Top ten secrets for making profits in Forex Trading: A lesson for all South African traders

By: Chime Amara

Top ten secrets to make profits in Forex Trading

· Master the factors that move the Forex market: Fundamentals and technical analysis have remained the two major factors that move the market. However, the fundamentals always come before the technicals. The Fundamentals is known to validate the technicals. Fundamentals factors refer to major news releases bordering on the economy, politics, and monetary policies. Of these, interest rate hike, quantitative easing (Tapering), lockdown due to pandemic, wars, and Consumer Price Index (CPI) has remained the chief fundamental factors that moves the forex market. The technicals on its part determines the extent of the movement to expect from these factors based on the previous effects it had on the market previously.

· Choose your favorite pairs to trade: Many traders lose money in the forex market today because they want to trade all pairs in the market without mastering any pair. They become a jack of all trades and masters of none. Expert insists that the best way to master trading is by choosing not more than three pairs as the only pairs one trades in the market and carrying out thorough research on all the factors that moves these pairs.

· Create a trading plan: Trading plans are an indispensable guide for all successful forex traders. They spell out for the trader what to trade, when to trade, when to enter and exit the market etc. A trading plan makes trading easy for the trader and reduces stress.

· Visit the economic calendar daily: The economic calendar is an invaluable guide for traders. Thus, they show the major events to influence the market for the day. Good traders always paid great attention to the events in the economic calendar and took positions based on the outcome of these events.

· Choose a reliable broker: Choosing a good broker helps to secure the trader's investment. ECN brokers are often the best brokers for traders today.

· Avoid over-leveraging: Use of excessive lotsize often endangered ones account in cases of sudden reversals. Experts recommend the use of appropriate lotsize as an efficient risk management practice.

· Follow reliable news sources: Wikifx.com are trusted news providers to assist the trader in learning about the forex market. Traders can also visit other forex news to keep abreast with the latest news in the forex market.

· Discipline your emotions: Developing the proper trading psychology is very important to win big in the forex market.

· Learn new strategies every day: Learning new strategies daily gives the trader a better understanding of the market structure.

· Discuss with experts and mentors: Sharing ideas with experts helps one to discover the secrets of success in forex.