dollarbreeders
Source: CAPEX Global Forex Broker (za.capex.com)
It is possible to have a few lucky successful trades in the Forex market. For a beginner, the Forex market can seem complicated and scary. After you have acquainted yourself with the basics of the Forex market, it is time to start trading. If you have not yet learned the basics, CAPEX.com Global Forex Brokers has a curated Forex academy that gives you a step-by-step online trading course.
Source: CAPEX Global Forex Broker (za.capex.com)
CAPEX.com Forex broker provides you with a daily timeline for significant trading sessions in key global cities. This timeline is important as it will guide you on when the market is highly liquid and when it is prone to volatility.
Question 4: Can you accept the risks that are involved with Forex trading?
Anyone who tells you that Forex trading is risk-free is lying to you! The volatility inherent in the Forex market provides an opportunity for profiting but also presents a risk that could wipe out your investment. Therefore, when you are making a trading plan, you should consider risk management techniques. If you are not familiar with risk management measures, CAPEX.com Forex broker has a range of risk management measures that you will find helpful.
After you have answered these four questions, you can start developing your trading plan. Below are some elements to consider when developing your trading plan.
Elements to consider when developing a Trading Plan
#1 Must be grounded on sound research and education
Opening a Forex position should be an informed decision. Whether you are using fundamental indicators, news reports, or technical analysis, you should know with certainty what you are doing.
In technical analysis, you should know how the indicators you employ work. CAPEX Global Forex Trading provides a free educational tutorial on technical Forex indicators.
If you are using news trading and economic indicators, you must know how the market will potentially react when they are published. CAPEX.com Forex broker has a real-time economic calendar, an up-to-date Forex market news segment, and inciteful Forex market analysis to help you keep track of events that move the market.
#2 Well-established entry and exit points
An informed Forex trading plan will enable you to set exact entry and exit points for every trade.
Technical indicators can help you know when market trends are shifting. Using the economic calendar can help you choose the best timing of trade since the release of some data is accompanied by volatility.
Your Forex trading plan should indicate the type of analysis you will use, the timeframes for your trades, and the kind of Forex orders to incorporate in your trading.
#3 Proper risk management techniques
In the Forex market, it is possible to be completely wiped out with a single bad trade. To reduce the chances of this happening, you must implement proper risk management.
It would be best if you used minimum leverage depending on your risk limit. Your trading plan should clearly state the risk level and amount per trade to protect your capital. Depending on your profit goals, you should use ‘take profit’ and ‘stop-loss’ to ensure you are protected even when you are not monitoring your trades.
CAPEX.com Global Forex Broker provides its traders with conservative leverage to prevent massive losses. Furthermore, CAPEX.com offers all traders negative balance protection.
Bottom Line
The first step to ensuring consistent profits in the Forex market is to develop a trading plan. However, whether you are a beginner or an experienced Forex trader, having a good trading plan will not prevent your account from being wiped out if you do not adhere to it.
Forex Trading
dollarbreeders
