A basic guide for Forex trading
, Forex trading can be very active at any time of the day and the prices are constantly changing.
The Forex market, like other financial markets, has its fans and many traders are active in this market with different methods and strategies, but do you know the important points in Forex trading, and do you know how to earn this market profit and also manage your risk? In fact, a basic guide for Forex trading will help you to learn the general details of investment and activity in the Forex market and have more profitable transactions, so if you like the important points in Forex trading in simple and complete language learn for free, this article is prepared to help you.
Important points in Forex trading
It is interesting to know that Forex is a compound word derived from foreign currency and exchange. Foreign exchange is the process of changing one currency to another currency for various reasons, including business, trade, or tourism. According to recent reports published every 3 years by the International Bank of Enterprises, the volume of daily Forex trade was 5.1 trillion dollars on average. But in the definition of the Forex market, the Forex market is a place where various currencies are traded. Currencies are important for most people in the world, whether these people have recognized such a case or not because currencies must be bought and sold to carry out trade and foreign trade. A unique aspect of the international Forex market is that there is no central market for buying and selling, but currency trading is done completely electronically and outside the exchange, and this means that all these transactions are through networks. Computerization between traders takes place all over the world and there is no centralized exchange to manage these affairs. the Forex market is available 24 hours a day, 5 days a week, and currencies are traded globally in the prominent financial centers of London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris, and Sydney, and in almost every region. Sometimes they are traded. Finally, Forex trading can be very active at any time of the day and the prices are constantly changing.
You must know when not to trade
One of the most important trading skills in Forex trading is knowing when not to trade! You can usually give reasons why the price fluctuates, but that doesn't mean you have to make a trade. So you have to trade like a sniper, just wait for the best position and try to keep your focus along the way. In this section, we have mentioned 6 times when you should not make a transaction When you haven't done any analysis. When the price has crossed your entry point. When you want to increase your trading volume. When you don't know where your exit point is exactly. When the market has experienced extreme price fluctuations. When the type of market movement does not match your strategy.
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Observe capital management
A large number of successful traders in Forex trading believe that the key to their success is managing their capital. In fact, buying and selling in the Forex market is gambling and will bring us nothing but losses. A suitable capital management system can reduce the risk of your transactions and manage the risk of your user account. Fidelity to the principles of capital management gives you the possibility to carry out your transactions in a controlled manner and to focus only on long-term profitability and not to consider short- and medium-term events and fluctuations and be influenced by them. And don't act hastily under their influence.
Find your trading strategy
In fact, the purpose of trading strategy is to specify the framework on which your transactions will proceed based on its principles. It is interesting to know that this will increase your mental discipline and will make you know what you want from the market as a result. Therefore, to achieve a good strategy, it is necessary to evaluate and test all aspects of your desired investment.
Control your emotions in Forex trading
You should know when to step away from your trading desk and stop trading. Emotions such as fear, greed, and revenge cause irreparable problems for most traders. For example, revenge trading after a loss or overtrading will result in bigger losses that are much harder to recover from than our past losses. Therefore, every trader should have a daily or weekly stop rule and know when to stop and manage their emotions.