Forex trading secrets
If you adhere to these forex trading secrets, you are well on your pro way.
Every Broker is Not the Same!
Different brokers have varying rules and regulations attached to your trading account. Many have licenses from overseas which really doesn’t mean anything. Imagine if you wanted to withdraw your money and you're having problems; you would have to contact their overseas regulatory bodies to try and retrieve your cash.
Avoid Using the Dealing Desk at Brokerages
Traders will try to use brokers with the lowest spreads thinking that higher spreads will affect profits. But in many cases using the lowest spread broker will hinder as they often have a dealing desk execution, meaning an intermediary between you and the market will execute the trade on your behalf. This can cause problems. Oftentimes you will experience issues such as stop losses not being triggered, or trades not even executed at the price specified.
Always make sure you can execute your own trades quickly.
Do Not Rely on Signal Providers
This is one of the major forex trading secrets. There are many signal providers out there that claim to be able to provide you trades that will bring you profits every day. The majority of these signals don’t work and are a waste of your money and time.
There are very few providers which offer good fundamental and technical analysis, those that do are hard to come by, so always ensure you have the knowledge yourself.
Have a Trading Plan
When it comes to making trading decisions, having a Trading Plan can be the difference between profit and loss. It will assist your money management and will ensure your trading strategies are applied in the most effective areas.
A Trading Plan will help you plan long term trades and make the best use of whatever trading systems you employ.