The following is a small series for foreign exchange trading novice to share foreign exchange trading novice ten trading strategies and methods, hoping to provide you with some help.
1. When trading, understanding the sales market is very important because it can help you determine your trading rules and also help you minimize the damage and get rid of the psychological issues of the initial trade.
Some novice traders have no such confusion, reflecting a lack of emphasis on the sales market.
What is understanding the sales market?
The first thing to know is who the players are in the foreign exchange market.
To sum up, the giants of foreign exchange trading are various central banks, banks, enterprises engaged in foreign exchange trading, fund investment, brokerages and some individuals with large assets.
2. Foreign exchange transactions are conducted in pairs.
Such as USD/yen, EUR/USD, CHF/USD, etc.
So you can look at unilateral currency lending information to determine the trading strategy.
For example, when the Fed raised interest rates yesterday, the dollar index rose sharply and dollar lending rose against most currencies.
Novice traders can seize this opportunity.
3. Risk and safe trading can only be managed by traders who have a good understanding of the definition of the securities market.
Managing risk is always a beginner’s headache, but if you can master the expertise, you can truly become a qualified forex trader.
Novice traders should pay more attention to their own psychological state, avoid random buying, ensure strict stock stop losses.
4. The next step is to analyze myself as a member of the financial system, understand my EQ, self-confidence and self-control ability, and then work out a suitable trading plan.
The simple way to understand it is to analyze your risk tolerance and determine whether you are a trader who wants to take a high risk and get a high return, or an investor who wants to trade safely and get a constant, relatively low return.
5. In addition, it is recommended that all traders invest in several trades in a diversified manner, rather than investing in a single trade for a large amount of money.
The basic principle, of course, is simple: “Don’t put all your raw eggs in a bamboo basket.”
6. With the technological innovation, note trading has been slowly withdrawn from the stage of history.
Most traders use mobile apps or similar special tools to trade, but a good trading essay can go a long way.
People mentioned the need for a trader to develop good trading habits.
7. There are a wide variety of frauds and techniques in the financial industry and investors need to distinguish between them carefully.
Choosing a controlled broker is very important.
Before you become a client, do a brief research on the broker’s background chart.
In addition, you should also understand the rationality and legality of investing in financial products before investing in projects.
8. Make sure you select the appropriate account type.
Small cash, light leverage, and mini accounts are best for novice traders.
9. Prevent confusion in transactions.
Doubt can be a big barrier to profitability.
10. Once you start trading, be aware of your mistakes as a forex trader.
This method can help you estimate risk and make stronger profits in the future.
For foreign exchange trading beginners, in addition to mastering some basic trading strategies and methods, psychological state is the most important part of trading, no matter what the result is, they will keep a good state of mind and keep calm all the time.
