Topic: Things to Do before Starting a Trade: A Tutorial
The foreign exchange market or the forex market or the FX market is the largest financial global market. And everyone wants to make money in this market. But it is not so easy to trade in this market. In a research, it has been found that with a complete wrong mindset, most traders start their forex trading. In this case, the trade definitely ends with losing a lump of money. It has also been seen that the novice traders as well as the experienced traders cannot focus on the right things from the starting to the end of a trade.
As the foreign exchange market is the largest financial market in the world, it is highly volatile. Daily turnover in this market is more than 3 trillion dollar. It is open for 24 hours a day and 5 days a week. The volatility and the easy accessibility are the reasons that people want to trade here (better to say people want to know how to trade and make money in this market).
The below article is about what you should do before starting a trade in the foreign exchange market. This article can be a mini tutorial for you to understand what your basic steps should be before starting trade. This tutorial will definitely clear a lot of confusions from your mind. It will also clarify how to trade and get profit in the foreign exchange market.
Always remember that the basic step before entering any trade is to be prepared for the trade physically as well as mentally. Before entering the trade, make a forex trading routine and maintain it strictly.
Once you are prepared for executing a trade and have made a trading routine, it is the time that you need to be patient to spot a high possibility of price action trading set up in the market. You need to act by keeping some necessary points in your mind.
At first, calculate your currency and then place your stop loss. The result can be most pathetic if you place your stop loss that is based on your greed. Make strategy before placing your stop loss. Remember, if you are trading with bigger position, you should never place your stop loss too close to your entry.
Trading is nothing but a game. There is win and loss in every game, hence you need to have the mentality to accept the fact that you can lose the trade. If you are mentally prepared with a neutral view that you can win or lose the trade, then it will be easy for you to be more confident during the trade. This is a fact that any experienced and confident person can also have chance to lose a trade. So don’t be overwhelmed if you lose it or win it.
Always give more time to research and less time to trade. This will help you to know the market condition more clearly. This is a trade, not a bus that you can miss, so don’t be in a hurry. Be patient and notice everything that is happening in the market.