How to be successful trading at global markets
However, many inexperienced traders have taken this too far and it has been their downfall. Of course, risk management is a key factor in becoming a successful professional in Global Market Trader.
According to Eagles Global Markets (EGM), a brokage firm that offers its users both MT4 and Cloudtrade platform to enable them trade in dollar or Naira, there are no fewer than seven best practices to consider when trading.
The first is to make it affordable. Don’t invest more than you can afford to lose. Don’t gamble away your hard-earned trading account- invest it in a way that is intelligent and consistent.
Get information and resources from a reliable source. A great resource would include the EGM free weekly webinar with the Chief market analyst, where at the start of the week, clients are given the heads up on significant events that would drive markets during the week, discuss market themes for the trading week and also identify outlook bias and possible trading strategies on focused instruments.
Determine a risk tolerance point. This is a personal choice for anyone who plans trading on any market. Most trading instructors will throw out numbers like one per cent, two per cent or up to five per cent of the total value of your account risked on each trade placed. But a lot of comfort with these numbers is largely based on one’s experience level.
Determine the timing. Knowing the time the global markets open and closes in the different time zones, is essential to becoming a successful trader in the global markets.
There must be a clear plan. This plan regulates trading activity. A good trading plan is crucial to one’s trading success. Look at every angle of the trade and create proper entry and exit strategies. Just like any effective plan, strategies must be backed by proper tools, timelines and information. There are a number of order types, such as the “trailing stop,” “if/then,” and “order cancels order”, designed to help traders manage risk and protect potential profits.
Know how to analyze the markets. Price chart plots the recent prices of a currency pair on a graph and provide a snapshot of market movements over a particular period of time. Line charts are one of three common chart types used to view the changes in price movements over a period of time. While bar and candlestick charts provide detailed information about the price movements of a currency pair.
Watch the news. Certain news events like employment or inflation reports can create abnormally large moves in the market that can create gaps. Gaps are sharp breaks in price with no trading occurring in between. Gaps primarily occur over the weekend because it is the only time the foreign exchange market closes.
Trading in global markets can be a rewarding and exciting challenge, but it can also be discouraging if you are not careful.
EGM offers a trading platform to trade over 1,000’s of financial instruments in major markets globally, and earn passive income daily.
They provide free trading accounts, free beginner training, free weekly webinar, free daily trading strategy and resources, free master-class training, and free weekend training for working professionals.
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