Retail forex traders are growing in number as Forex trading is becoming more accessible to the public. If you are new to Forex, the first thing that comes to your mind is to look for some tips and tricks that you can use on your trades. This is something quite common but you shouldn’t get fooled easily with those success stories of random traders nor rely on those low-level guides that are also widely available online. But there’s nothing to worry about, we have compiled the top secrets of Forex that almost all new retail traders miss.
Create a Trading Journal
Take note: this is time-consuming and some traders might find it unnecessary because forex brokers nowadays have real-time trade records available for their clients. The problem with these records is that they don’t record everything, one thing that only successful traders truly understand. With a manual trading journal, you get down to the core of your entire trading efforts. You can monitor independent tracking, profits, and losses, margin usage, buying power and so much more.
Use Demo Accounts to Test Your Strategy
Before you lay your strategy in the real trading world, it is advisable to test it with a demo account. A demo account provides an environment that looks and feels like the one in real trading. The problem with the strategy that you have created on the paper is its effectiveness in the real battle. Your strategy might look good in the paper but it might actually compromise your trading plan in the real market.
Employing a good trading strategy is very important despite the number of newbie traders trying to enter the market without a proper trading plan. The result is frightening. They either experience a string of losses or lose their initial capital.
Fads and Trends – What’s the difference?
If you want to be competent in trading, you need to be updated with the latest financial news. But this won’t be enough to make an all-out success in trading. Clever traders tend to value the difference between trends and fads. Nowadays, traders tend to measure market development based on GDP. Moreover, they tend to give importance to policy changes such as interest rate revisions. But breaking down the macroeconomics of inflation is really the secret to success in Forex trading.
Keep Updated With Newswires
Newswires deliver information where you can base your decisions on trading. But sad to say, only a very small amount of traders pay attention to the news that creates a difference in the market. Because most traders put their focus on the technical analysis, the fundamental analysis is neglected and pushed back. Financial and economic news shouldn’t be ignored easily. This information is used by most successful Forex Traders in laying a step ahead of their competitors.
If you are eager to become a professional forex trader, you must be truly committed to your goal. Successful traders never cease to commit their time and effort to succeed in trading. They create a detailed schedule where they can follow on a daily basis.