Forex rules you need to know for successful trading
In order to become a successful trader, you should know and follow certain Forex rules, essentially these are recommendations, they indicate the basic principles of Forex trading, they can significantly reduce losses and not make ridiculous 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 you cannot escape their influence.
This set of Forex rules was 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 not predictable - you cannot be 100% sure where the rate will go, even if 10 out of 10 factors testify in favor of the trend and it is confirmed by all established indicators. Be prepared for a sharp reversal; it can be caused by many factors.
As practice shows, sometimes even the use of technical analysis methods does not give the desired result, and it is also impossible to predict the reaction to the news with one hundred percent probability.
2. Trade only with the trend - no matter how you calculate the size of the correction, it may end ahead of time, so trend trading always remains less risky and more profitable.
This is the basic 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 occurs by itself; it is always based on a certain factor - news, intervention, an increase in demand or supply.
If you know all the rules, then success is simply guaranteed.
4. The amount of knowledge equals profit - the more a beginner learns about forex trading and the more his own trading experience, the more profit he can make.
Any of the professional traders will confirm this to you, so for the sake of experiment, take a free training course at one of the Forex DCs, and then compare the trading results.
5. Everything has a relationship - there is a correlation between almost all instruments, the US dollar exchange rate is linked to the price of oil, the Australian dollar grows if the price of gold rises, look for the relationship and fabulous prospects will open up before you.
6. Risk equals profit - the more profit you can get from one point, the higher the risk of losing your entire deposit; this trend can be seen quite clearly; it is among scalpers that the largest number of bankrupts and millionaires are found.
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 calm will end and the market will begin to move dynamically.
Don’t miss your opportunity to make money on pending orders that you place outside the support and resistance lines; they will work when a dynamic trend begins.
8. History repeats itself - look at the history of price movements 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 a lot of similarities, especially if we consider not the most popular currency pairs.
Forex trading rules play a major role in carrying out profitable trading; only by following them can you build your own system of work and receive a stable income.
Some Forex organizational rules
- According to the rules, forex trading is only allowed to persons over 18 years of age
- A commission is charged for opening a transaction
- For transferring orders to the next day, it is also possible to charge a commission
- The broker is not responsible for losses incurred by the trader
- Margin trading carries increased risk
- Profits made on Forex are subject to tax, depending on which calculation method you use, the tax amount can range from 6 to 35 percent.
You might be interested in:
The amount of taxes on exchange trading - http://time-forex.com/info/nalogi-s-zarabotka-na-foreks
Basic laws of the Forex market - http://time-forex.com/osnovy/zakony-rynka-foreks