Categories
Uncategorized

How to deal with loss in Forex?

How to deal with loss in Forex?( The most important rule in the area of ​​currency trading is to try to reduce your losses as much as possible. When your losses are small, you can stay in the market for as long as you can, even when you are moving against you, so that you can benefit from market conditions when you start moving in the direction you want. One of the best ways to keep your losses at a minimum is to determine the maximum loss you can afford even before you open the trading center. The maximum loss or loss is the maximum amount of capital you can remain comfortable even if you lose it during trading. Keeping your maximum losses at a certain percentage of your account balance will not stop you from trading at any time. Unlike 95% of forex traders who lose their money just because they have not followed prudent rules to manage their capital within their trading system, you will remain in good shape using this golden rule of capital management. Let’s use an example. If you have a $ 1000 trading account and start trading at $ 100, you may be losing three consecutive times. This will reduce your trading capital to $ 400. Then you may decide to trade at $ 200 in the next trading center because you think there is a greater chance of making profit after losing three consecutive times. If the trader decides to trade at $ 100 in the next trading center because he thinks he is able to make a profit, his capital will decrease in case of loss to $ 250. In that case, the chances of making money are almost non-existent because he will have to win about 150% of his capital until he reaches the point of parity. If the maximum loss has been determined and committed, the trader may not find himself in this position.  And other way to use your trading strategy, and to accurately transmit the results of your trades to the profit and loss rates and the expectations of the strategy. For example, if your strategy shows a profit rate of 75%, you should expect 25 losing trades after you have 100 trades in the Forex markets. However, if your strategy is performing as it was during the experiment, you still have to record profits if the forecast value of the trading strategy obscures its effectiveness. Therefore, you must deal with the losses as a normal part of the trading sequence in the Forex markets, which produces profit-loss ratios for your trading strategy. However, if you trade in the Forex markets in an illogical way, you will not be able to put your losses in a very clear frame, and you may be scared as a result. Trying to force operations to succeed when all the market conditions are not in your favor is not wise, and will only result in substantial financial losses. Instead, you have to develop a psychological state that enables you to deal with losses as they are by analyzing them mechanically and with cool nerves. You have to study it systematically, and then move on to the next process

Categories
Uncategorized

The main difficulties facing a forex trader

(The main difficulties facing a forex trader) Most traders spend years trying to look for a set of indicators that only a few Forex traders know that will enable them to become wealthy in a short time. But there is no such thing as a fantastic indicator or a set of indicators that can enrich anyone in a short period of time. The main reason for this is market changes, each moment is unique. Any Forex trading system will inevitably fail at one time or another. Therefore, our goal will be to find the Forex trading system that fits our character as traders, otherwise the trader will have difficulty tracking this system. Unfortunately, most traders are attracted to the Forex market because of the desire to increase money. This is mainly due to the fact that advertising always tries to show or suggest that trading and making money in Forex are easy. But in fact, trade in itself is very easy for anyone to do. It’s just as difficult as a single peak, but the second part of trading is not that simple. Making money or achieving continuous profitability results is difficult as it requires a lot of learning, patience, discipline and commitment. This list will continue with you forever. Most traders ignore that they will not have to use capital management rules until they achieve sustained profitability results. But capital management allows you to increase your profits systematically and also reduce the risk you face in each trading center. Capital management tells you how much risk you can incur in each single trade. Using capital rules is essential if you want to achieve the objectives of your business. Using capital management rules, you are sure you can stay in the market tomorrow, next week, next month and even in the following years Psychological discipline is one of the most forgotten topics. One of the most important principles of the financial market is that the price of any financial asset depends on the realization of all individuals involved in the market or so-called “herd.” In other words, the price of any financial asset is determined according to the factors of fear, greed and hope of all traders. You must be aware of all the psychological factors affecting the decisions of traders will definitely put the possibilities of trade in your favor. Learning is the basis of knowledge in any human system. Just as engineers and doctors need long years of university education before earning their degree, Forex traders are also required to spend many years studying. It is recommended that you find someone with experience to guide you through the trading process because some information may take you without knowing the wrong path.

Categories
Uncategorized

How did forex start?

(How did forex start?) The origin of the Forex trade has been traced back to its history years ago. Different currencies and the need to exchange them have existed since the days of the Babylonians. He calculated that they were the first to use paper notebooks. Speculations were barely speaking. These days the value of goods was expressed in the form of other goods. The clear limits of this system encouraged more acceptable means of exchange. It was necessary to establish a common rule for calculating the value. In some economies, things such as teeth, feathers and even stones were used at some times, but later on, the use of minerals, especially gold and silver, was used to dig a prominent place as an acceptable means of payment and also as a storehouse of value that could be trusted. Trade between the peoples of Africa, Asia and others was done through this system. Money was initially manufactured from the preferred metal in stable political systems, introducing the paper form of government bonds also gained acceptance in the Middle Ages. This type of bond or paper currency was more successful by imposing it through force than persuasion until it became the basis of the modern currency system in today’s world. Before the First World War, most central banks supported their currencies by making them convertible into gold. However, the standard gold swap system had weaknesses during the cycles of contraction and boom. When an economy recovers, it begins to increase the pace of its imports from abroad so that its gold reserves are reduced to support its currency. As a result, money supply dwindles as interest rates rise and economic activity slows down to recession. in the end. . The Great Depression and the abolition of the gold standard system in 1931 created a period of calm in the activity of the Forex market. From 1931 until 1973 The European Economic Community introduced a new system of fixed exchange rates in 1979 known as the European Monetary System. Europe’s pursuit of currency stability continued with the signing of the Maastricht Treaty of 1991, which not only aimed at stabilizing exchange rates but also replaced many of them in euros in 2002. London was and remains the main center of the offshore market. In 1980, it became the main center of the Euro-Dollar market when British banks began lending in US dollars as an alternative to the Pound. In order to maintain its leadership position among global financial centers, the non-persistence of the fixed exchange rate regime gained new significance with the events in Southeast Asia At the end of 1997, some of the currencies were devalued against the US dollar, while others were left unchanged, especially in South America, which was also in dire straits at this time. While businesses have to face a more volatile currency environment during these years, investors and financial institutions have found new ground to work on. The Forex market initially operated under the control of central banks and government institutions but later absorbed various other financial institutions. At the moment, it also includes dot com companies as well as those operating on the Internet. The size of the Forex market is currently dwarfed by any other market for investment. The foreign exchange market is the largest financial market in the world where it trades approximately $ 1.9 trillion a day. It is estimated that more than $ 1200 billion a day is traded daily and thus can easily be said that the Forex market is a very lucrative opportunity for discerning investors