Trading on the international currency market is an opportunity to make impressive profits, but at the same time it is a very high risk. Therefore, in order to make profit in the long run, you must follow certain rules for trading.
And they concern not only technical issues, but also money management, psychological aspects and even the choice of a broker. Only an integrated approach will allow you to conduct a profitable trade, get a good result and limit possible drawdowns to the maximum.
What are the rules of profitable Forex trading?
So, let’s talk about the most important rules of trading in the international currency market, which allow you to increase the percentage of profitable transactions, maximize profits, reduce risks and spend a minimum of time on trade itself.
To begin with, for successful trading you need to understand the market. Knowing the basics alone is not enough, although you cannot do without it, of course. Study the information, analyze the trading systems, get more knowledge from day to day, and then you will be able to understand not only where the market will go, but also why it will happen.
At the same time, remember that knowledge alone is not enough, so you need to get and experience. Start trading on real accounts, but with a minimum of funds. In any case, you will lose your first deposits in order to gain proper experience. And let them be less, in the future it will be easier for you to catch up with the lost.
As for trading on demo accounts, then you should not waste time on them simply because trading on real and virtual accounts are very different due to psychological aspects. A person is afraid of losing real money, but is not worried about a demo account, so he can make impressive profits trading in demo currency, and lose all the time by opening a demo account.
One of the basic rules of profitable trading is to build your own trading system and capital management rules. Remember that you cannot enter the market with all money or a considerable amount. One transaction should take no more than 5-10% of the capital, and losses should be limited, depending on your money management, 20-40% of the total capital.
Don’t be scattered, think over your strategy, choose one timeframe and currency pair for yourself, follow the news on the financial market and constantly refine your trading system. Do not pursue profit, gain experience, and the result will come with it!