The forex market is interesting for many reasons. You can make money trading foreign currency pairs regardless of how the market moves; you just have to move WITH the market rather than against it. You also have multiple currency pairs and high market volatility most of the time, which mean there are more opportunities to make money here than in other financial markets.
Forex trading is not without its challenges, but there are more resources to help you master the market today. In this article, we are going to focus on the trading secrets that will help elevate your trading experience and make you more profitable. Let’s have a look, shall we?
A Complex Chart Isn’t Always a Good Chart
I’ve seen traders slap 8-10 indicators on their charts to keep track of everything; I’ve even seen traders with more than that. A complex chart that shows everything may seem like a good idea at first, but it also adds more risk of missing important details, not catching market highs and lows correctly, and making other mistakes.
A clean chart is almost always better. Ask any professional trader about their charts and favourite technical indicators, and they’ll list no more than five indicators that they use. Many of them rely on common indicators like Moving Average (MA), Relative Strength Index (RSI), and Bollinger bands. You don’t need to overcomplicate things to be profitable.
Signals Are Great (If You Know How to Use Them)
A lot of so-called forex experts advise against using any kind of signals and inputs from other traders. They basically urge traders to make their own decision without relying on the opinions of others. This is partly true but avoiding signals and inputs from other traders entirely isn’t what you want to do in today’s market.
First, let’s look at the true part of this advice. Yes, you have to make your own trading decisions. More importantly, you have to know why you make your trading decisions. This way, you can evaluate your positions after each trade and improve your trading performance.
However, you can learn a lot from the way others trade, especially from those with years of experience in the market. This is why platforms like eToro are incredibly useful; social trading features on eToro grant you access to trades by other experienced traders. You can learn more about how to maximise eToro and the features it provides from the eToro tutorials on InvestinGoal. Read the resources on InvestinGoal and improve your trading performance.
A comprehensive trading journal, however, is the best-kept secret of them all. While professional traders rely on different technical indicators and sources for fundamental analysis, all of them – and I do mean ALL of them – have detailed trading journals.
Making a diary of your trades is a great habit to get into as a forex trader. You can review past trades, learn from your mistakes, and evaluate your positions in a more objective way. The journal also lets you delay evaluating your mistakes until after you get rid of the emotional effects of making a loss.
Use these secrets to your advantage and begin elevating your trading experience right away. The more you can utilise the tips and tricks we covered in this article, the more pleasant and fruitful your trading session will be.