Beginner Forex Trading
Revenge trading occurs when a trader enters a new position right after a loss in an attempt to make money back immediately.
Anger, greed, and the fear of being wrong cause a trader to act irrationally following a loss.
Let’s talk about wicks in Forex trading, many things are believed about where to draw trendlines and support or resistance lines. Usually, the question is, “Do I draw the trendline along the wicks of the swing points or just along the bodies of the candles and ignore the wicks?” You will get different answers from different traders about what to do, and that is it can be so difficult for beginners to know what is right and what is wrong. In this article, we will break down the answer for you.
Once your focus becomes process-orientated, you begin to seek percentage growth of your equity. At this point, you think more on the level of a hedge fund or bank. I say this because banks and hedge funds’ primary focus is percentage growth for themselves and their clients. They want to be able to tell their clients that they have 2x or 3x their initial investment.
Trading the Forex markets is simple, but it is not easy. As much as it is a skill like anything else in life, it is obtainable with enough effort, time, and patience put into it. It is essential for Forex traders and any trader or investor to recognize their inherent skills and work on the skills that don’t come naturally to them.
A risk to reward ratio in Forex trading is how much you are betting compared to what you expect to make from any one particular trade. If there was one thing I wish I took the time to understand better when I started out on my trading journey, it would be the importance of a good risk to reward on every trade.
Forex charts will be your view of the marketplace. Your view will directly affect your perspective of the Forex marketplace. So before you go onto trading the forex market, you must decide how you want to see the forex market. Many people have already heard of Japanese candlesticks, but few beginners know there are two other main ways to look at price action in the Forex market.
Central banks are responsible for implementing monetary policies that manage inflation while promoting employment.
Dovish refers to a lawmaker or policy that aims to stimulate economic growth by increasing the supply of money (usually achieved by lowering interest rates). Hawkish refers to a lawmaker or policy that aims to limit inflation by decreasing the supply of money (usually achieved by hiking interest rates).
As Forex traders with the leverage we get from Forex brokers we are able to double, triple and even quadruple our trading accounts in a matter of days, this is of course with high risk positions and scalping, but under normal circumstances the outcome is still possible over a longer period of time if the trader is disciplined in following their trading plan and keeping their emotions and psychology balanced.