The Forex Like a Business
As a small business owner must do market research, decide which product or service will sell and are more likely to succeed. Then you must make decisions and see if they took were the right ones, in order to improve and get better returns in the future. Transactions in the Forex market is no different. As investors in the Forex, we have a lot of information available to us, but with little capital. Our priority is to preserve this capital, and we must expose the Forex market risk, only under the best situations. Both investors and entrepreneurs must learn crucial lessons and sometimes costly mistakes in the hope of becoming experts go long term. Then we will see some lessons, because our aim is to minimize losses and maximize the potential of our capital by placing low risk.
The trend is your friend: This saying is older than many people, but still valid today. A trend is defined as some of the key factors. Until recently, buyers flooded the market with the dollar depreciating and buying Euros while continuing a strong trend could be noticed in this PAR. Although this trend is slowing down or sometimes even for those people that are faithful to their decisions and perform transactions for trend were highly rewarded. Find the highest points and lowest for selling and buying can cost a lot of capital to the investor beginner, so many more times should follow the trend.
If the trend changes direction, we may have much chance to detect this change and take a stand. Until this is clear, do not try to choose the highest points to sell and to buy lower and let the experts.
Patience, patience and more patience: You must wait for optimal conditions and are more likely to succeed in forex positions to take. Not of those people who every day want to enter a position. Take a position before time usually results in just reverses and goes the other way and generates loss. Regardless of our analysis, we must choose our entry price in advance and wait until the market reaches that price.
Some experts say that market orders (Market orders: those prices where you go immediately to the position) are designed for impulsive, and entry orders (orders Entry: Those positions that are placed in advance, but are filled later, when the market reaches the price set) are designed for thoughtful and intelligent.
Changing the position and very large positions: As the shop owner never put the same product in all its shelves, a trader should refrain from this same temptation. The store owner will market any number of products identified, the most rotation, which will sell less, which are more profitable and which losses occur, and based on this information. Likewise, although he knows that there is a product that is fashionable, not only going to buy that product and stop buying the rest hoping to sell only the entire month. Likewise, should be the Forres. Everyone should be experimenting with different pairs, fundamental and technical indicators, and should not bet all dwarf position to know with certainty that 99% will go in their direction
These points above are some things that will help us be better at Forres. However, the first step to eliminate bad habits must recognize and take action to destroy them and replace them with good habits and generate profits. One way to accomplish this is through the use of a journal, where each position is pointed, the logic by which the entry, and when and which came out of position. You must also record the result, and any conclusion or lesson learned. Remember that we can only learn from our mistakes if we realize that indeed they are errors.
Forex is simple follow the trend and you will rich.
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