Below is a list of things I wish I had known earlier in my Forex investment days. Take advantage of this article now in your forex trading.
Many times when I sit in coffee and read my notes, I often wish that I could go back in time, return to the past to teach again, to repeat, to give myself the knowledge and experience. experience, sometimes even come back to… give yourself a few slaps in the ear for trading errors that can’t be fixed.
Unfortunately, there is no such time machine, so if you are new to the foreign exchange market, if you are still suffering from losses in the forex investment market, then what should you do? I am about to list them in this article Learn Forex Trading will be helpful to you.
Trading too much forex is very easy to do
Overtrading is a phrase you often hear, but do you know its exact meaning?
One of the biggest things I realized as I became a more experienced trader (earned more money) was that in my early years of trading, I was in a position of overtrading that I didn’t recognize myself.
It’s easy to justify the orders you enter by having a reason behind them, but how many % of orders are executed based on your trading method, what % of orders are based on things like “feeling”, “familiarity”, “belief”, …
You need to follow the method and follow your own conditions. If you have A, B, or C, then you can enter the order. If one factor is missing, you can still stand outside and observe. Never be afraid of losing opportunities, be afraid of losing money.
In short, too much Forex trading is when you execute an order that is not based on your trading method, your “check-list”. This mistake is very easy to make, especially for newbies, and the damage it causes is enormous.
See more: Trade Smarter with Demo Trading
(Most) zigzag indicator lines are a waste of time
In the early days, I spent a lot of time, effort, and money learning about technical indicators, not to mention the stress and headaches that followed. If I had known then that those indicator lines were mostly a huge waste on all fronts, the amount of time and effort I would have saved would have been enormous. This is something you will take advantage of immediately if you trust the non-profit shared content on this blog.
I understand the appeal of indicator lines, you will feel more secure, feel more “powerful”, and more “pro”, but they only make you more confused and ineffective.
Think about this: doesn’t every technical path come from PRICE? You should put all your focus on price. A lot of financial + software companies, a lot of simple lecturers (good at speaking), and a lot of abcxyz want to take your money, they draw up all kinds of complicated, majestic, sublime things (leave you alone). willing to spend money to buy products, buy courses, buy software, …).
Actually, as an individual forex investment trader, you don’t need that many things, our job is to stand on the shoulders of giants, follow them, and make money.
Short time frames in forex investment are very dangerous
We have many interconnected points, for example: making too many Forex trading session is often due to you observing low time frames (below H1), where the candles are constantly moving. , constantly inviting stimulation.
You see too many “opportunities” in front of you, and you think about taking advantage of the ability to continuously buy and sell to make the most money in the fastest time possible. Whatever the result, you have your own answer. me.
Many signals and candlestick patterns in low time frames are wrong. The candlestick pattern with a larger time frame is more reliable and more accurate.
While weekly candles and monthly candles have a very high reliability, if you trade according to these two types of candles. Then we (small individuals) have very few opportunities to enter orders (because each time we enter, there is not much money). You should focus on the day candle D1, candle H4 sometimes also gives standard signals. But if you’re still in the “newbie” camp, I recommend it. Just look at the daily candles until positive results are achieved.
A trade takes a long time, give it time to prove you are right
Most traders make the mistake of not giving their orders the time they deserve while forex investment.
You see the price is close to the stop loss point, so the candlestick is too bad. And you think about cutting losses early to save money. But as soon as you cut. The price reversed and changed direction to go up, in line with your initial judgment when entering the order. The same goes for profit-taking. How many times have you gotten 100% correct about what I just wrote?
I always advise you to let the market do its job. Turn off your computer as soon as you enter an order, don’t sit and watch the price move and pray. That is the best way to trade forex. You just have a lot of time to do other jobs and play other hobbies. No more headaches, fatigue, anxiety, or restlessness. Experience it yourself and you’ll see.
In forex investment, you cannot avoid losing orders
When Forex investment, there are always times when we win and times when we lose. Personally, the first day I learned to trade, I won a lot. But it only takes one or two losing orders to burn your account. Because I always try to avoid losing orders, the thought of “after cutting the loss, what if it goes up again” always holds back the mouse clicker, not allowing it to cut the loss.
Not only with negative orders but only when my orders make a little profit. My body started to itch to take profit, in my mind I was afraid of “if I don’t take it, what if it goes down?” urging me to quickly take profit. I just want the winning order rate to be as high as possible, even absolute winning.
Losing orders is the cost for you to operate your forex trading business. Without these costs, the machine would never run. You need to have the attitude that losing is very obvious, don’t avoid it, don’t show off. You don’t need a beautiful achievement sheet to show off to anyone. In forex trading, it’s only you and yourself.
By trying to avoid losing trades, you set your entire account on fire by not cutting your losses.
Control risk as disciplined as possible, and enter orders according to the correct trading method. And happily accept the market to cut losses and close orders if it is not a “beautiful sunny” day.
Simply powerful
Simplicity is what I always strive for, from life to work. The new day entering the market is not.
I thought that forex investment was an extremely complicated job. All kinds of news, all kinds of newspapers, all kinds of technical indicators, all kinds of abcxyz,… This is not a job for ordinary people. That I have to fight it day and night. Must observe the market carefully at every possible moment,…
Time has proven to me that the above is wrong.
See more: How to register ICMarkets broker account
Focus on the trading process, not just the profits
You cannot become a successful trader if you only think about money all the time.
Focus on becoming a good trader. Practice discipline and control emotions, practice observation skills. Read and understand the market, and try to completely remove your ego in front of the market,…
Do this job with passion, love, and true interest. Not just using it as a tool to make money. Only when you have such an attitude will success come. And right now, for you, money is just a bonus.
The more you think about money, the more you focus on making quick profits. It makes you fall into indiscriminate trading. Causing you to make dangerous forex investment mistakes that have only one goal: making the money in your account evaporate.
Epilogue
Today Learn Forex Trading posted this article, the main ideas are nothing new. Because in theory there are only a few bullet points like that. But we hope through a series of different articles. With slightly different approaches, we will “absorb” what needs to be practiced. And no more mistakes in forex investment.
Wishing you a successful trading day!
