Welcome to my today’s topic ” 5 HUGELY Effective Forex Trading Tips 2020.”
So, by reading the title I hope you’ve understood my today’s topic. Yes, I’m gonna breakdown 5 best Forex trading tips which will SURELY be helpful for you in this 2020 Forex trading market.
In fact, these are the same exact strategies that I’ve come to know that has benefited a lot of the market traders.
But before I get started, how about writing interesting facts about currencies in FX trading that most people don’t know about?
Here are the deets…
- Currency exchange is an ancient practice
- The modern foreign exchange began in 1880
- The US dollar dominates retail Forex trading
- United States “paper money” was created to fill up for coin shortage.
Now moving on to the main part of today’s topic. Therefore let’s breakdown the 5 best Forex trading tips of 2020.
Here are the deets…
Don’t ignore the psychology of the trade
It’s easy to see why trading psychology is an area that is often overlooked by traders, especially when they start.
However, experienced traders, who have spent years in the market, understand that traders who will continue to run for the long term are those who have mastered their trading psychology.
Trading is a very emotional experience. The cold reality is that you will control your emotions or they will control you. How you react and respond to those emotions will determine your long-term market success.
So take the time now to research and invest in your trading psychology if you haven’t already.
Don’t ignore fundamental analysis
Technical analysis is intuitive and relatively easy for each. However, fundamental analysis is a skill that is a little more involved and seems impenetrable at first.
Fundamental analysis is simply the ability to understand why the market is moving in a certain direction.
For some people, who see fundamental analysis as irrelevant, it is necessary to reflect why almost every institutional trading company invests a large amount of money to get an economic release and the analysis is sent to their trading desk in seconds.
The Bloomberg Terminal, for example, costs around $ 2000 per month. If technical analysis alone is sufficient for profitable trading, this serious trading company will not invest so much in useless tools.
Some simple ways to accelerate your fundamental analysis skills are investing in the news, reading analysts regularly, and getting 1 training: 1.
This will be an investment that will pay dividends in the long run and avoid expensive initial mistakes.
Don’t be overly optimal
One of the most important aspects of trading to understand is the use of appropriate and professional leverage.
The use of leverage can be said to be the most important aspect of risk management and proper risk management is a top priority for all professional traders.
Managing risk will be the single most important factor in your success or as a Forex trader.
You should pay attention to this lesson because this might be one of the factors that hinder your progress in the market because the use of improper leverage will make long-term success almost impossible to achieve on the top Forex market.
You cannot trade if you have no capital left. Conversely, using the right leverage will prevent you from destroying your account, maintaining your capital as a trader, and making you an attractive trader for high-income individuals to invest once you succeed.
Don’t ignore recent market sentiment
Sentiment analysis only understands the current market atmosphere. The market, like a person, is subject to a different mood.
Properly reading the market atmosphere is very important in generating profits.
Now, if you misread someone’s mood, you might accidentally feel the effects of someone’s bad mood. In the same way, if you don’t know the mood or market sentiment, then you might end up with a trading loss.
The market is a melting pot of emotions, vulnerable to wild mood swings that can be overly optimistic or very pessimistic. So how do you read sentiments correctly and stay abreast of the current market atmosphere?
You just have to read the last two market packages to see what the market’s focus is.
Does the central bank cut interest rates unexpectedly?
Is there really good or bad data?
Try to trade according to the market by looking at what is the market’s focus. This is a skill that needs to be practiced and you will get better as time goes on.
Don’t view technical analysis as the holy cup of trade
When traders embark on their trading journey, they will often have a fascination with technical analysis.
Almost all traders have taken part in the search to find the holy grail of the trading system. His thinking said, ‘If I can find the right system, I will solve it’.
Hours were then spent re-testing through charts, switching between systems week by week, all looking for major technology systems. Too often is a little success because the perfect technical setup fails and you wonder why.
Finally, traders who survive will realize that the market is a smooth price movement that reflects the economy throughout the world. Fundamental analysis and sentiment are the guiding lights on prices.
Technical analysis is just a means by which traders successfully determine and limit their risk in a way that makes sense once fundamentals are in place. In short, technical analysis is a great steward, but a terrible master.
In the end, both failure and success are a HUGE part of trading. In order to be profitable you’ll have to manage both these aspects wisely. One must learn from the failure and take the necessary steps for obtaining a promising career in the future.