The Forex Market is fast moving, so timing is incredibly important to consider when planning to go into Forex Trading.
Are you trading part-time? Will you be trading within a regular time period each day? There are a lot of things to consider before you get started. Here are some strategies to get you going.
Timing is everything in Forex trading
Timing is especially important in Forex Trading. The hours in which you’re trading will impact on which currency pairs you will be most suited to trading in. If you’re trading during the day, then US currency pairs will suit you best, as they will be the most active during this window. If you’re working full-time and can only spare a few hours in the evening, consider the Australian Dollar, if you’re trading late at night, have a look at Asian currencies, and early morning – the European ones.
It is important to keep your timing consistent. If you are unable to regularly check the market, consider longer times frames for trading. Some experts even say that is easier to predict the market when trading over longer periods.
Want to trade Forex? first rule: Have a Plan.
Ensure you have an entry and an exit strategy. A plan for when something goes wrong, like a ‘Stop Loss’. Make sure you have done as much research as you can to back up what direction you think the market is likely to move in and that you know why you think it will move like that.
A certain amount of trial and error is required when you start out. It is all a road of discovery, to work out what works best for you – make sure you keep records of all your trades and continuously improve and strengthen your strategy. Most importantly, especially as the beginning, is a plan to minimise loss rather than maximise gain, at least until you are fully comfortable with the Forex Market.
Last, Know your Market.
Familiarise yourself with everything there is to know about the Forex Market. The terminology, different ways of trading, the benefits and the risks. Make sure you go into trading with as much knowledge as you can, this will go a long way to minimising the risks while you gain enough experience to become a confident, successful trader.