9 best advice to survive in forex market

Forex is the largest financial market in the world with for approximately US $5.3 trillion a day.

It attracts foreign exchange traders of all experience levels, from novices just learning about financial markets ,

to big experts with years of trading expertise.

So how to survive in such environment?

1-Do your post analysis:

Keep records of your trades. What was the rationale

for the trade, and what happened? It’s a fact that you will learn more

from your losers than from your winners. You can be right for all the

wrong reasons, but when you are wrong, try to figure out why.

2-Be a specialist:

Don’t trade a lot of currency pairs randomly. Pick out

two or three and find out everything you can about them in depth.

3-Be aware of fundamentals economics:

Technical traders often eschew the fundamentals. Granted, it can be hard to learn

how the fundamentals work, follow them, and make trading decisions

based on them, but the effort is worth it. Start out with some basic

knowledge of the fundamentals. A daily data calendar and forecasts

for the top-tier indicators can at least improve the timing of your trading decisions.

4-Remember that “It’s not the news but themarket reaction to news that matters“:

So if the USD does not rally on good news, it tells you that there is something additional working

against it just now.

5-win more than you loose:

In life, you’ll lose more than you win, and that’s okay but When it comes to the forex

market, you must always cut your losses trade.

Yes it’s hard enough to be right on a trade. You can keep a winner from becoming

a loser by letting gains accumulate and by running a trailing stop

to protect the profits. A number of academic studies have shown that

traders are often too slow to take their losses and too quick to take profits.

6-Don’t pyramid your position:

Some recommend adding progressively

smaller positions to a winning trade. This is called pyramiding.

It might work in some markets, but we don’t like it in FOREX trading.

7-Avoid using hedge as a strategy:

Some brokers now offer traders a chance

to hedge an existing position with an equal and offsetting

one. All a hedge does is increase the brokerage fees you pay

because of the bid/ask spread. Rather than hedging to cover a bad position,

just get out. Clear your head and move on.

8-Always accept your losses :

Don’t let emotions rule your decision. Don’t chase your

losses, and at all costs avoid doubling up to try to recoup a loss. Take

your loss and move on. Losses are just a part of the business. Expect

to have many.

9-Never meet a margin call:

Liquidate. You should never reach this

point on a trade if you manage your leverage and stops prudently. If

you get a margin call, you are probably risking too much. Reduce your

leverage and/or make your stops closer. Trading is all about capital