Forex Trading Advice

Forex Trading Advice

Money – You need to understand how much you can afford to lose and how to manage your losses. You should also be aware of the risk-management tools available to you such as stop-loss orders.

Advantages – The forex market offers the opportunity to trade in currencies from all over the world, making it a great way for speculators to make a profit on fluctuations. In addition to the benefits mentioned above, you can also benefit from tight spreads, no hidden fees and access to 12,000 instruments.

Strategy – Your strategy should be designed around the goals you have set for yourself, and be aligned with your personal trading style. This will help you to achieve your objectives and ensure that you remain profitable.

Time Frame – You should decide on the timeframe in which you want to trade. This will help you to identify the most suitable market conditions and avoid being caught out by overly active markets or those with a high daily range.

Position Size – The number of trades you wish to open in any given period should be determined by your desired outcome, and this should also reflect your personal risk appetite.

Trading Sessions – There are three main Forex trading sessions based on regions and countries: Asian, European and North American sessions (also known as Tokyo, London, and New York session). These sessions overlap with each other from time to time, and when two trading sessions are running they are referred to as the London/New York trading hours, which account for over 50% of global currency trading volume.