The Most Important Thing In Forex Trading
The forex market is a place where foreign exchange rates are traded and the forex market is the largest and most liquid financial market in the world. Forex trading can be done easily, all that is needed is an internet connection and a computer and software for forex trading.
Forex is traded in pairs, usually relative to the US dollar
(United States), for example EUR/USD, USD/JPY, or AUD/USD. Traders will benefit from forex trading if the prediction is right, this means when the trader predicts the value of the currency will rise and takes a long position. Finding profit from forex trading is not as difficult as imagined, it's just that many traders make mistakes just because traders are greedy. There are several important things in forex trading, namely:
Fundamental and Technical Analysis
In mastering fundamental and technical analysis. Understand fundamental analysis, both financial news, economic calendar, and other things that smell fundamental, because 70% of fundamental analysis is what moves the market. For technical analysis, at least master the trend, support and resistance patterns. Do not enter the market if the trader has not mastered these 2 things, because the trader will only waste money if the trader does not master these 2 things.
Market Tre
In trading, traders must be sensitive to market trends and study these trends. The basis of forex trading is to see market trends and then predict whether the value of the currency pair will increase or decrease. The key is to take a long (buy) position when the market trend is up, and when the market trend is down, you should take a sell (sell) position. Many traders do the opposite, even though without the trader realizing the value of the trade will tend to fall if the trader does the opposite.
Emotion
Psychologically, a trader who experiences a loss (loss position) will take revenge and become too ambitious. Traders who are too emotional like this will trade on a large scale and do not pay attention to trading capital.
Money Management
Next, don't forget good money management. Not everyone is good at measuring finances, this financial management is an action which in terms of making a decision between profit is taken or fallen. Without thinking about the risks that occur, and in the end they lose. Therefore, money management is very important.
The percentage of money management determines success in forex trading, which is around 70%. The rest is correct analysis and trading strategy. So, use 10% for trading, the rest use it to hold floating.
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