Trading in currencies: why?
Below are the top ten reasons for an investor to choose currency market as his next major investment:
1. In currency trading, you can choose any style based on your preferences. To build your strategies, you can use five minutes charts, daily and hourly charts, and also weekly charts.
2. The best thing about the currency market is that there are tons of information available that will help you in constructing the strategies. The major information sources include high level research material, detailed charts, and real-time news. The great thing is that all of these materials are absolutely free.
3. All the information can be attained easily as it is a public property.
4. You can easily customize your lot sizes. This means that you only require funds of just $500 to get started.
5. Through modifies leverage, you can choose the option of either acting as aggressive or conservative.
6. Interest on trading can be calculated easily on the daily, weekly, and monthly basis.
7. With no commission scheme, your profit & loss will be the only indicator for win or loss.
8. There is no limitation of time. You can easily trade around the clock.
9. It’s your choice to decide either you will go for long or short.
10. You can only lose the amount you put in.
In this article, I am going to tell you about ten basic tips that are needed to build your strategies. All of these rules are designed after consulting with the expert traders so these must be taken seriously. The ideas and system presented a layer of years spent on observation on how prices move in the market. Through these rules, a trader can increase his chances of winning. Although no rule in this world can give you 100% winning guarantee, but we have already tested and we are assured of its working.
Top ten rules
1. Never allow any winner to take the position of a loser.
2. To win you need to use your logic and avoid impulse as it kills.
3. The risk should be kept at 2% or below. Don’t ever exceed this limit per trade.
4. Always trigger deeply, make your enter and exit logical.
5. For pairing, always join stronger with weaker. This way, the overall risk will decrease, and your portfolio will be healthier.
6. If you are on right track and still making early exit mean you are playing it wrong.
7. You must draw a line between being a loser and scaling.
8. If something is mathematically optimal, then it may be impossible psychologically.
9. You can predetermine risk, but the reward out of it will be huge.
10. Never make any excuse as that could be the first step towards your failure.
Some may call trading as a part of science, but in reality, it is a special art. Hence, in this world, no rule can be assured 100% of working. All these rules will work under various environments and will give you strength during your trading.