How to Play Forex Safely
How to Play Forex Safely - Work into the world of forex trading is actually not a difficult thing. It's just that many people do not understand how to trade safely so they make a lot of mistakes.
How to Play Forex Safely - Work into the world of forex trading is actually not a difficult thing. It's just that many people do not understand how to trade safely so they make a lot of mistakes. It is undeniable that the motivation to start trading is to get big profits. However, it should also be noted that the risk of losing forex trading is as great as the profit. This forex trading is like a double-edged sword because the ratio of profits and losses is the same. Then how to play forex safely?
Learn the basics of forex trading first
Do not know, then do not love. That's the right term for forex trading. You have to learn the basics of forex trading in order to find profit gaps. Never trade after reading an article or two about forex. Learn first trading techniques, various terms in trading, and also the platform for trading. Even after you have gained enough knowledge, don't jump into the world of trading right away. Start first with a trading simulation with a demo account to analyze trading techniques.
In this demo account, practice various trading plans and strategies from the simplest to the most complex. Do it repeatedly until the average win is stable. If you are already fluent with a demo account, you can start trading by choosing a trusted broker.
Choose a trusted broker
Forex trading is not limited to one particular area. This means that forex trading can be done cross-country or international. This blurs the boundaries of forex trading so you have to be extra careful when choosing a broker. Not a few people are deceived by fake brokers because they are not careful in choosing a broker.
To avoid this, you should choose a trusted broker. Even when you choose an international broker, make sure that the broker is compliant with the forex trading regulations in their area.
Choose the right strategy
The mistake of novice traders is to be impatient and want to immediately get a big profit. Whereas in forex trading, choosing the right strategy is the main key. Forex trading strategies also don't need to be complicated, you can choose a simple strategy. Most importantly, you must be able to read candlesticks, price action, and understand the indicators used.
Understand risk management
Many novice traders only focus on strategies to get profit and forget about risk management. Strategy in forex trading is not only about getting profit, but also how to reduce the risk of loss and how to survive even if the strategy used is wrong. It should be understood that in forex trading the potential for profit is as great as the risk, so both must be considered properly.
Start trading small
Maybe you have started to get trading offers from a sales broker with a large nominal capital. With the hope that if the capital used is large, the profits will also be even greater. In fact, if you understand forex trading well, starting trading can be done from a small capital first. Even though you have learned to trade with a demo account, the reality can be different when trading for real.
Believe it or not, when trading for real there is a feeling of fear of losing, wanting to immediately get a lot of profit, and so on. You can control this feeling by starting trading with small capital first. If you still lose with a small capital, is it possible to immediately make a profit with a large capital?
Keep daily trading records
Since trading strategies can vary, you should keep a daily trading record. That way you can keep track of what happened with day trading. You can write down the trading date, trading technique, profit/loss amount, and also what you learned from the trade.
Focus on one currency first
Maybe after you choose one currency, you see other currencies as more promising. But avoid switching from one currency quickly. If you want to be adept at reading market movements and market characteristics, you should focus on one currency first. That way you will have the ability to read the odds well using the currency.
When entering the world of forex trading, the urge to bet is great. However, the healthy and safe way of working forex is not a gamble. There is a strategy to be developed and a process of studying market movements. Don't be desperate to trade with large capital and then hope to get an unpredictable price jump.