly reduce losses and avoid making foolish mistakes.
On the other hand, these are patterns, knowing which you can choose the most successful place to enter the market or, conversely, refrain from active trading.
The main feature of recommendations is that they are always in effect and their influence cannot be evaded.
This set of forex rules has been compiled by more than one generation of traders and includes all the bitter experience of trial and error.
As you work, you can create your own rules; they will help you get organized and become more successful.
1. The market is unpredictable – you can't be 100% sure where the price will go, even if 10 out of 10 factors point in favor of the trend and all established indicators confirm it. Be prepared for a sharp reversal, which can be caused by a variety of factors.
As practice shows, sometimes even the use of technical analysis methods does not produce the desired result, and it is also impossible to predict the reaction to a news release with 100% certainty.
2. Trade only with the trend – no matter how you calculate the magnitude of the correction, it can end prematurely, so trend trading is always less risky and more profitable.
This is the main rule of forex, followed by 99% of all traders.
3. A trend has a reason – a change in the value of a currency pair never happens by itself; it is always based on a specific factor – news, intervention, an increase in demand or supply.
If you know all the patterns, then success is simply guaranteed.
4. Knowledge equals profit – the more a beginner learns about forex trading and the more experience they have, the greater the profit they can make.
Any professional trader will confirm this, so try taking a free training course at one of the Forex DCs and then compare your trading results.
5. Everything is interconnected – there is a correlation between almost all instruments. The US dollar exchange rate is linked to the price of oil, the Australian dollar rises if the price of gold rises. Look for connections and fabulous opportunities will open up before you.
6. Risk equals reward – the more profit you can make from one point, the higher the risk of losing your entire deposit. This trend is quite clear; scalpers are the ones with the highest number of bankruptcies and millionaires.
7. A flat cannot last forever – even if only horizontal price movement is observed for several days, the trend will in any case go up or down, the lull will end and the market will begin dynamic movement.
Don't miss your opportunity to profit from pending orders placed behind support and resistance lines; they will trigger at the start of a dynamic trend.
8. History repeats itself – look at the price movement history for a period of more than a year and you will notice many interesting coincidences. Compare price movements at the beginning of the month and at the end; there are also many similarities, especially when considering less popular currency pairs.
Forex trading rules play a key role in profitable trading. Only by following them can you build your own trading system and earn a stable income.
Some organizational rules of forex
- According to the rules, Forex trading is only permitted for persons over 18 years of age
- A commission is charged for opening a transaction
- A commission may also be charged for transferring orders to the next day
- The broker is not responsible for losses incurred by the trader
- Margin trading carries increased risk
- Profits earned on Forex are subject to taxation. Depending on the calculation method you use, the tax amount can range from 6 to 35 percent.
You may be interested in:
Taxes on stock trading - http://time-forex.com/info/nalogi-s-zarabotka-na-forks
The Basic Laws of the Forex Market - http://time-forex.com/osnovy/zakony-rynka-forks
