While what you’ve read online is useful, most of it might not help you become a successful trader. To succeed in forex trading, you need to gain a deep understanding and discover the secrets no one is revealing to you.
But in this article, we’ll breakdown five forex trading secrets and tips that an invested FXtrading investor needs to know.
1.Create a Forex Trading Journal
It’s natural for Forex investors to abandon a trading journal purely because most brokers provide real-time trade records for them. What these traders don’t know is that these records don’t capture everything.T therefore, you can’t predict market trends or turning points with accuracy.
When you keep a trading journal, you’ll be able to capture momentum, ride trends, and track your trades, thoughts, and decision quickly and accurately.
2.Have a Trading Strategy? Stress-Test It
After crafting your trading strategy, make sure you put it into a test before you implement it. This is one of the essential forex trading secrets that will help you determine its effectiveness.
Stress-testing a trading strategy is not as difficult as most people think. There are countless simulation tools out there that you can use to stress-test your trading plan before you invest any real money in it.
The simulation tools use sophisticated technologies that enable them to emulate market conditions similar to financial crises. If the results you get from the tools give you some level of comfort, you can go ahead and implement your trading plan in the real world.
3.Understand the Difference between Trading Fads and Trading Trends
To be successful in forex trading, you need to keep tabs on all trading trends. However, you need to know the difference between a trading trend and a trading fad. For this, you might need to understand macroeconomics concepts and their practical significance in influencing trading decisions.
Your macroeconomics course should start with understanding simple terms like GDP, interest rates, inflation, and earnings. You should also understand how macroeconomics concepts and data are reported to the markets and how they affect every currency.
4.Follow Newswires and COT Reports
You’ll seldom find a successful forex investor who doesn’t follow newswires. For this reason, make sure you stay glued to newswires, mainly financial and economic ones. They’re going to deliver that will help you make the right trading decisions.
Also, make sure you follow Commitment of Traders reports (COT). These reports contain valuable insight into the activities of renowned Forex traders, who collectively have the power to influence the forex market.
Following these reports will help you get a good idea of thepossible future market changes.
5.Showcase True Commitment and Trade When the Market Is Active
Those who understand forex trading secrets know the importance of commitment and making timely decisions.
Therefore, you need to take things seriously and showcase true commitment. Also, make sure you only trade when the market is most active and always choose the right pairs.
Take the Bold Step
Over to you. The trading secrets and time-tested tips we’ve highlighted herewill help you make worthy moves in forex trading. They’ll also help you avoid the mistakes that most traders make. When you’ve understood everything, it’s time to take a bold step and start trading.