There are list of traders who make money or lose money. What are the factors on which traders lose or make money? Commonly 95% lose their money and just 5% make a profit. Below are some basic forex trading tips online.
What 5% do to make a profit? And what others do who lose? Both questions needs a deep analysis on their own, but here I discuss 5 forex trading tips online that lead you in the right direction in your journey for making money profitable. you can also take the forex expert advisor.
- Make a goal and define a strategy:
Understanding you trading goals because most people really don’t have a plan. If you have a goal than you can look for a trading method and understand it. So this will help you to make you goal.
But make sure the trading methodology you chose fits with your style. About your style there are many questions that arise like what you want to trade, comfortable with this methodology, good risk management, a trend trader or a countered trader?
These questions are worth deciding and after that make a goal. Than you can make the market effortless and profitable trade.
- Top-down approach with time frames:
Take a top-down strategy always whether you are a ay trader or long-term trader. Top-down approach is the approach where you start with higher time span and go down like your trading chart.
Sometimes traders lose because of making decisions of trading only in their trading timeframe or single time frame.
For good trading, it’s better to analysis multi time frames.
- Test your strategy:
Don’t execute your strategy without testing. Trading is full of risk and probabilities. You only get profitable success in trading if you test and validate your strategy. You will be confident in trading and stick to your plan.
It will helps you in your trading setups and patterns. You can gradually get experience and skilled in live trading.
- Make a trading plan, Stick to your plan, and a journal:
Plan your trade first than trade your plan.
Almost every new trader doesn’t have an exact plan for trading but actually, it’s the important step. And some are traders, who have a plan but are not going to stick to it.
After making an exact plan, make a journal, and record every trade of you. This journal further helps in the future so you can take better result from your trading. You are a trading coach of your own, it helps you to resolve the errors when you lose in trading and get a better solution for future trading from money-making trading.