Forex Traders in India, Golden Rules to become Successful Forex Traders: Online Forex trading is the future of the world market; one just cannot avoid the fact that the forex online market has spread its arm in every corner of the world.
The impact of forex trading online is immense among Forex Traders in India.
While trading with the Forex, traders get an opportunity to trade currencies and commodities; the only thing which makes online forex trading different from other trading options is it’s 24/5 services.
Here, traders are free to trade 24/5; unlike other trading options, the forex market allows forex traders in India to earn more profit.
Understanding Forex online market has become essential these days as the world is changing rapidly. Many believe that Forex Trading online is the future of the world’s economy.
Forex online market is not yet legal in India; India’s market breathes under several SEBI guidelines. To trade with the Forex, traders and brokers have to follow the guidelines instructed by SEBI.
Online Forex Trading has changed numerous lives worldwide; some earn through the best online forex trading skills, and some earn with the help of their fate.
Forex trading is not a gamble to play, and the online forex market is an important concept.
We have created this webpage for every forex reader who craves to learn more about online forex trading and online commodity trading. Here, we will talk about the nine golden rules that some of India’s best Forex traders understood and earned millions.
Nine Laws to become successful forex traders in India
Understanding numbers, charts and ratios during trading is more of an art than a science. Artistic endeavours involve talent, but this talent will only take you far.
A good trader tries to sharpen his skills through his efforts and discipline. He self-analyzes his performance to see where his trade is heading and learns how to keep greed and fear out of the equation.
In this blog, we tell new people nine rules related to trading, using which they can improve their art in the best way. Here are some tips from experts, which will help you become more competent and profitable traders.
Law 1: Define your goal and then adopt a style of trading that suits your goal. Make it reliable that the style of trading you have chosen is perfect for your personality. Before you plan a trip, you must know what your destination is and how to reach it.
Similarly, the goal of what you want to achieve must be clear in your mind; after that, you should have confidence that the trading method you choose can achieve your goal.
Each type of trading style requires a different approach, and each style has a different risk profile, which requires a different approach to trade successfully.
For example, if you can trade with an open position, you can consider day trading; on the other hand, if you have money, you will think about the profit from trading in few months. With this, you can also consider what you would like to become as a position trader.
No matter what style you choose for trading. First, make sure that the style you have chosen for trading fits with your personality or not.
Law 2: Select a broker you feel comfortable with. Also, keep in mind that the trading platform that he provides to you encourages your trading style.
When choosing a broker, it is essential that the broker giving you the trading platform also allows you to analyze according to your needs.
The selection of a reputable broker is paramount and will help research the differences between brokers. You should know the policies of each broker and also know how they make their market.
For example, trading in the over the counter and spot market is different from the exchange-drive market.
In choosing a broker, you must read the broker documents carefully. Know your broker’s policies. Also, make sure that your broker’s trading platform is suitable for the analysis you want.
For example, if you want to trade on Fibonacci numbers, we are sure that your broker’s platform can draw Fibonacci lines.
A good broker with a wrong platform and a lousy broker with a good platform can be a problem. Make sure that you choose the best option for these two.
Law 3: Select a methodology and then keep using its application continuously. Before entering a market as a trader, you need to know how you will execute your trade.
You should know what kind of information you will need to decide whether to enter or exit a trade.
Some people choose the company’s fundamentals or economy, and then they use the chart to determine the best time to execute their trade.
Some people use technical analysis. As a result, they will only use charts at the time of the trade.
Remember that the basics drive the trade over the long term, while the chart pattern provides trading opportunities in the short term.
Whatever method you choose, remember that you follow it continuously and make sure that your methodology is acceptable. Your system matches the changing market scenario.
Law 4: Choose a longer time frame for direction analysis and a short time frame for entry or exit. What does the Weekly Chart indicate for a buying opportunity, and similarly, how does an intra-day chart indicate a sales signal?
If you take your basic trading instructions by weekly chart and use the daily chart for time entry, then make sure to do both.
In other words, if the weekly chart is indicating to you, then stop until the daily chart also confirms the buy signal. Keep your time-synchronized.
Law 5: When many traders look at charts in different time frames, they get confused due to conflicting information.
Measure your expectation. Anticipation is a formula from which you determine how reliable your system is.
You should come back in time and compare your won and lost trades. This will determine how profitable the trades were for you and how much the losers lost. Take a look at your last ten trades.
If you still have not made an actual trade, go back to your chart, where your system will indicate whether you want to enter or exit the trade. Determine when you gain and when you lose.
Write all its results in one place. Divide the total trades won by the number of trades you have won. Here is its formula:
E = [1+ (W / L)] 3P-1
Where: W-average winning trade, L-average losing trade, P-percentage win ratio
Example: If you made ten trades, six winning trades and four losing trades, then your percentage win ratio would be 6/10 or 60 per cent. If your six trades make $ 2400, then your average win will be 2400/6 = $ 400.
If your losses are $ 1200, then your average loss will be 1200/4 = $ 300. Now keeping these results in the formula given above, we find that E = [1+ (400/300)] 3 0.6-1 = 0.40 or 40 percent.
A positive 40 per cent expectancy will mean that your system will give you 40 cents per dollar in the long run.
Law 6: Pay attention to your trades and learn to love small losses. Once you put money in your account, then the most important thing is that your money is at risk.
Therefore, you should not need this money for your daily expenses and bill payments. Treat your trading money as vacation money. Once your vacation is over, all your money is also spent.
This is the same attitude of trading. This psychological method will prepare you to accept small losses, which is essential for managing risk.
Instead of focusing on your trades and accepting small losses, continuously calculate your equity, you will be more successful.
Second, risk only 2 per cent of your total funds in the trade. In other words, if you have $ 10,000 in your trading account, do not lose 2 per cent or more than $ 200 in value on any trading account.
If your stop is far from two per cent of your account, then you trade in a short time frame or reduce your risk.
Law 7: Create positive feedback. Positive feedback helps make the trade a good trade according to your plan. Whenever you plan a trade and execute it optimally, then understand that you are on a positive feedback pattern.
A successful breed attains success due to the belief in such a breed – especially if the trade is beneficial. Even if you have a slight loss, but you proceed under your planned trade, you will be able to create a positive feedback loop.
Law 8: Analyze your performances over the weekend. Preparation in advance is always beneficial. When the market closes on weekends, study the weekly chart to understand the patterns or news that influence your trade.
Perhaps a pattern can make your business reach double the heights, and many knowledgeable people or the news market can also suggest the opposite.
This is a type of reflexivity where the pattern can excite pundits, while scholars reinforce this pattern. Or maybe what the pundit is doing is about exploring the market.
Perhaps the market’s attraction for these pundits is so high that they are hoping to sell their positions to increase liquidity. With the help of these types of actions, you can see your upcoming trading week.
In a quiet environment of fairness, you can make your best plans. Wait for your setups and learn with moderation. If the market is not reaching your entry point, then you learn it for yourself.
You can also wait a long time for opportunities. If you miss a trade, remember that there will be another trade as well. If you live in moderation and discipline, then you can become a good trader.
Rule 9: Keep a printed record with you. Keeping a printed record can be a better learning tool for a trader. Take a printout of the chart and make a list of all the reasons for the trade and the fundamentals of your decisions.
Mark the chart with your entry and exit point. Also, write the relevant names on the chart. Keep this record, which you can see again and again. Note the emotional reasons for taking action.
When was it painful for you? Are you greedy? Are you hot Note all these feelings in your record.
All this is possible only when you know the purpose of your trade so that you will be able to develop your mental balance and discipline to execute your trade according to your system rather than your habits.
The above rules will give you a structured approach to trading, and the returns you get will help you become a more refined trader.
Trading is an art, and the only way to become more proficient in it is steady and disciplined practice. Remember, the harder you work, the more you get.
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