It is necessary to open and close trading positions on various currency pairs according to certain rules. You should not start the trading day if you have negative emotions or fear of losing your deposit. Psychological factors only interfere with correct trading, so it is better to wait for your own condition to stabilize. First, you should study the list of clicking on the link and choose a reliable broker, and then you can study the basic rules of trading.
- The first and basic rule: in order to make money you have to buy currency when it is cheap and starts to go up, and to sell – on the contrary, when it is at its peak and is about to go down. See how this can be easily explained by the example of oranges. Let’s say oranges are being sold at the market for $10. You bought 10 pounds of oranges and paid $100 for them. However, you didn’t eat the fruit and decided to wait to see what happens to the price next. An hour later the same oranges cost 15 dollars, so you decided to sell the ones you bought for more. Now your proceeds are $150, and your net profit is $50. Approximately the same happens in the Forex market, only instead of oranges there are other currencies: euro, yen, pound, franc, krone, etc. In any case a trader earns money when he opens a buy trade in an uptrend (when the price is going up) and a sell trade in a downtrend.
- Rule number two: open a deal at the right time. There is such a thing as a trend, that is, a steady price movement up or down. Market trends periodically change each other, and the moment when the trend reverses is the best time to open a position. It is best to open a position at the beginning of a trend but not at its end, because then the market mood can already start changing and, for instance, if the currency was selling before, they might want to buy now and you just might not have time to take your profit on this trend. It is better to use trading signals or technical indicators to correctly determine the moments for opening and closing a deal.
- Rule three: do not invest all of your capital in a trade at once. Sure, you can be a very professional trader, who makes very profitable deals, but do not forget that the market can be unpredictable! Don’t risk too much, because if you spend all your deposit in a trade, which can be unsuccessful, you will not be able to get your money back on the next trade, that is, to make a new trade, the profit of which will offset the previous loss. So take your risks wisely and be careful and focused!