5 Tips for Consistent Survival at Forex Trading
How can you get a lot of profit in each position opened? These questions are often asked by friends of traders who are still first in this forex trading business? And if you look closely, the correct question is how to survive and remain consistent in running this forex business.
Well, in this paper we will discuss about 10 tips to survive in this forex trading, including:
1) Don’t Match Forex with Casino
Forex trading is not a place to gamble. Everyone is aware of that, but there are still many who do it. Forex trading is not a place that can generate millions of rupiah in an instant or in one night.
It takes a thorough analysis and deep understanding to be able to provide results that are worth it. Gamblers spend money or dreams to get abundant money in one night. If you treat forex like that, then you are not much different from the gamblers who are in a casino.
No need to rush to get large amounts of profit. It’s better to collect pips that are few but consistent than trying to get tens to hundreds of pips in just one trade. Remember, always have a mindset that forex is destroying investment for the long term.
2) Do not throw money if you have not experienced
It would be better if you practice or look for experience first using a demo account. It aims to familiarize yourself with the trading platform interface or try the trading system. In addition to using a demo account also indirectly makes you disciplined in managing money management.
Lots of beginner traders have dared to open and use Real Accounts. Even though they don’t have a trading system or trading style that suits them. The result is not the profit gained but the loss is infinite. As mentioned above forex is a place to invest, not a place for gambling or just for trial and error, let alone using real money.
3) Understanding Trending Price Movements
In each price movement, there are only 3 definite patterns, namely Uptrend, Downtrend and Sideways. If the market is experiencing a trend, don’t be afraid to try to open a position. As a reminder, Trend conditions are when prices move strongly in one direction within a certain period of time.
Learn about what trending conditions are, so you will not be trapped or confused when prices are in action (especially correction). Use a large enough time frame such as H4 or daily to see the condition of the current trend, because at the time frame the price movement conditions are very easy to recognize.
4) Don’t risk all capital for only a few positions
This is often done by many traders, especially those who are beginners. The use of lots that are too large can cause all of your capital to run out in an instant. Usually this is motivated by the use of high leverage.
If you are not good at managing lots, use small leverage, so you cannot use a large lot at any time and do a “Lot Bomb” in just one position.
5) Always use stop loss at each Open Position
You may not be able to withstand continuous losses until your capital is completely exhausted. On the other hand, you also can’t expect to get a big profit every day. Every business has time to lose and profit.
If you are unable to close a minus position, then use Stop Loss. This feature is actually very helpful for maintaining your capital so as not to lose too much. In addition, stop loss can indirectly help you to be disciplined in every position. You need to know, many professional traders who are successful in this forex business always use stop loss to manage losses.
