Quite often, we hear from beginners a fairly logical question “how to make money on Forex?” Answers to it will help to determine what and how to learn in order to become a more successful trader in the future. To deploy their own profitable activities in the currency market, a trader needs to:
- the ability to predict the dynamics of courses. After all, how to make money on forex without this? Today we have a sufficient number of analysis methods: the theory of chaos of Williams authorship, the approaches of Demarck, the analysis of candle combinations, the wave theory of authorship of Eliot, technical and fundamental analyzes. Studying them gradually, the trader will be able to answer to himself how to start making money on forex;
- the ability to correctly select the moment for entering the market, as well as closing open positions (trading tactics). It is not enough just to correctly identify the trend that is prevailing. It will also be quite important to make the right choice of the moment when you need to enter the market. How to make money on Forex, if when you identify a bullish trend, you buy at the very peak before the start of the rollback, and this started rollback “licks” your order. It is much more offensive that, not paying attention to the loss, you set the market direction absolutely correctly. And ultimately, after the execution of your order specifically, the market turned and moved in the right and right direction, but without your participation;
- It is necessary to comply with the rules of capital control. If you comply with them, the riskiness of transactions is significantly reduced. And the system allows you to avoid participating in a variety of financial adventures, allows you to participate only in those transactions where the risk level is minimal;
- How to make money on Forex, if you make emotional decisions? No way. When making trading decisions, be guided exclusively by cold reason. Emotional decisions are most often unprofitable and incorrect. This is the psychology of the trader.
Further, a little about the main component of success for each trader, namely, methods of analyzing the foreign exchange market in various conditions.
The main task of each trader is to correctly predict the future. What techniques have not been used for this by participants in financial markets. Here, not only quantitative forecasting methods are used, but also astrological, extrasensory, intuitive, etc.
A trader entering a currency market can be compared to some extent with a person who suddenly finds himself in a forest or in the ocean. And his future fate depends on how he can navigate the space that surrounds him, according to the location of lichens and mosses, in the form of anthills or in the stars. That is, whether he can get out and with what losses.
The most popular and widespread among modern traders are two of today's types of analysis, namely fundamental and technical. You can argue on the topic of which is more important and valid for a long time. Most still adhere to technical analysis. Because it is more simple to use as well as study.
Technical analysis is based on confidence in the fact that the market takes into account everything: those events that have already occurred, as well as the expectations of those participating in the market. Price movements are summing vectors of all influencing factors. Including those that have not yet been studied and do not have their own name, but already have some influence on price dynamics.
In short, the answer to the exciting question "How to make money on Forex?" Will be "Learn and work!". And no other way.
A source:
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