The Forex Trader Fail-Safe Checklist
For the uninitiated trader, the Forex (or Foreign Exchange) market appears to be lucrative, with the promise of quick riches from the many opportunities that are available.
But many of the novice traders will quickly lose their account due to poor trading practices.
It is not uncommon for them to leave bewildered, after another one of their trades went south in a hurry.
That is the primary reason that a checklist should be one of the first things to acquire in order to keep the account intact, and make some profitable transactions.
The Forex market can experience a great deal of down time (called consolidation), where it effectively doesn't move for long stretches at a time.
These are good times for evaluation by any trader, and can help to create that sense of patience that is required of any successful Forex speculator.
Many individuals think that movement in the market necessitates them making a trade.
This is not the case, and should be indicated in a position of higher ranking on the checklist.
Although this may mean missing some good opportunities in the interim, a speculator intent on making some good money in this market will be a lot more successful in the long term.
The typical checklist will warn an investor of the dangers of certain market situations, and help to formulate a strategy designed to win.
There will be tips such as when to avoid going long, and what to look for in the market when this is indicated.
It can be as specific as pointing out what the MACD 1 and 4 hours charts are showing.
There is also the 200 EMA (Exponential Moving Average) that needs to be considered before making a move.
It really helps an investor to have a short set of steps that have to be completed before even considering a transaction.
While going long can be costly, there is also the danger of incorrectly going short.
The same factors are in play here as well.
Charts and prices have to be evaluated before making a move.
This will safeguard against making too many trades that are just totally unreasonable.
While a checklist will decrease the number of transactions that are made by an investor, they will also help to find ones that have greater potential as well.
Since the goal of any Forex trader is to make money, this should make perfect sense.
But many of the novice traders will quickly lose their account due to poor trading practices.
It is not uncommon for them to leave bewildered, after another one of their trades went south in a hurry.
That is the primary reason that a checklist should be one of the first things to acquire in order to keep the account intact, and make some profitable transactions.
The Forex market can experience a great deal of down time (called consolidation), where it effectively doesn't move for long stretches at a time.
These are good times for evaluation by any trader, and can help to create that sense of patience that is required of any successful Forex speculator.
Many individuals think that movement in the market necessitates them making a trade.
This is not the case, and should be indicated in a position of higher ranking on the checklist.
Although this may mean missing some good opportunities in the interim, a speculator intent on making some good money in this market will be a lot more successful in the long term.
The typical checklist will warn an investor of the dangers of certain market situations, and help to formulate a strategy designed to win.
There will be tips such as when to avoid going long, and what to look for in the market when this is indicated.
It can be as specific as pointing out what the MACD 1 and 4 hours charts are showing.
There is also the 200 EMA (Exponential Moving Average) that needs to be considered before making a move.
It really helps an investor to have a short set of steps that have to be completed before even considering a transaction.
While going long can be costly, there is also the danger of incorrectly going short.
The same factors are in play here as well.
Charts and prices have to be evaluated before making a move.
This will safeguard against making too many trades that are just totally unreasonable.
While a checklist will decrease the number of transactions that are made by an investor, they will also help to find ones that have greater potential as well.
Since the goal of any Forex trader is to make money, this should make perfect sense.
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