Learn how to create a Forex trading setup with CMTrading to make money in this financial market. Do not continue to make the same mistake, not knowing what you are going to do. Create goals and a setup!
Have you ever heard the quote, “Try and try to succeed “? We will share a little secret with you. This sometimes does not apply to trading. It is the truth. Do not be shocked at what we said. Here are some tips to keep you from losing money.
One of the most common mistakes of beginning traders is doing too much trading, also known as over trading. Due to the fear of losing chances to earn money, they come in every moment that comes. Do not misunderstand this, but we believe you have to take risks to succeed as a trader. However, there is a difference between doing head-on trading and good risk management, against risking money and opening positions like a casino or betting.
Also Read: Top 5 Trading Mistakes: How to Avoid Them
This too obsessive approach will not only end up giving way to your Forex account, but it will still have a direct impact on your mind. The typical situation may look something as this: after losing money with a position, you find a new opportunity and decide to enter, thinking that you will win and will regain your previous loss. Boom! The market changed direction and the position turned out to be a disaster and to stay in the red. You have just finished your self-worth and account even more!
What can I do to Keep Myself Away from Overtrading?
Instead of acting generically and always opening and closing positions, why not you become a niche trader? This is called niche trading. It is the best way to make money in Forex trading with CM Trading. You do not need to bargain for 8 hours a day. You can even trade for 1 hour and earn a lot more.
This is based on finding what you are good at. That is your niche.
To define your Forex niche, it is important to answer some questions, which will ensure your success in trading. These are the questions:
- What are the currency pairs you are going to trade? Every pair has own behavior and trend, so it is significant that you can identify with one or two currency pairs. For instance, if you like to trade with the risk attitude and if you are fond of volatility then you should choose GBP / JPY and EUR / JPY.
- What is the time frame used? How many times do you have to negotiate? What is the trading session that you can see in the chart? Do you like fast-changing environments? Can you make decisions right on time or need preparations before you negotiate?