Learn how to trade forex with minimal knowledge of the financial market. Join the percentage of successful traders! It is known that about 85% of forex traders lose money in their first three months, and in some financial markets this percentage may rise to 95%. Many investors say that this loss is the result of not having experience trading the forex market, however do not agree with that.
For me, the most important reason is your trading style that includes the strategy, money management and risk management, another important reason is also the excessive use of information obtained from the technical and fundamental analysis. Continue reading to find out how to start investing money in the major currency pairs and not lose money.
Tips to becoming profitable in a trader
Theoretically, all technical methods are correct. These methods differ in terms of accuracy in your results and this varies. You are warned, and then you can open or close positions as the information obtained through the windows. However, it is important not to build up your strategy in one indicator, it is impossible to always work.
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You do not need to have much knowledge in the area of analysis to have a percentage of 15% of traders. And also you do not need a lot of money for it. Although you can open an account with Markets.com to negotiate with only 100 euros, we recommend that you deposit € 500 or more in order to have more room for maneuver.
– Trading Strategy – The trading strategy is easy and provides high profits because it is based on the experience of many successful investors in Forex. Most of the time the market moves in accordance with a positive or negative trend, so there are several opportunities to generate gains. In addition to using the simple indicator of technical analysis, which are the support and resistance, also I like to use the key economic data to receive several pips in a short time.
– Money Management – First of all count your money and know the maximum you can lose in Forex. I say this because this is one of the most important when investing in financial markets rules, as it will remove all the stress upon you. Decide the expected monthly return for your money and what you will do with the profits to achieve its goals.
– Risk Management – Limit your losses, according to the maximum money you may lose by investing. To avoid losing all your capital, risk management is critical to an operation. Before opening each position think well and set an exit strategy. Create a daily and monthly limit losses. Before opening new positions, think the risk you are willing to accept, for example, risk € 1 to € 3 gain profit is a good strategy.