The Essential Bases for the New Investor In Forex Market

Now that you trade in Forex on the ground using the account by default for several months, for example, you have become a have a minimum of experience and developed a method to trade base  are ready in principle to effectively trade in Forex but you are still yet a new investor and you still lack experience investors. For this experts dedicate this article to the most important tips and basic rules in Forex, where the whole Investors are experts in the market that these basic rules in Forex help your success as a new investor and prolong your life in the Forex market.

d on a particular method in the analysis of price movements and this way proved to you effectiveness of the results of the good in the default account and a relatively long period. now you

The application of the preceding rules you should specify the amount of money to trade it and you have choose a Forex broker company and opened a microcosm account in order to start since now of your real journey in the world of stock market speculation of international currencies.

Through practice that you have made in the previous period you become well aware of the nature of the movement of exchange rates and thus became aware of the nature of the risks in working in this area.

There are a lot of rules that must be followed before and during the login for a deal, including:

First Rule:

you have done the order (Limit use of loss).

It is one of the basic rules in Forex markets , and the order of limit use of loss is considered the most important order. Because the reduction of loss order is the main line of defense to protect you.

No one believes  to expect all the time. you may  make the required effort in the  analysis but it may happen what makes the price movement start to contradict where you start the loss confrontation with every point in which the price contradicted you. This is something to be expected in a severe market volatility as a currency market.

Here comes the role of reducing loss order which will work to close the deal before you multiply your loss to a great extent.

Placing an order to reduce the loss before entering into the transaction is one of the professional trader features.

 The Discipline and strict compliance with data analysis and ignore the psychological impact is one of the most important factors for success in stock market speculation and therefore one of the main reasons for the physical high income that comes with this success.

Second Rule:

Do not lose more than 5% of your account in a single transaction.

When you decide to enter into a deal you should determine the point at which will enter a buyer or salesman of a currency . The amount you can lose in a transaction must be no more than 5% of your total account.

You know that the size of the loss depends on the number of points you lose on the size of contracts (croaker), who enter it. The more points you lose more than amount you will lose it. $ 10for each point in the regular account and $ 1 for each point in the mini account.

if the number of contracts which  purchased in a deal increase, the more profit in the case of profit will increase as same as loss. When you enter the deal you have to put the loss point so that it will not lose in this deal more than 5% of your account.

On this basis, choose the number of contracts and the price you will develop a limit order of the loss with it. If your purchase for 2 Lott will make you lose more than 5% of your account please buy 2 Lott but Buy Lott and one. Though the price that would put him to reduce loss order will make you lose more than 5% of the account - that happened - you bring the price of the entry point more.

To be not less than the difference between the entry price and the price reduction of the loss of 30 points, as we have mentioned.

Third Rule:

Do not enter in a deal unlike tendency Price

Trend is your friend, so do not enter in a deal which is in contrary of Trend of price.

Do not trade in the currency that you cannot know whether the tendency is bullish or bearish.

If the currency in which relay with a tendency both sides wait to begin to determine the direction of price movement up or down because the tendency profile means that the market is reluctant to raise or lower the value of the currency and demand equal supply, and usually it is long soon will determine the market trend is the movement of currency.

And even determine the market trend, wait no trade in the lateral inclination.

Fourth Rule:

Depend on the analysis in the entry and exit.

As we have said it is essential that you have reached in the analysis method which  has proven its successful in the trading by default account, before the actual trading.

So you depended  on "intuition" in your decisions when buying and selling it would only lead to loss after loss, even if intuition was true sometimes.

Human nature imposed on trader falling prey to psychological stimuli before and during the entering into a deal.

The most prominent of the psychological feelings which faces the stores are: Fear and Greed.

The two greatest enemies of traders by the agreement of everyone!!

So Do not run behind the hope of profit opportunities but make the  opportunity comes thee farewell analysis assures you that.

Fifth Rule:

Do not trade in the circumstances and inappropriate times.

The chart analysis and follow-up exchange rates require a lot of time and intellectual effort and patience.

If you are not fit physically, psychologically and intellectually for trading, it is better that do not trade on that day.

Do not trade when you are sick or in the case of psychological or intellectual abnormal, it could lead you to incorrect and hasty decisions.

If you close a bad deal, it is better to leave the trade for a few hours so you can restore calm psychological and intellectual not resort to the method , That may come back to you with more loss!, Because it makes you feel to enter into deals incautiously and impulsive. Loss in trading in the stock market is a reality inevitably regardless of your abilities and experience.

No one can be incredibly predictable all the time.

in the end , Extreme volatility of currency movement makes market having many opportunities and very dangerous at the same time.

whenever the proportion of the risk increase , the possibility of profit will increase as well as.

abide by the Previous rules before entering into the field of trading and after the actual access will enable you to be a winner most of the time and this is what all traders seeking to profit in the financial markets work.