Secrets are like Christmas when they are related to Forex. They bring the best news and a time of festivities when used properly. If you trade in Forex, these little secrets will get the best out of your business and earn profits. These Forex trading secrets comprise of the most important tips and tricks that you need to use if you want to avoid biting the dust in the market.
- Trade on Wednesdays– The middle of the week trading is more stable and predictable as compared to the beginning and the end of the week. Any movements in currency before or after Wednesday are very haphazard and chaotic. To avoid this clutter and confusion, trade on a Wednesday.
- Trade during Overlap hours– The end of the London Session and the beginning of the US session go through a period of overlap from 8 AM- 12 PM EST. In fact, if you stick to the middle path of 10 AM, you will earn the maximum returns from Forex. The currencies are very volatile at this time and if you move with the currency flow, you will likely earn more.
- Trust the Stop Loss– Putting a stop loss to all your trading activities would be highly beneficial in preventing any of your money goes waste in the market without giving any significant results. The moment you experience the smallest loss, take a deep breath and retreat from the market. You can then watch the market change trends and come back after a deep analysis to hit the profit button.
- Make a Trading Plan– This step is the predecessor of all Forex trading secrets. You must write down what currencies you will trade in. Also, you must specify your realistic expectations, your investments, your stop losses and the risks involved in the Forex trade you engage in. Unless you have a plan, you will invest all your money in one currency. More often than not, it will not give good results. In this case, you lose heart and money. A Forex trading plan is the most important document you hold in the market.
- Keep a Journal– Keep a record of all your investments, returns, profits and losses. This will help you determine your profit percentage and you are able to analyze your position as a Forex trader.
- Easy, Tiger– Don’t go to the market as the trader with the biggest investment. You have to be a smart trader. Start investing small and invest in various small currencies. This way you create a safety net for yourself and avoid any chances of losses. Even if losses happen, take it easy. Currencies change their movement and direction and you may not always be able to make profit.
Following the above mentioned Forex trading secrets will not only help you make profits from the market, but also enable you to be safer. It is your hard earned money; you simply can’t invest it blindly.