The pandemic has caused a boom in Forex trading around the world. Millions of users have discovered the benefits of working in the biggest financial market. Still, success is fleeting unless you follow a proven strategy. Olympic Trade, one of the biggest international brokers, offers insights to help you get started.
How to make profitable trades? If there was a surefire method, every trader would be a billionaire. The beauty and complexity of trading are in its volatility. It may bring substantial gains or losses depending on your strategy or lack thereof.
Tip 1. Learning Is Still Vital
Live trading is incredibly exciting, but also stressful and risky. Take advantage of the opportunities offered by Forex providers. Despite the advances in trading technologies, knowledge is power. The Olymp Trade platform is an all-in-one tool you can download for PC or mobile systems. The $10,000 deposit is enough to cover your training needs.
First, explore the interface to see where different features are located. Then, learn to analyze the market using indicators and charts with adjustable timeframes, open, modify and close trades, set risk management parameters (Stop Loss, Take Profit) for every position, etc. On average, one should spend 2-3 months in the demo mode.
Tip 2. Look for Confirmation
Traders should not rely on a single indicator to make decisions. For example, to confirm a market turnaround or reversal, you need to see price action and volume momentum aligned. Otherwise, the trend is too weak to be reliable.
Tip 3. Keep Track of Results
To see if your strategy works, note down basic details of every trade — the instrument, entry and exit price, volatility, motivation for the trade, etc. Trading platforms may offer history tools, but not journals.
Tips 4. Stay Mindful
Mindfulness is a trendy concept, but you may think it has no relevance when it comes to trading. In reality, self-control is the cornerstone of consistency. Emotions cause irrational decisions that may prove devastating.
When a trade fails, it is tempting to continue buying or selling in the hopes of compensating for the loss. Chasing losses is reckless and counterproductive. Instead, take a break, research the market, and make informed decisions about subsequent steps.
Tip 5. Choose Your Sources
The digital space is packed with resources dedicated to trading, from articles to podcasts to entire YouTube channels. This means educational content is instantly accessible, but, at the same time, anyone can claim to be an expert. Check the background of your coach or influencer before following their advice. Make sure this person is qualified and has a solid track record of success.
Forex Trading in 2021
As you can see, the basic principles of trading education are irreplaceable. Take your time to get ready for the real market, and review performance regularly. No strategy guarantees profits, so keep calm and use insights from reliable sources.