There are two types of Forex traders; the gainers and the losers. The losers are losing because they don’t know what the gainers know, and that is the secret of the game. What then are the secrets of the gainers?
1. Confidence: Before you can make money in Forex, you must be confident that you will make money. This will put you in the right frame of mind to take decisions that will generate greater profits for you. Do not exercise fear when trading or else you will always be on the losing side. Research shows that a lot of people make more money on demo accounts than on real accounts. Do you know why this is so? Many people trade the demo account with ease of mind while they trade the real account with fear.
2. Risk management: Due to the high rate of return on investment that is inherent in Forex, it is also a very risky market. Consequently, you should put up a risk management technique that will ensure profitability. Do not risk an amount of money that you cannot afford to lose and you shouldn’t trade more than 10% of the total amount of money in your trading account. This will give you the opportunity to open as many trade positions as possible.
3. Smartness: If you are not smart in this business, you might not make any money, which is your greatest desire. Being smart means using every information at your disposal to come up with the right market entry point. You can use fundamental and technical analysis to arrive at this but the smartest way is to use social networking to trade. You can find social trading features on the trading platforms of competent brokers.
4. Dynamic trading platform: The difference between gainers and losers can also be manifested by the trading platforms being used. There are platforms that enhance profitability while there are some that are designed to benefit brokers at the expense of traders. So, look out for the best platform with multiple features. You should trade in an environment that will increase your earning potential.
5. Timely trading: Knowing the best time to trade is one of the factors that guarantees profitability. There are times that you will earn big and there are times to stay away from the market. There are best times to trade certain currencies and by discovering these times, you are on your way to profitability.
6. Specialization: In Forex trading, you should discover the currency pair that works best for you and specialize in it. This will give you the opportunity to get all the relevant information about the currency pair in order to exploit it.How to trade smart in today’s Forex market.