Build A Trading Strategy
Every Gulf FX trader has his or her trading strategy. Some traders decide to come up with their plans right from scratch or by combining individual strategies. But the baseline is to develop your plan and believe in it. You need to believe in the plan that you have developed in order to achieve desired results.
Ground rules to Develop Your Strategies
Filtering your inputs: Use the right source of advice and learning materials especially from the internet on forex trading.
Test and Modify your strategy: Developing your strategy is not a short time decision; you need to use a set of recommendations contained by qualified financial analysts and other experienced traders. You can try this using your demo account, try to modify them and find out what is happening. Importantly, develop your trading formula as this will improve your trading skills and lead to success.
Do not reinvent: Take your time and learn from experienced forex traders and analysts since they are still trading successfully in the market. Avoid following them blindly and try following their advice to see if it can work for you.
Focus on the Long-term trends: Some experienced traders earn good money out of the short-term market changes. However, to understand the trend of the market needs one to focus on the long term frames. Data from the short term trend has a lot of noises that it is unreliable to market forecasting.
Avoid sticking to a one-time frame: Using of different time frames is crucial to analyzing your market. You can quickly spot opportunities while looking at the daily data as opposed to analyzing hourly intervals. Still you can gain from the short-term anomalies regardless of whether long-term trend differs.
Fundamental Analysis: Forex market predictions depend on internal market factors including the number of market sellers and buyers. You need to study various economic factors such as interest rates, growth rate changes, and figures and then consider its effect on the forex market.
Gulf FX experts extensively carry out fundamental analysis and develop daily forex reports and recommendations. In the formulation of your strategy take these as suggestions and not rules.
You need not watch the market trends 24/7 but rather you need a stop at your open positions. Sell the orders during when the ask price is at a particular value. You can apply such strategy in unlocking your profits and limit your losses.
Before you make your position while online, decide and set stops. You can quickly find yourself keeping your place open once you meet the set limits. A stop will make you rethink your decision.
Check Currency Volatility
Volatile pairs of currency experience sudden rise or fall of currency. These sudden fluctuations imply that you need to do two things. That is;
- Limit your exposure by trading in smaller amounts
- Setting stops far away from the resistance lines and support.
Be Careful and enter the Market just before closure
Trading at the end of Friday is a volatile business. A lot of news gets in, and a large number of traders are closing their trading positions at Gulf FX. This situation usually happens during end month. You can quickly unlock your profits if you enter the market during such times.