It’s not that uncommon to hit a bad patch when trading foreign currency exchange. If you find yourself making a series of losses, just stop everything and take a break. Do something different, so that your mind can break out of whatever funk it’s in and get back on a highly creative track. Then, settle back down by examining all the main charts of the currency pair that interests you. Start with a monthly chart. Put a “Zig Zag” indicator on it, to pick up the main trend. Move on a weekly chart, layering on a “Keltner Channel” to pick up on volatility patterns. Now, examine the daily chart with a pair of 20- and 50-period weighted moving averages. Add a “Know Sure Thing” momentum oscillator to the chart. What’s going on should be quite clear, at this point.
A successful trading strategy is one that makes a profit 6 out of 10 times, at least. If this isn’t happening to you, go back to the drawing board – immediately.
Why You Have Been Unsuccessful With Foreign Currency Exchange So Far
Many forex beginners are not aware that there are free “demo accounts” available or don’t practise on them enough before they switch over to a “real account”. As a result, they have insufficient experience with the vagaries of the market (and, get caught on the wrong side of too many trades) or they use too high leverage ratios for longer-term trades (and their trade gets blown away by a price spike) or they don’t use stop losses (which could have cushioned the blow of a bad trade) – or, a combo of all three reasons happened. You could – rather uncharitably – also say that there’s also a high chance that they didn’t do enough research before jumping into the world’s largest capital market.
Widely Used Techniques To Help You Profit From Foreign Currency Exchange
Very short-term traders – aka, “day traders” – buzz in and out of the marketplace in short bursts of time, grabbing a bunch of pips and exiting the scene as fast as they can. The reason for this is that they’re fuelling their trading with very high leverage ratios (i. e., 100:1 or higher) that do not allow them to dally around, least they get fried by some whipsaw pricing action. Long-term traders are most interested in trends. Specifically, they want to try to find an evolving trend where they can slide into a position and safely surf it into the sunset. Since they might be in the market for days, they use relatively low leverage ratios (i. e., 30:1 or less).
Knowing When To Try A New Foreign Currency Exchange Technique
Several brokerage firms offer “perpetual demo accounts” (meaning that they don’t automatically shut down after 30, 60 or 90 days, like most “demos” do). Such a demo would be the perfect for trying out a new trading strategy or technique. In addition, there are a few charting websites on the internet that can also serve this purpose. For instance, both “tradingview.com” and “netdania.com”, offer sophisticated charting options – for free. Realistically, however, “if it ain’t broke, don’t fix it”. Translation: if you have a strategy that makes a profit 6 out of 10 times (with minimal losses during the other times), keep it and use it – again and again. If the world is already your oyster, why bother with new seafood?
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