The Middle East’s Forex industry has come along way over the past few years. Starting from a rather negligible base, the sector has thrived thanks to a low-yield environment and growing investor appetite.
According to figures from the Bank for International Settlements (BIS), trading in forex averaged $5.3 trillion per day in May 2013, with the Middle East’s retail currency market accounting for 8 per cent of the global amount.
It is a significant share given the region was a late adopter of forex as an asset class. The industry was still in its early days just a decade ago, with investors looking primarily to real estate and equities to hedge deal transactions.
If you struggle to find a trading approach or make continuous loses, then you need to change the way you operate. You can’t make millions overnight, especially if you are just getting started. All you can do is pick the right strategy and continuously make small profits. Let these five steps help you turn your trading around.
Choose the Trading Method That Works for You
Almost Always, Traders come to forex looking to get rich quickly. They want to achieve instant success, and instead of looking for a method that will lead to their success eventually, they search for latest indicators that will do everything.
Forex doesn’t work this way because if it had, every trader would be rich beyond his dreams. If you want to make money in Forex, change this mentality and pick a method you can use for a long time. A Prolific Method to make money is Price Action Trading.
It is a tried and tested method, but it becomes ineffective when the market dynamics change. Price Action Trading needs the trader to learn how to read the raw price on the chart and focus on high probability price pattern which will repeat. Price action is simple as most traders get their head around with a bit of help and the right education.
Once the trader picks the method that suits their trading style, they will stop chasing money and start working on their approach. Chopping ad Changing method gives you nothing but frustration. Commitment is the only way to improve your chosen trading method and practice until you reach perfection.
Trade on High Time Frames
Lower Time-Frame doesn’t always offer more trades. It does get you more signal, but they can be false. Turn your strategy around by using Higher-Frame Charts. The daily chart is more powerful because it takes time to make the signal. A good example will be inside the bar. The price doesn’t break an inside bar on the One-Hour Chart.
But if we see inside bar on a daily chart, it shows the price went through every trading session. Therefore, a candle with 24 hours’ worth of info tells us a lot than a candle that is made up of only one hour. With this extra charge, the daily chart signals are more reliable and powerful as compared to a Lower Time Frame.
Don’t Glue Yourself to Charts All Day Long
Watching Euro Forex currency news, analysis, outlook and forecast all day seems profitable, but it isn’t. Once you commit to only trading larger time frames like the Daily charge, you need to stop watching the chart the whole day.
Watching the charts all the time is a common mistake. If you only watch charts, you won’t do anything else. In fact, you may make these mistakes
- Enter Trades at the Wrong Time
- Taking Trades Off When You Shouldn’t
- Take Profits at a Bad Time
Tightening Stops at the Wrong Time
When you commit yourself to trading charts, you lose the sense of time. When the market closes, you need to switch on the carts and look for prolific trade set-ups. If there is no trade, turn off the computer and do something else.
There is nothing more you can do. The market needs moving, and it will move whether you keep track or not. So, walk away and let the market change.
Only Trade When You Can Afford to Lose
If you fear losing money in Forex, then you have already lost. A Trader who places trades while being scared is doomed to fail. When are you afraid, you make decisions that show you are vulnerable. You will make every psychological mistake to make sure your money is lost.
Therefore, the only money you can risk in the forex market is the one you can afford to lose. Never risk the money you need for your daily expenses.
It doesn’t matter if you don’t have loads of cash. Start small with mini and micro accounts. Small accounts help you to improve your money management. You can add money to your account later.
Change Your Mindset
Most people don’t look at the psychology of new traders. Most traders only focus on their trading method or the system. Therefore, most people fail because they don’t change their mindset. Trading is a battle that you fight in your mind. Focus on this and learn all you can. You can start with books, forex bar, line and Japanese candlestick charts, and blogs.