The Forex market or the Foreign Exchange market is the largest financial market in the world. Millions of people across the globe are participating in this market. You might even know when you are getting incorporated with the Forex industry. Since the price of the trading instrument is changing vigorously, you need to predict the price movement by using some of the oldest methods used by the professionals. But some traders think this market is manipulated. Many common myths are prevailing regarding this trading business. Read this article since we are going to bust some of the most common myths at trading.
Trade with the trend
Well, the trend trading method is the best way to make a profit from this market. But this doesn’t mean you can’t make a profit by trading against the major trend. Many skilled traders in Singapore are trading the key reversal and making a decent profit. They follow a simple approach and use the major chart pattern to trade the reversal. You might be a new trader but if you learn to trade the key reversal, you can expect to make big profits from this market.
Using high leverage
Leverage is one of the most powerful things you can use as a currency trader. You might have a very low balance in your trading account but with the help of leverage, you can open a big volume trade. But using leverage is not easy. You have to think about the risk factors. Some people often think using low leverage Forex trading account greatly improves the performance of the retail traders. But this is not completely true. You should never trade with more than 1:10 leverage. If you do so, you might break the rules of money management and lose a big portion of your trading capital.
Trading the news
Trading the news is one of the most complicated tasks. People sometimes think learning to trade the major news is an impossible task. But have a look at the elite traders at Saxo. It won’t take much time to understand how they trade the news with low risk. Think about the long term goals and try to improve your skills by learning from your mistakes. Forget the fact that trading is all about taking a high risk and pushing yourself to the extreme point. Invest your time on learning the art of fundamental news and you can trade the volatile market with a high level of accuracy.
Use of EAs and bots
EAs and bots have become extremely popular in the trading industry. Amateurs think this is the best tool that can trade the market on behalf of them. If you want to make change your life, you need to see the results of using the EAs at trading. Most of the time these EAs fail to make a profit in the long run. Think smart and learn to trade this market with rational logic so that you don’t have to lose a big portion of the investment. Use a manual trading strategy and try to improve your skills by learning from the experienced traders.
Trading the lower time frame
People always think a higher time frame trading method is the most efficient way to earn money. But this is not always true. Learn to use the multiple time frame analysis and you can easily filter out of the false trading signals. Finding the best trade by studying the different time frames is not so hard. When you hear people saying higher time frame trading is the best way to earn money, you should stay away from them. Either they don’t know the perfect way of trading or they want you to follow the conservative trading method because they don’t have confidence in you. So, before you select your preferred trading strategy, you should consider this fact.