Three ways to improve your Forex trading results

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1) Accuracy or risk-management

These days, the situation on the financial markets is not clear. The market entered a period of uncertainty, when the old trend is no longer valid, and the new one has not yet appeared. And besides, when was trading in the financial market a simple and obvious business? Trading is the art of being on good terms with uncertainty, the ability to use the opportunities presented and ignore situations in which the risk does not imply greater reward. The whole secret is that you do not even need to be exact all the way in your transactions; you do not need to prove to the market every time that you were right. Of course it’s good to be right, it brings a sense of satisfaction and own worth. However, it will not bring you money. Very few professional traders make their money always by exact trades. Most often, it’s all about small losses and greater gains. If you know how to do this, you do not even need to be super precise to make a lot of money! This greatly facilitates the process of trading and the trade becomes less nervous. Therefore, do not open any transactions that do not have at least a risk-reward ratio of 2 to 1, and preferably 4 to 1 or more, and make sure that your results are constantly improving.

2) Stop orders

We will not talk about the need to use stop orders. We wrote a lot about this in our other articles. We want to remind you that working with stop orders is no less important art than the art of entering the market. Many traders use fixed stop orders and never change them, which is the general rule. But there is one consideration when changing the stop orders will be appropriate. This is the moment when we need to make a correction for volatility.

3) Use volumes to determine the level of volatility

This point is directly related to the previous one and this is what professional traders do very well. Most traders do not know that the volume directly correlates with volatility. If a large trading volume is loaded onto the market on a certain trading day, then we will see a powerful directional movement with a high probability. If the volume is insignificant, the market is more likely to trade within a shorter previous range. Not taking into account the level of market trading volume, you can jump on an exhaled momentum or vice versa to increase the position if the volume confirms the trend.

 

Source: FortFS Broker

FortFS Forex Broker review and Details


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