Investing in the Forex market can be a good way to make money. Pera truth is that it is not so easy to take on the financial markets. Must learn and implement good strategies to penetrate the safest way, today we leave some tips.
It is true that for many the forex market is very profitable, achieve win good money. However, like everything in stock issues, it has an index of risk to be able to assess. It is essential to know the basics if you really want to make money in forex, but remember that there is always the possibility of losing it.
You must not forget that the Forex is as volatile market as profitable as, as the value of currencies is in constant motion. You must be aware of this and be prepared for such volatividad move easily and not get distracted by emotions of cold decisions to will earn money instead of losing it.
In other words, if you opt for this type of investment will be a good decision. But if you prepare and analyze all possible variables, it will become a safer strategy that can take you to increase your capital. It is clear that knowing the basics to really gain by investing in the currency market.
Basic strategies that ensure high profitability in Forex Market
1- Basics to invest safely in forex (of course after learning how is the market) is to be a good observer because it allows you to study the market's advance and setbacks, to make a reasonable forecast in the unpredictable that is the foreign exchange market.
2- Accept that invest in highly profitable Forex involves reasonable time losses, but must be taken not placed in dangerous positions they may seem very profitable.
3- No complicated and buy or sell following the clear trends. we must not forget that a number of negative or positive results could be a coincidence. When they are repeated in a week, it is a marker. When they are exceeding this week,becoming a trend
In addition to these strategies, there is a series of actions that will be key:
A) Something that is not easy to avoid when there is sufficient experience: let not drag for good temporary results. Remember this and do not take emotional decisions, but rather rational.
B) Always keep in mind the volatividad of market: do not invest capital in one product. always remember that in the stock any results this assumed equal future results.
C) Especially for a novice in the forex market will be very important not to invest large amounts of capital, and never borrow for very profitable it is.
D) To invest in the forex market profitably and as safe as possible need to take advice from a broker or trader accredited. There are countless specialized international web and offers Forex brokers.
Tips for newcomers to the Forex Market
Thanks to leverage the currency market or Forex (Foreign Exchange) has come to the small investor and has become popular as an option for investment. This market operates 24 hours a day and moves large amounts of money, in fact, is the most active and liquid market there today.
As in any investment will be at risk and we have to evaluate them before you start investing. If you decide to take the plunge and dive deeper into the world of forex trading, here are a few tips before you start to invest.
The Basics of Foreign Exchange
This is very simple, but always keep in mind. Many people skip the basics and want to learn to operate directly in the currency market. This is a fatal error and that we can get quite expensive. If you're a newbie in Forex, the first thing we have to do is to learn and understand the basics.
The experience makes you Earn Money
If you expect to get rich overnight, you're wrong and you better not miss before you start and look for alternatives. Do not be naive, the experience in the world of trading is one of the most important factors. The more we operate in the market, the more efficient we become.
With the experience we get to see things that are not novices. The way to become a good trader is long, so you must be willing to learn and gain experience until you become one consistently profitable trader.
Beware the "Expert" (the famous Gurus)
The problem of the financial markets is a rookie that curdles a good week thought to be an "expert" or guru. Other "expert" that we can find on the Internet are those who beg us to buy your book.
These people may have failed as traders and now want to make money teaching other traders fail. These self-proclaimed experts tend to:
1- Release generic information that today does not work.
2- They say they are traders with lots of money and still trying by all means to put you his book.
3- claim to have invested 1000 euros per month and got 1 million.
4- skillfully use mathematics to look more professional.
Before blindly believe in one of these "experts" reflect and think things through. If someone had a magic wand with which to make money easily, I do not say, but other operators do the same and lose its advantage.
What seek such "gurus" are people who fall into the trap of buying his book (in which usually only found basic things, impractical and does not currently serve).
Make your own analysis
Further to the above, blindly following others will make us blind. Our goal is to become a successful trader rather than someone who copy or follow strategies of others. What do others helps us to analyze and reflect on it.
What we learn we can incorporate into our analysis in order to become a consistent long term trader. Simply copy others will not make us better traders, we will be good but not negotiating copying.
As an operator we have to develop a strategy and learn to analyze the market. Being able to make our own market analysis will take us closer to being a professional trader. Make your own analysis allows us:
- Be self-sufficient
- Learn to trade currencies
The myth of the demo accounts
For example, if we want to be professional footballers, we will not buy a football game to start our training. The same happens with the demo accounts that we provide most platforms that people use in hopes of becoming a successful Forex trader.
Demo accounts do not work for 2 reasons:
A) We offer a false confidence and make us to catch bad habits.
B) These accounts do not work like a real account in terms of speed of execution and other relevant factors.
On the other hand demo accounts they have the advantage of allowing us to know the basics about the operation in the Forex market. When you try to gain experience, we only operate in a real account.
We can start with little money and taking as we go fluidity and consistency gradually increasing.
Limited losses
It is the most important rule to follow is mandatory. You must be willing to assume some level of loss and put in there a maximum limit of money we lose. Thus if prices fall below that level alone we will have lost what we were willing to lose.
We have to play with these limits and tightening at the bottom no price too because small fluctuations may cause premature closure of our position.
We must also operate with a clear head. For example if we take a run of several days at a loss, it is best to rest a few days and come back fresh. The losing streak can lead to large losses and to make decisions that at another time had not taken.
Be prepared for the ups and downs
Each strategy has its ups and downs. There is no system that is 100% profitable throughout the year. So we must be prepared for fluctuations. As we said earlier, success is measured in the long run.
The problem is that many novice test strategy and if it does not work to them during the first week set aside and a new test. It is advisable to see how the strategy behaves in the medium / long term.
Keep it simple
There is no reason to look for a very complex and convoluted strategy. The best strategies are perhaps the simplest, which involved fewer elements when making decisions.
For most indicators, graphs, ratios, oscillators, etc. you use will not have better results, even more likely that your results are worse long term as many indicators can give you conflicting signals.
Specialize in a single currency pair
Following this, simple works. Needless to manage and all currency pairs and in this way we may escape interesting things. Focus on one currency pair allows us to concentrate all our efforts to understand how their trading moves.
If we try to trade with 5 pairs at the same time, learn to negotiate it becomes very difficult. We will have to learn the characteristics of each separate currency pair as each pair is unique. Each currency pair:
1- reacts differently to the news
2- move at different speeds
3- suffer different movements as slots
4- You have to handle in different ways as it remains an open position.
5- If you are new, start with a single pair. Once you are consistent with one, you can start to learn the characteristics of another.
Choose one installment
In the same way as above, it is always advisable to start trading using the same time horizon. This has several benefits:
A) It allows us to focus on learning one time, therefore, we eliminate the confusion that can lead us to operate at multiple time horizons.
B) In the FX market we just look at a single graph, thus improving the efficiency and quality of our analysis.
C) We avoid conflicting signals that can occur if you use different time horizons.
Remember that all this is to make everything easier. Once you go through experience can start your analysis more complicated.
simple graphics
Most novice accumulate as many indicators as possible within a price chart. They feel that the more indicators will fare better use.
The reality is that a larger number of indicators, the greater the degree of confusion as many are contradictory and give conflicting signals. Besides graphics become more difficult to read and have no clear signals.
I hope this information will be useful if you decide to invest in the currency market (forex market). Discuss and leave your advice for entrepreneurs looking to make money and want good information on how to invest in Forex.
3- suffer different movements as slots
4- You have to handle in different ways as it remains an open position.
5- If you are new, start with a single pair. Once you are consistent with one, you can start to learn the characteristics of another.
Choose one installment
In the same way as above, it is always advisable to start trading using the same time horizon. This has several benefits:
A) It allows us to focus on learning one time, therefore, we eliminate the confusion that can lead us to operate at multiple time horizons.
B) In the FX market we just look at a single graph, thus improving the efficiency and quality of our analysis.
C) We avoid conflicting signals that can occur if you use different time horizons.
Remember that all this is to make everything easier. Once you go through experience can start your analysis more complicated.
simple graphics
Most novice accumulate as many indicators as possible within a price chart. They feel that the more indicators will fare better use.
The reality is that a larger number of indicators, the greater the degree of confusion as many are contradictory and give conflicting signals. Besides graphics become more difficult to read and have no clear signals.
I hope this information will be useful if you decide to invest in the currency market (forex market). Discuss and leave your advice for entrepreneurs looking to make money and want good information on how to invest in Forex.
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