5 Things you should know to operate in Forex 2018 | entertainment art blog creative

• 1 # 1 When you know more, you do it better.
• 2 # 2 Do it yourself. Negotiation plan
• 3 # 3 Knowledge has no value unless you put it into practice.
• 4 # 4 It is better to manage your risks!
• 5 # 5 Trust - half battle
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# 1 WHEN YOU KNOW MORE, YOU DO IT BETTER.

Each person thinks of the Forex market in different ways. Some of them judge the market as a very confusing sphere, and think that trading in Forex is very difficult. In contrast, others think that trade is very easy and does not require any knowledge. So, who is right?

Actually, both points of view are wrong: the Forex market is not complicated and difficult, but at the same time all those who want to start trading need to have knowledge of the market in order to obtain profits instead of losses. Undoubtedly, this does not mean that, for example, only those who have economic education can participate in Forex.

Each individual can start studying Forex and needs to know the basic things to begin with. The most important thing is to learn to analyze the market situation and coordinate actions according to this situation. In addition to analytics, beginners must understand that even when they start trading they can always develop their skills, because Forex is not an area with limits in terms of progress, so every day it is possible to learn a new thing, which has been It became quite easy with the help of the Internet through the company's websites and other merchants as well.

# 2 DO IT YOURSELF. NEGOTIATION PLAN

Trading in the forex market is a very risky process. Mainly, the reason why people lose at the beginning is that they do not have enough knowledge, they have not trained and studied the market, they do not know how it works. Of course, in this case it is easy to suffer losses.

You must have your plan of operations before starting to operate. Never follow someone's experience, because another person's strategy will not necessarily work for you. You'd better follow your own market views, risk tolerance level and develop your own trading plan.

 Your business plan should include the following essential aspects:

• Your objective in trade  : should be your objective or an expected result (in terms of profits) of your trade.
• Use of negotiation strategies that have proven to work in your business experience.
• Negotiation strategies , use of analysis based on which will decide to enter the market.
• Negotiation analysis , based on which you enter the market (open a negotiation position).
• Formation of your own risk management system:  you have to know in advance how much risk you can reach for any of your position and what proportion of your deposit you are willing to take under risk.

# 3 KNOWLEDGE HAS NO VALUE UNLESS YOU PUT IT INTO PRACTICE.

No matter how curious it is to the Forex market, you must understand that to have a better understanding of the market, you need to first market in the Demo account. Most broker gives you the opportunity to test your Demo account without any commitment. In this way, you can study everything you will need in future real operations. Therefore, open a real account and invest real money only when you feel confident that you are ready to enter the world of commerce.

 

# 4 IT IS BETTER TO MANAGE YOUR RISKS!

• It is not necessary to risk more than 2 to 20% of your total capital (deposit). Risk management will help you avoid suffering large losses in any operation.
• Use of stop losses. These orders are for the automatic closing of their positions at a certain price in order to limit losses at times when the market does not follow. Stop losses are essential for risk management and require careful study.
• Determine the size of your position based on how much you will lose if the loss stop has worked at the established price. This loss must not exceed a predetermined risk level.
• Control your emotions, which can nullify the situation and make your operations stressful and nervous. Do not forget that rationality is the key to commercial success.

# 5 CONFIDENCE - HALF BATTLE

The risky nature of trade has already been mentioned. Despite the different methods of analysis used by traders, everyone should know that the market can not be 100% predicted. Surely, people invest a lot of money in Forex, and sometimes it becomes very inefficient because the market can go in another direction, resulting in large losses.

Anyway, the most important thought when trading is to maintain psychological balance and be strong, because when you fall into depression, you may not make a rational decision. You just need to calm down so as not to act nervously and irrationally.