Forex Hacks – Every Trader Should Know
Would you like to learn more about forex hacks?
You need to learn more about forex trading hacks in order to make money. This article discusses forex trading hacks that have the potential to help you.
First of all, you need to practice self-discipline. It is very hard to achieve success without discipline.
It is worth noting that you need to come up with a trading plan. Is it too hard to create a trading plan? Let’s start from the beginning.
You need to come up with your own trading rules.
Without exaggeration, knowing when to get in is vital for making money; nevertheless, knowing when to get out is equally important. To cut a long story short, you should have many rules that cover all aspects.
Fortunately or unfortunately, emotions play a very important role. However, you need to control your emotions.
It is desirable to trade in baskets. What you need to do is select a currency. The next step is to place the above-mentioned currency into one of two sections: the control section and the pegged section.
The first section is when the currency is on the left side of the slash of the currency pair – USD/JPY, etc.
What about the pegged section? Interestingly, the second one is when your chosen currency is on the right side of the slash.
The first move is to choose a currency to focus on. As soon as you do it, you create your control as well as pegged baskets.
What’s next? You need to do research on your chosen currency. Then, based on your research, you will get information on how your currency fares against the currency it is paired with. It is possible to trade both bearish as well as bullish moves simultaneously when you divide the currency pairs into baskets.
Forex hacks for beginners
Unfortunately, people don’t pay attention to various challenges.
You must know your risk limit.
Remember, you shouldn’t invest more than you are ready to lose.
It is worth mentioning that every trade comes with some risk. You must be prepared for any scenario.
So, if you are an inexperienced trader, it is better to limit risk to only 2% of your trading account. Over time, feel free to increase it to 5%. However, it isn’t recommended to surpass 5%.
We can’t forget about candlestick formations when it comes to forex hacks.
It is important to identify the top candlestick formations.
Did you know that candlesticks are used in the forex market in order to determine the high price and the low price? What’s interesting is that candlesticks are also used in order to determine the direction the market is trending.
Which candlestick formations do you need to take into account? One of them is Bullish Morning Star. However, you shouldn’t forget about the Bullish Piercing Line, Bearish Engulfing Candle, and others. Each of them indicates a market direction as well as makes a unique connection between the candlestick and its wick.
Discovering the above-mentioned candlestick formations on time helps you to get into the market at the right time before a serious movement and boosts your profit potential.
What you need to consider
It is better not to trade more than 2 or 3 strategies.
Why? As too many strategies overstretch your mind. You need to use three strategies as there are three types of market movements.
You need to use one for day trading and the second for swing trading or position trading. What about the third strategy? Feel free to use the third strategy for trading sideways movement.
You probably have heard about SWOT analysis. It is very important to conduct a SWOT analysis.
It is a popular tool that is central to any business or project. Interestingly, a SWOT analysis can also be applied to careers. So, it makes sense to conduct a SWOT analysis.
Why? Let’s find out!
It will help you to identify your internal strengths and weaknesses as a trader while also taking into consideration the external opportunities as well as threats.
Without exaggeration, it is very important to be consistent.
Remember, it is hard to become a successful trader if you don’t have healthy trading habits.
For example, you can monitor the forex market every day at the same time for trends. Furthermore, you can analyze support as well as resistance levels at the start and the end of every week.
Thanks to such habits, it is possible to save a lot of time. You will be able to spend more time with your friends and family.
Moreover, you should start documenting all your trades in a journal. For instance, you can record the final profit, etc.
The main purpose of a journal is to help you become a successful trader.
Forex brokers
Have you heard about signal providers?
There is no lack of websites that will claim to supply you with various signals. We shouldn’t forget about automated trading systems.
You need to remember that the vast majority of such websites, as well as automated trading systems, don’t actually work. As a reminder, most of them are designed to sell and not work.
There are good signal providers. However, it is very difficult to find one.
We also need to discuss one very important topic. You shouldn’t trust every forex broker. It is better to find a licensed forex broker. However, not every license comes with the same degree of trust and security.
People who aren’t familiar with the forex market may not be aware of the fact that licenses from offshore regulatory bodies can sometimes be almost valueless. So, you need to find a forex broker that is regulated by a well-known authority. For example, you can trust a forex broker that is regulated by the Financial Conduct Authority from the U.K.
Remember, it is way harder to take legal action against forex brokers that are registered in countries with little or no oversight.
It is worth noting that some forex brokers may serve various jurisdictions under offshore licenses. So, it is desirable to select a forex broker that also has a license issued by a European country.
Conclusion
As you can see, there are many forex hacks. Now, let’s take a look at the most important aspects once again.
There are many forex brokers. Nevertheless, you should be careful when it comes to unknown brokers.
Many inexperienced traders don’t know how to do many things. Don’t worry; no one was born with the knowledge of the forex market.
What you need to do is to ask for a free trial. The vast majority of forex brokers offer their trading platforms.
Even if a potential broker doesn’t explicitly offer a free trial, there’s no harm in asking the broker to allow you to test out their system. You need to select a forex broker that is user-oriented.
It is important to keep an eye on major financial meetings. Inexperienced and experienced traders should watch out for the Open Market Committee and the Humphrey Hawkins Hearings. Moreover, it is a good idea to read the reports that are published after the meetings. It is possible to learn various details about the forex market thanks to the above-mentioned reports.
Last but not least, don’t underestimate the importance of education. Unfortunately, many inexperienced traders choose to forgo the books and articles about the forex market and jump right into trading.
Why should you lose your own money when you can learn from the mistakes of successful forex traders by reading books and articles? We shouldn’t forget about videos as well. Moreover, don’t forget to read books about the forex market on a regular basis.