The top 4 critical points in forex trading
Learn To Trade Forex
Some are panicking and some are taking advantage of the chaos and making some serious money. Recession? Maybe. I got into forex trading around 1997 so I have seen a few major market crashes and have experienced the major crash in 2008 and made some serious money in some of the months. In order to learn to trade forex properly, please read this forex blog carefully.
Here are some critical points which will assist you in your trading:
Do not keep your trades open for long periods of time
The market saw massive volatility and it seems to be correcting at the moment, but nothing is fully clear. Nobody knows how the market is going to surprise us next and how the market participants are going to react. The market direction MAY HAVE changed, but there still is no confirmation. Therefore if you are NOT in a long term trade, don’t get into one. We are talking about the currency markets here. For stocks and other charted markets, different forex trading strategies apply. Do not get on the bandwagon of short selling just because you see the market bears reacting. Stop Hunting is the subject for the next 2 days so beware and this me talking about stocks it’s called portfolio rebalancing.
Learn to Trade Forex – Trade the tops and bottom of ranges and breaks and retests of the tops and bottoms
While trend trading might be tempting at the moment, as I said before, the market is not as clear as we would love it to be at the moment. You know my rules when in doubt stay out. My currency flows are all pointing to different directions when it comes to trends. However, one thing that seems to be happening is range. So for us it is simple we will trade the top and bottoms of the ranges on a daily charts with 35 fx trading Pips stop losses. From today onwards till the market gets back to normal, as soon as we are up 30 Pips we will move stops to break even and take advantage of the market short term.
Using high leverage and larger position sizing out of greed is a NO NO NO!!!
Since the markets are not really foreseeable, you have to learn to trade forex and try to avoid high leverage so if there is a sudden change in the market, you don’t end up wiping up your account. As we covered in the various articles on the Platinum blog, leverage is a double edged sword. While it can magnify your gains, it can at the same time multiply your losses as well. Platinum Traders should already know to use high leverage when they have at least 95% confident in the market direction. It is safe to say that no one really has confident in the market direction at the moment. The one thing I do not get on with any traders that loose their account within just one day I mean we are all mature here for an example you have a rule DO NOT RISK MORE THAN 1-2% how dare you even use more risk than this…If you are I suggest you should not be anywhere near trading as you will never make it blowing accounts happens once or twice when you are in your infant stages. If you are blowing accounts after 2 years of active trading.
Pay attention to stop losses on trade and trade frequency
While in normal times we are a fan of identifying a strategy and letting the markets run our position, this strategy is no good during current market conditions. Trading short term means you have to at least check your positions from time to time and be prepared to get out if the sentiment is not on your side. While you have set a stop loss for your position, you would still want to check the market sentiment, and if it is not strong enough to reach your target, you are better off just getting out with lower profit than staying in and hoping for the best. So, learn to trade forex by reading the blogs at Platinum Trading Academy and book a free consultation with Platinum senior traders to get expert advice today!