By: Chime Amara
The forex market has the largest capital investment in the world with over $5.8 trillion invested in it and over $9.9 billion traded daily. This means there is no limit to the number of profits the trader can make from the market. Thus, there are lots of opportunities for traders to make profits in the forex market as long as one abides by the rules guiding the game. To this end, we have highlighted some of the rules and tactics necessary to win big in the forex market.
Basic Guides to win big in the forex market
A. Choose a regulated broker: Trading with a regulated broker is very important as it helps to provide security for investors' funds. Hence every trader should choose from the list of regulated brokers under the major tier regulators such as FCA, ASIC, CYSEC, FSC, FSA, etc. A simple guide on how to choose a good broker could be found on the WIKIFX.com website.
B. Learn how to trade: There is no other shortcut to winning big in the forex market apart from learning how to trade. Learning how to trade is considered the first step to winning big in the forex market. Only good traders can make money in the forex market while ignorant ones keep losing money.
C. Get a mentor: The need for getting a good mentor cannot be over-emphasized. With good mentorship, trading becomes fun. Mentors are experienced traders who have developed excellent strategies for the market through years of active trading. Thus they pass on their experience to the new trader to set him on track to win big in the market.
D. Set your take profit target: The market no doubt is very volatile and does not move on a linear pattern. Setting a profit target helps the trader to beat rapid reversals when the price hits a certain resistance level.
E. Identify the market trend: The trend is the trader's friend that tells him which direction to follow and for how long too. Identifying the market trend helps the trader to choose the best position to take and when to exit the market.
G. Develop a good trading plan: A trading plan is a simple guide that tells the trader when to enter and exit the market. It further helps the trader to decide which pair to trade and what target to set as take profit.
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