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TOPIC: 7 Forex Trading Rules That You Have To Follow in 2021

7 Forex Trading Rules That You Have To Follow in 2021 05 Jul 2021 05:42 #1

  • smdsajir
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Someone once said, "The key is to develop a case where the probabilities of the market going in your favour is greater than it going against you."

Obviously, it's true. But why losing our capital depending on our old thoughts of trading. Let's make the change. Let's follow some rules and make money in 2021--

  • When Forex moves, you move

In forex, gains may turn into losses in a matter of minutes. This is why; you need to learn how to protect yourself.
Let’s face it: There is nothing worse than watching your trade be up 30 points one minute, only to see it completely reverse a short while later and take out your stop 40 points lower.
You have to act fast – as fast as the markets.

  • Fewer emotions, more logic

Traders who cannot control their emotions will rarely make any successful trades and will quickly join the 95% of traders who lose money consistently.
Try to control the fear, the excitement, and the adrenaline. Relax and think logically no matter if you are winning or losing.

  • Technical and fundamental analysis go hand in hand

Don’t separate them, because both technical and fundamental analysis
can give you an idea of where the markets could be headed.
Fundamentals are good at dictating the broad themes in the market that can last for weeks, months, or even years. Technical can change quickly and are useful for identifying specific entry and exit levels.

  • Keep a balance – always pair strong with weak

When a strong army is positioned against a weak army, the odds are heavily skewed toward the strong army winning. This is the way you should approach trading. Keep the balance and the odds in your favor.

  • Being right and early means you are wrong

In Forex, it’s all about the timing. If the price action moves against you, even if the reasons for your trade remain valid, trust your eyes, respect the market and take a modest stop. In the currency market, being right and being early is the same as being wrong. Remember, when the markets move, you move but together.

  • Don't Add to Losing Positions

The difference between adding to a loser and scaling in is your initial intent before you place the trade. Adding to a losing position that has gone beyond the point of your original risk is the wrong way to trade. There are, however, times when adding to a losing position is the right way to trade.

For example, if your ultimate goal is to buy a 100,000 lot, and you establish a position in clips of 10,000 lots to get a better average price, this type of strategy is known as scaling in.

  • Hope for the best and prepare for the worst

Before taking a trade, you need to figure out what the worst-case scenario is and place your stop based on a monetary or technical level. Every trade, no matter how certain you are of its outcome, is an educated guess. Nothing is certain in trading. Reward, on the other hand, is unknown. When a currency moves, the move can be huge or small.

WOW! Amazing tips, right?

You are damn right. But side by side, you are lacking in getting a proper roadmap of trading. I found Pipswin is a great trading consultant with providing reliable market predictions. Around 85% success rate they belong. So, I rely on their dependability.

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