3 golden rules to control Forex trading
Many people around the world are now looking to Forex as a safe haven in these fragile financial times when the future is a big question mark, as the Forex market has a unique benefit due to its size so that it is not affected by recession and achieve many profits in a short period of time, such as achieving the profits of the metal trade trade Gold oil trade trade.
Traders can continue to profit from their trades even in these difficult times, yet new traders are quickly overpowered when facing Forex sites, whether they are brokers, auto traders, or any other Forex service.
1- Not relying on luck
If a trader is looking to trade forex and intends to do it to be a serious endeavor, he must demonstrate that he is really serious by setting a plan, it should not be skipped about it without trading strategy and money management techniques, and it must be remembered that whatever the deal is, the trader must lose more than once and this natural.
The big question is – and this is what separates kids from men – how will these losing deals be dealt with? Will the trader close his account due to 5 bad trades? If the answer is yes then the trader will definitely do something wrong.
Regardless of the philosophy of speech, let us talk with numbers, and imagine for a moment that a trader has decided to open an account with $ 10,000, where he can now choose the amount of capital that will be risked for each trading deal, and it is clear that the greater the risk, the greater the possibility of profit.
Hence the famous saying “I feel no pain or gain”, so if a trader decides to risk 10% of his entire account in every trade, simple mathematics dictates to him that after 10 bad deals he will close his account, and now we can imagine that the trader did the same But he only risked 5% of his account in every trade, that he would double his chances, or cut the chances of a margin call in half.
2- Using the Bullet One tool
It is easy to plan a specific strategy, but it is difficult to use it to work and violate the feeling, as studies have shown that approximately 60% of Forex failures can be attributed to this factor, as people do not adhere to their plans.
So if the trader is largely emotional and tends to excite quickly or is known to make a foolhardy decision in high pressure situations, he needs to stay away and leave his method of doing his job, because this will be his downfall factor, so the trader then needs to do a research to make sure The plan that he intends to use fits perfectly, it may take some time, but skipping this step will definitely lead to a final failure, and this aforementioned tool will help in this matter greatly.
3- Use the leverage responsibly and take account
Anyone who visited the Forex site of any kind, undoubtedly saw the strong words and the margin around it, and at the beginning the margin and leverage are not the same thing, the margin is the trader’s money and the leverage is the broker, and there is another important and perhaps harmful point that traders should understand when it comes to Leverage, which is that while it increases the opportunity to make greater profits, it also increases the risk, and can easily lead to account destruction.