For decades mortgage fraud has cost British financial institutions hundreds of millions of pounds every year however with the recent buy to let boom and the subsequent sudden, unexpected financial crisis, losses due to mortgage fraud have started to be felt by private individuals who have invested money on the advice of mortgage brokers, investment […]
Over the years, Forex has caused heart-breaking losses to many inexperienced and disorderly traders. You need not add your name to that list. For all its figures, ratios and charts, forex trading is more of an art than science. Similar to artistic undertakings, talent is involved, but it can only take you so far. Successful traders sharpen their skills through education, practice and discipline. They conduct self-analysis to determine what fuels their trades, and learn to keep greed or fear out of the picture. Below are some crucial steps novice traders can use to perfect their art:
Consider enrolling in an online trading program
Before beginning a journey of online trading, it is imperative to join an online financial trading education program. The Academy of Financial Trading is an excellent place to start. This academy offers innovative, functional, affordable education, and assists traders on a one-on-one basis to make certain the course is tailored to their specific needs. Regardless of whom you are and where you live, this world leader in online trading education is committed to offering accessible, practical and effective education. They conduct live lessons globally, catering to local markets and all time zones. Since the entire program is online, you do not have to compromise work, sacrifice family life or other commitments to enroll. You can access the lessons with your PC, laptop, tablet or mobile device at your convenience.
Set goals and tailor your trading style to them
Blindly jumping into online forex trading just as a way to have a secondary source of income is a recipe for disaster. It is crucial to define the goals you would like to achieve, and then pick a trading method that supports those objectives. Keep in mind that each trading style calls for a different approach, and comes with its own risk profile. For instance, if you choose day trading, you cannot afford to go to bed with an open position. On the other hand, if you have finances that you know will gain from the appreciation of a trade over time, perhaps position trading is more suitable for you. Regardless of the trading style you go with, ensure your personality matches; otherwise, it will lead to stress and even losses.
Pick a trustworthy broker who supports your trading style
Shop around for brokers and deal with the one you feel most comfortable with. However, ensure the broker you choose offers a trading platform that accommodates your style of trading. Take your time to research the difference between brokers. Review each broker’s guidelines, and examine how he/she goes about making a market. For instance, Trading in exchange-driven markets is different from trading in spot market or over-the-counter market. Never fail to read the broker documentation. Moreover, check if the trading platform supports the kind of analysis you want to conduct. For instance, if you want to trade off Fibonacci numbers, the platform must be able to draw Fibonacci lines in the first place.
Be consistent in your methodology
As a trader, you will need to have a system of making decisions regarding execution of your trades before you enter any market. You must obtain the information you need to make a suitable decision whether to stay or exit a trade. Some experienced traders opt to analyse the underlying fundamentals of the economy or company, and then use charts to determine the most appropriate time to execute the trade. Others rely on technical analysis, and use charts only to time a trade. Whereas chart patterns provide shot term trading opportunities, fundamentals fuel the trend in the end. Whatever approach you choose, be consistent but also adaptive to shifting market dynamics.
Compute your expectancy
Expectancy is the procedure you will employ to find out how dependable your system is. The concept is simple. You go back in time and weigh all your trades that were winners against all your trades that lost. Then calculate how profitable your winning trades were compared to how much your loser trades lost. Go as far back as your last ten trades. If you are yet to make a trade, go back to the chart where the system states you should have existed or entered a trade. Determine whether you would have won or lost. Note down the results. Add all your wining trades and divide the result by the number of wining trades.