How to earn money on Forex?
Below are the basic principles of risk management and the psychology of trading. These rules do not guarantee profits because the market is very volatile and extremely large, but this knowledge is necessary to function in it. Without knowing the basics, earning money on Forex will be quite difficult. So, let's explore the key tips for profitable trading, this is a little Forex guide to making a profit on Forex.
Stop Loss and earning on Forex
Does earning Forex depend on your strategy? Or maybe they are affected by stop loss? No matter what your trading strategy is, you should always set your stop loss. Well, what is stop loss? This is a parameter that allows you to specify the closing price of your position. This position will close at this level without your presence. In other words, once you've placed a stop loss, you can rest in the knowledge that you won't lose more than you might expect. However, it does not necessarily have to work every time as the market is behaving erratically and you can observe price gaps. When a price gap occurs the stop loss will not be triggered at the predetermined level but will be executed at the first available price for execution.
Keep your emotions aside
This may sound simple enough, but it's not true. Emotions are the worst enemy that every Forex trader has to face. Some people try to compare trading to a game where they have the market to beat and when they start losing the game they get on their nerves. Trading should remember what it is. Trading is not a game and should never be treated as such. The FX Forex market is an exciting activity with a mix of analysis and discipline. As a cool FX trader, you shouldn't be mad at the market, you shouldn't worry about your losing positions, you should just understand the market, rely on your analysis and follow the rules you set for yourself. This is the key to profits in the foreign exchange market. Emotions can spoil any trader's experience and that's why it's important to keep them aside. If you feel bad, don't make investment decisions. Are you feeling too happy and excited? Same. Overconfidence also leads to losses. Remember, making money on Forex is possible if you keep cool and put your emotions aside.
Stay up to date with current market events
Earning Forex largely depends on press releases and macroeconomic data. Therefore, being up to date with press releases is definitely a key element. Many movements in the market are the result of information flowing to it. This is also known as fundamental trading. Even if you are a strictly technical trader, you should not forget about the fundamental factors. Such events are the main driving force behind market movements. In other words, if you have a reliable trading strategy and all the technical indicators are pointing to a long position, check the Forex calendar anyway and see if the trade is in line with the market data. Even if the technical setup works like a clock, fundamental data can change the game
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