You definitely agree that Forex trading can lead to a loss as its high risk and high return. . Many people try in various ways to limit their losses in transactions but are often ineffective. Forex transactions are margin system so it is indeed very risky. Then, you need to very carefully calculate how much money in a transaction you should play. It’s suggested that 10 per cent of your total funds is safest rate.
Traders, who less care about the news usually experience more losses as they have inaccurate predictions. It’s very important to take news seriously as your considerations and find out how market response it.
It’s a fact, that a successful traders are they who rely on their own ability to know whether the analysis is effective or not, not because it depends on the other’s analysis. But you should keep in your mind that too confident is a very dangerous thing in Forex trading. Your perspective isn’t the only factor as there are too many influencing variables.
Other type of traders is who mainly rely on charts. Price movements are indeed tend to move on some patterns but the trend are still unpredictable since news or certain political and economic policies can be greatly influencing. So, it’s suggested to combine it with news variable as you can also combine it with using stop loss so you can limit your losses.
Also, there is tendency to use many indicators. Indeed, they will give you more signals in charts but the fact is you’ll certainly be confused as they give a distinct signals. It’s suggested for you to use only 2 to 3 indicator so you can enter the market easier. However that shouldn’t be a reason for you to use automated trading system solely since once again trends can change anytime.
Many traders are too confident with certain trading robot systems so they do not intervene at all. Problems begin to arise when market trends change. If you decide to use any robot, make sure you control it periodically as it doesn’t work like human and sometimes ignore several important variables like news and policies. It’s better for you to place automated system as your instrument not your boss.
In the end, there is no an absolute way nor an easy way to trade in Forex. However, by consistent learning, you’ll experience a better result in your trading progress, further, your profit.