The following article was written by professional blogger Lisa Smith. Lisa has written many articles in different niches including business finance.
The trade war is beginning to wreak havoc on global supply chains but for Forex traders it has made things exciting. While this doesn’t mean that you can execute a handful of trades and then retire to a tropical beach, it does mean there are opportunities to make money. As such, here are some tips on how to win big trading Forex.
Getting Started
You can’t trade if you don’t have cash and this is the first step to win big trading. However, it might be hard for some people to come up with the cash they need to make a splash. As such, they are left with a choice, start small and then ride the market up or other people’s money – just remember the latter does come with its risks.
Now, if you are a homeowner over the age of 62, then one option to get the cash you need might be a reverse mortgage. This would allow you to tap into the equity you’ve built up in your home without needing to pay back the loan until you no longer live there. As such, you can access the cash you need without needing to service the debt right away.
However, this is NOT free money. It is a loan and will need to be paid back eventually. This means that using a reverse mortgage to help finance your trading is a risky strategy but if you know what you are doing, then it might work out. If you want to learn more, then check out this link – https://reverse.mortgage/calculator.
Beyond, this you could also seek to get outside investors to team up with you; though this means that you would need to have a solid trading strategy which has already produced results.
Be Strategic
Yes, trading is a bit like gambling. However, the best traders don’t take unnecessary risks. Instead, they study market research, the data, and their models before executing a trade. It doesn’t matter the frequency, this is always the case and it is part of the reason why most trading algorithms are not long for this world.
Another thing to keep in mind is that the best traders – those who win often – only execute a handful of trades at any given time. These traders are not cowboys shooting at everything that comes across their path, they are strategic and make sure they have sized up the opportunity before pulling the trigger.
What can you do? For starters, you need to study the market and then develop an approach. From there you need to test it out on simulated trades before putting any real money down. As you can see this differs from gambling – at least in the way that most people approach it.
One of the more popular trading methods is called “price action trading”. While this approach is not revolutionary, it has stood the test of time – at least for now. At its core, price action trading involves being able to understand forex pricing on a chart and then to identify the most likely pricing patterns that repeat themselves. As you can see this is a simple method and it is one which most traders can easily become comfortable with.
If you don’t think price action trading is for you, then you will need to find a trading approach which you think will work. Without it, you will basically be trying to catch lightning in a jar and we all know how that ends.
Time is on Your Side
Trading on shorter time frames is exhilarating but the reality is that most traders eventually burnout. Also keep in mind, that high-frequency trading is the domain of astrophysicists and supercomputers. As such, mere mortals don’t stand a chance.
But this doesn’t mean that you should pack it in. Instead, focus your trading on higher time frames. While this means that you might be giving up some of the signals you get from lower-times, it also means that you have an opportunity to separate the signal from the noise. This can make or break you as a trader.
As such, focus your time and energy on daily charts rather than one-hour charts – especially in the beginning. This will give you the time to filter through the noise and pick a winning direction.
A Watched Pot Never Boils
Finally, stop looking at charts all day long! Remember you are trading based on the one-day chart and this means you have time to take care of other things in your life. In addition, chart watching can cause you to make mistakes including making bad trades and leaving profits on the table.
As such, get your head out of the computer and only look at the charts before the market opens or shortly after it closes – that’s it.