Forex speculation is a way to invest and make money from home. Every day is understood by more and more people from all over the world who have seen in the profitability and ease of operating in forex a way to earn money. While there are no magic formulas to win, there are some strategies and tips to gain in forex and improve day by day in our investments in the complicated currency market. You can now also https://www.amarkets.com/about-amarkets/regulation/, but before that you will need the right guidance.

These are some basic tips for beginners in forex:

Follow the trend

This is a basic advice to win in the Forex market. If the price is going up, buy , and if it is going down sell. It’s that simple in principle.

First we will have to be clear about the type of strategy we want to follow: short, medium or long term. And of course, know how to identify trends.

The trend is the trajectory that the quote follows in a period of time. An uptrend will have a graph with ascending and ascending minimum highs, and a contrary bearish, that is, descending and descending minimums.

Once the trend in the chart is identified, we will expect a regression in the currency pair to enter a good price in favor of the trend.

In very short term or intraday operations we can skip this rule to take advantage of rebounds. When a currency pair rises or falls disproportionately in a very short period of time we must wait for a corrective movement in the opposite direction that we can take advantage of to sell or buy using a high leverage.

Let the profits run and cut the losses

A common mistake among forex beginners is to wait for the trend to change when they are losing and to turn in their favor. This is the fastest way to lose money in a short time. On the contrary, when they are won, they immediately collect benefits, lest the tendency change and they lose what they have won.

Sometimes we will pull our hair for not having endured and continue earning much more, or because we closed a losing position just before the trend changed. But in the long run this rule will make us win in forex.

Set Stop Loss and Take Profit

Stop Loss and Take Profit are two tools that online forex brokers put at our disposal to avoid unpleasant surprises. Both serve to automatically exit a position when the pair reaches the limit we have set. As a general rule you never have to move a Stop Loss to avoid leaving a position. You should only move in the winning direction to tie gains.

Stop Loss:  It is set to close a position when the price reaches it. If we have purchased, this order is placed at a lower price than the entry price. If we have sold, the order to cut losses or Stop Loss will be placed above the price at which we have sold the pair.

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