ThinkForex: 6 Tricks of Forex Trading Skills - Forex Trading Platform

by think0825 on 2011-08-25 16:36:58

For foreign exchange, many people are unfamiliar with it. The fluctuations in the forex market sometimes even leave many veteran traders puzzled. Newcomers preparing to join the ranks of currency traders may have theoretically prepared themselves, but once they enter the actual market, they will find that the two words "risk" are not as simple as what is described in books.

After learning about the no-dealer operation platform at Thinkforex, I also became one of the many currency traders. Below, I would like to share my experience with friends who have just started trading currencies.

First move: Make good use of financial budgeting and remember not to use essential living funds as capital. To become a successful forex trader, you first need sufficient investment capital so that any losses incurred will not affect your daily life. Remember not to use essential living funds as trading capital. Excessive financial pressure can mislead your investment strategy, increasing transaction risks and leading to greater errors.

Second move: Cleverly use limit order trading. At key resistance levels, there are often two situations: true breakouts or false breakouts (testing the market and hitting stop-loss orders frequently occur), and false breakouts are more common. The establishment of limit orders can effectively prevent false breakouts, meaning sell or buy orders should be placed 10-15 points above or below key resistance levels. Since this point often disappears instantly, only limit order trading can capture it, thus highlighting the practical value of limit order trading.

Third move: Record the factors that determine transactions. Keep a detailed daily record of the factors that determine transactions, check if there were any event messages or other reasons that led you to make the trading decision, analyze after the transaction, and record the profit or loss results. If the transaction result is profitable, it indicates that your analysis was correct. When similar or the same factors appear again, the transaction records you made will help you quickly make the right trading decision.

Fourth move: Sell high and buy low. Look for the currencies of countries with close trade relations and stable domestic politics, sell high and buy low, and making money is certain. Currencies of two countries with close trade relations have the tacit understanding to maintain stable linkage. When Country B's currency drops below the most common price, buy on a large scale, and within half a year, your income will certainly be abundant.

Fifth move: Fast and slow in order. Buying and selling various different currencies have different operational rules. Sensitive currencies have a large profit margin, but they also tend to fall quickly and fluctuate significantly due to minor disturbances. The most characteristic currency of this nature is the Japanese yen, so operations should be quick buying and quick selling.

Sixth move: Learn to thoroughly execute the trading strategy and do not find excuses to overturn the original decision. The biggest fatal flaw in trading is when you start finding excuses not to cut your losses when the losses have expanded, thinking that the market might turn around immediately. While you continue with this thought, you won't have the intention to end the position where the loss continues to expand, and you will only lose your rationality waiting for the market to turn around. Please remember a simple rule: Do not let the risk exceed the originally set tolerable range. Once the loss reaches the originally set limit, don't hesitate, immediately close the position.