How we can get success in forex market? Forex trading is very accessible, interesting, lucrative and gives aspiring traders plenty of chances to learn. But unfortunately, too many individuals fail to be successful traders and do not attain good results from the FX marketplace. In reality, a startling 80% of Forex traders end up either losing money or quitting the market.
If you’re looking for ways to get success in Forex trading, then here are three strategies you should be using: stop losses, technical analysis and price action. These three methods are not commonly used but have the ability to increase your profits by a substantial margin. Here’s how:
Stop loss
A stop loss is a predetermined amount an investor controls during any specific trade. This is utilized as an indicator to prevent any loss in case the market continues to move against an investor’s position. For example, if a new trader decides to open a live account in the forex markets, he/she may be willing to place a stop loss of five percent on all currency pairs.
This will ensure that if the market continues to drop, they can absorb the loss and protect themselves by not making any trades. Of course, it is possible to set much larger stop losses, but it’s recommended that you stick to around four percent for demo accounts.
Technical analysis
Technical analysis is often misunderstood by new traders. The meaning of this strategy is simple: An investor who places a bet with a specific time frame is using historical data to predict what the price of currency will do in the next few hours. For instance, if you believe the EUR/USD pair will go up in the coming hours, you can place a trade with a time frame close to the open of the market.
You are hoping that the price goes up at the opening of the day, so you know you can make a profit when it does. If, instead, the price moves down at the opening, you would then take a position opposite to where you are anticipating the price will go, so you can get out before it reverses.
Fibonacci support
Fibonacci support is another popular strategy utilized by many successful forex traders. A “Fibonacci support” is a technical analysis indicator that uses the Fibonacci formula to indicate the highest and lowest points of any currency pair in a trading chart.
Because the formula is used to calculate the slope of the high and low points, it is often times used to determine whether a currency should stay in a trading position or should be sold. The “Fibonacci support” function has become so popular because it is easy to understand and use; therefore, many new traders utilize this system.
Once you start learning about forex you will soon realize that it is not as hard as many make it out to be. In fact, many people can make a full time income trading forex. If you want to get started then you can either pick one of the many forex trading software programs that are on the market today, or you can learn how to trade manually.
