Lessons Learned when I started trading Forex - by (Shivkumar)
Like everyone I also came to forex market for a reason, ranging between solely for marketing Forex education to becoming a professional trader. While I have been marketing and giving forex education I started out as self-sufficient forex trader.
I spent months testing and back testing strategies that showed how could I make money. Just like many forex traders, apart from my full-time job, I traded forex trading to be my part time passion. My long-term plan was to make forex for a living and let my account compound.
Educating my clients with forex and trading was going hand in hand for couple of years and stopped trading. I spent the next couple of years working with traders around the world and continued to educate clients and myself about the forex market.
It played a huge role in my development and now sharing those experiences to help people become successful to execute trades.
From my years of above experience, I would like to share some things which I learnt : -
1) FOREX IS NOT A GET RICH QUICK OPPORTUNITY
Forex trading is all about how much money we are risking rather than the strategy. Like the old saying “It takes money to make money”.
Those who trade forex trading for living, trade slowly and increase their account to a level that creates sustainable income.
Trade with a strategy and limited use of leverage should give you return in long term.
2) LEVERAGE CAN BE A WINNING STRATEGY TO LOSE MONEY
The rule # 1 – Excessive leverage can ruin a profitable strategy.
The Mantra - The smaller the amount of leverage used, the smaller the swings (up or down) in your account equity. “We always talk about using less than 10 times effective leverage”.
3) USING SENTIMENT AS A GUIDE WHICH CAN TILT YOUR TRADES INTO YOUR FAVOUR
Market sentiment is defined as the net amount of any group of market players are long or short in any asset or market price at a particular time, a kind of collective emotion.
Example : - FXstreet Poll, IG Market Sentiment tools, and sentiment indicators.
4) USING LAGGING INDICATORS
Using some lagging indicators as below: -
Moving Average: to identify support & trend.
Stochastic: to identify trading opportunities.
Average True Range: to set stop loss.
5) FUNDAMENTAL NEWS
Reliance on fundamental news indicates a lack of faith in trend. “Focus on the price and you can ignore the news”.
Disclosure: The author holds no cryptocurrency at the time of writing.Register for Technical news and market update firstname.lastname@example.org || Facebook :- www.facebook.com/shivfxcrypto ||Instagram :- www.instagram.com/shivfxcrypto1 ||Twitter :-www.twitter.com/shivfxcrypto|| Whats App :- +91-70439-12326