Written by Hasan Tahir
Today's Forex Trading is a very risky play in a highly volatile currency spot market I have lost the money and earned also many times in currency market, being an experienced trader of currency trading I must recommend you to at least first prepare yourself for Forex Market otherwise you will be the looser like so many others. It is like you are driving a vehicle on a very busy road, assume if you won’t manage the speed and breaks and don’t keep the vision in your mind what will happen?
Similarly on the road of Forex trading you need to drive your trade with the control by the management of risk (how much you can bear), money (how much money do you think can save you today), Sentiments (what is the volatility position and how you do control your sentiments during a live forex trade)
Identify Forex Risk’s and Manage
Forex Risk occurs when using insufficient lot sizes without stoplosses on your trades. Mostly New traders make this mistake and they don't use a stoploss at all or if sometimes they use don’t consider the limits weather it is very wide or very narrow. If you are not putting the Stoploss It means you are allowing the market to go against you. There are so many ways to recognize where to put the stoploss and what is the limit where is support of the market.
Money Management for Forex Trader
Money Management is one of a very important factor in forex trading. Mostly new traders do the mistake and get hurt by the greed starting more number of lots or the big size of the lot this blunder get them out of the market and mostly lose their equity. There are many ways of money management take it very simple and manage your account like your pocket. Take low risk to get more learning and earning.
Forex Traders Sentiments.
Forex Trading is also playing with your sentiments. You will be thinking why new forex traders take risk?. And why they don’t manage the money if it is that important?.. so dear because Mostly Forex traders in Pakistan get indulge with their sentiments. A machine can trade very well than a human in Forex market. Controlling you sentiments are very important don’t be in those who doesn’t take losses or don’t stay in those who always open their doors to take loses.
This factor is very important look if you will trade on demo account the experience will be entirely different than the live account. To control your sentiments you have to start money management and risk management but how!! This is also a question.. Don’t spent more money spent little money and think that money you spent is the cost of play the game of Forex trading.
I must say driving is also nothing but the management of speed, break, steering and everything which is related to vehicle and the road. If you are in learning phase it is very simple but on the road to get expertise you need to practice driving! driving and driving. So in Forex trading market you need to practice and open your Forex trade trade & trade.
On the road you often see speed breaker which compel you to reduce your speed for the sake of vehicle and yourself. But in Forex market you have no way to find any speed breaker you have to study the Forex factors below on daily bases.
- Forex Market Fundamentals
- Forex Market Technical’s
- Forex Market Alerts & Signals
- Forex Charts & Graphs
- Forex Daily Reviews On Each Currency Pairs
- Forex Articles
- Forex Economic Calender
- Experienced Forex traders behavior ,
Said factors study will and your Forex Broker Info will lead you to concentrate over the trade and you will find the true market support and the resistance in your mind. Forex trading is an ongoing process of managing your risk, money and sentiments by your own thoughts.
Your comments will let the Article more refined so that forex trader may get the advantage of your experience.