The forex trading world is vast and filled with numerous opportunities, however, it may still be a daunting and intimidating venture for some South African traders. For this reason, the following few tips are intended to provide traders with some handy information that they could potentially use to refine their trading and add a competitive edge.
Make sure you have realistic goals and expectations
Analyse and continuously review your goals and expectations as they may change as you gain more experience in the forex market.
Make sure that you have a trading method and strategy implemented that will allow you to achieve these goals. Every trading style has its own risk profile and each therefore requires a different, systematic approach to be successful.
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Make sure that your broker is the right one
There are many brokers out there that offer amazing, competitive trading conditions, however, the important thing is that you use a broker that is suited to your trading style, needs, objectives, and goals, and that your broker does not work against you but works to help you achieve all that you set out.
Make sure that your strategy is right for you
One of the most common mistakes is that traders are become too absorbed with finding a strategy that they become overwhelmed, or they tend to try too many strategies all at once.
Once you know what you want to achieve with forex trading and you have a clear mind in goal, make sure that you understand your risk tolerance and look for a strategy that fits in with the trading plan that you put in place.
Make a point of getting to know your strategy before moving on to a new one.
Education is not only for beginners; even experienced and professional traders are continuously learning. This is due to the consistent change in market conditions that present traders with new challenges daily.
Make sure that you analyse the news, trends, financial processes, and any tips or strategies that professionals share on social media and other platforms.
Follow the trends
There are factors that are driving the forex market, it is impossible to remain oblivious of the trends that influence the prices in the market, whether it is part of your trading strategy, or not. Keep up to date with the trends even though they may not affect your trading.
Know the charts
There is a plethora of trading tools available that allow traders to refine their trading and hone their skills, becoming a master at analysing the charts has never been a disadvantage, but it may provide some advantages that are often overlooked by others.
Analyse your own trades
The ability to admit that you have made a mistake in trading shows that you are growing as a trader, however, learning from that mistake by analysing the trading decisions that led to it, will inevitably benefit you in the future. Keep a trading journal and write everything down.