Learn 7 Eternal Truths About Forex Market You Can't Afford To Be Unware Of

                                                             

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Nowadays, taking up forex trading either as part time or full time profession has become very much common among traders and investors. At the same time, the investors and traders always seek more information and always try to find out the truth in the forex market that will empower them with more knowledge and expertise. Below are given 7 most common truths that are always true for every trader and all traders must be aware of :-



Consulting the Experts and market Gurus won't always pay :

• Be always aware that psychology of traders vary from person to person. All never think the same way and it's only because of this trading in either foreign currency market or share market exists. It is foolish to think that a strategy that did marvel for someone will do the same thing for another. Make your own strategy yourself. Consulting an expert or guru is a good step but at the same copying the techniques of a guru will never make you a guru. There is no such course that can make someone 100 per cent successful trader in the market. You have to create your own unique idea by learning new lessons everyday from your mistakes. 

Day Trading is Risky but Profitable too :

• Day trading is a game of guessing and involves risk but at the same time may fetch attractive profit within a short time. There are thousands of traders who prefer 'day trading' to 'time frame investments'. Day trading never means you have to trade daily but indicates that buy/sale take place on the same day. It involves the trick of hitting the right ball at the most opportune moment. 'Day trading' demands experience and power of anticipation. 

Power of Observation :

• There are days when nothing can be made out about the market. Just watch, observe and find out what others are doing, it will enrich your experience. Observation is a powerful tool available free of cost. 

Select a Few but the Best :

• Engaging your brain over a lot of currency pairs will not only overburden the mind but also make things aimless and confusing. Try to select a few out of the best and technically superior based on your strategy. This will make mind free and help attain concentration. 

Always Practice Your Hand 

• Practising hand on a 'demo account' is always desirable before taking part in real life trading. But don't be surprised if the strategy followed by you in 'demo account' fail in 'real trading'. Practice in 'demo account' makes one familiar with the interface of buy/sale and a rough idea of trading but never makes one expert. There is a gap between practice and reality.  

Go for a Simple but Strong Strategy than a Complex one 

• There is a proverb "Too many cook spoil the broth". It means if too many people are invoked in cooking a particular dish each might add a different ingredient which in the end, spoils the entire dish. Likewise, too many tips, charts, fundamental & technical analysis will spoil the brain and lead nowhere. Never attempt all sorts of technical tools available to make your strategy perfect, it will only make you confused. So, try to use a few best tools to make your strategy unique.

Trading is not a Compulsion but a Passion

• Anyone can trade in the forex market 24x7 but that doesn't mean either you trade or you lose money. The truth is that any attempt to trade daily in the market irrespective of it being stable or volatile will force you to lose a lot of money. Sometimes, it's important to wait and watch in the market. Hitting the ball at the right time at the right moment can win the game. So, think more and act less.