Forex trading cannot be equated to a computer game because it is not simple and it is not 100% scheme for get rich quick. Before clenching to another promise that is mouthwatering of profits which are unlimited and no loss complete, the following is a list by experts at cfd trading South Africa of things you need to know about:
Examine fully and review your forex broker
The first thing is to always know everything regarding the forex broker. Brokers that are regulated are to be trusted more. You should read everything that might have been written in small letters especially going over the terms and conditions section.
You need to find out where the broker is located, making several phone calls and find out if they are going to answer. There are times when the customer support becomes more important than trading features which are available.
You will not have any holy grail
There is no automated software or getting million dollars within the shortest time possible that ill do all the trading for you while shopping for another H3, the indicators will not perform any magic for you to get the correct answer whenever you trade, no money without hard work, learning and planning. You will not get holy grail. You need to avoid fraud statements like:
- Being guaranteed to get 100% profits and that you will not get any losses with automated trading
- That you are going to make the first million within a week of trading in forex
- Every week you are going to make $5000
- You don’t have time to learn trading? Try the software
- Never lose again while forex trading
Who ought to be the bull?
The bull is a term which refers to a trader that expects the rise in price while the bear is a trader that believes prices are going to fall. They are nicknames which come from the way each of the animals strike; a bull is known to charge using its horns using a motion of upward while the bear is known to slash using its claws, while it moves downwards.
There is another trader type, although this one is less known- the pig. It describe the trader who is isn’t sure about what they are to do next and the consensus that traders have is that; bulls make money bears make money while the pigs are slaughtered.
Reviewing your plan for trading is necessary
There is a need of working out the details of your trading plan. You shouldn’t be surprised in case your plan for trading ends up growing with time. The more experience that you happen to get, the more detailed your plan becomes.
The following are some of the things that you have to consider:
- The entry price
- Plan B on how to get out of a trade which is not good
- Target price
- Maximum amount that you are likely to lose
- The time frames
- The size of the position
- The trading style
- Self-penalty for not having to follow the plan
- Factors which are important to support a decision for entering a trade