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What you need to succeed, from LegacyFX
When
entering forex, proper training is paramount. Relying solely on intuition is
not sufficient to help one succeed in this field. Analysis and proper
manipulation of the market are required before one begins practicing in it.
Trying to trade in forex without learning the system first is equivalent to
playing a game without knowing the rules beforehand.
Forex
education can be broken down into three main elements, all of which help
traders succeed in the market. The first element is understanding and
discussing the forex market concerning money management, risk, and execution.
The second element involves learning market levels and their analysis. Finally,
the third element is detachment and maintaining discipline when trading.
Per
the first element, managing money refers to knowing what a trader may invest.
Risk involves understanding how much one can invest without overextending
themselves, past what they can cover. Finally, execution refers to knowing how
and when to place trades. Based on these three fundamentals, a trader can use
the various parts of this element to minimize their exposure in the market and
maximize profits.
An
experienced forex trader or reliable forex brokerage typically will offer
traders ways to deal with the second element. This usually manifests itself in
providing inexperienced traders with managers who help them learn the
fundamentals of analysis techniques and market levels. Many brokerages will
recommend beginning with small investments along with stop-loss strategies to
ensure that a trader does not get wiped out from the get-go. Others offer
education packages, tutorials, intricate webpages, and videos to assist in
learning strategies, analysis, price behavior, and other helpful techniques.
Finally,
all experts reiterate the importance for traders to set their emotions aside
when trading. This means maintaining discipline, level-headedness, and not
allowing one’s emotions to control actions or lack thereof. Basically, to not
behave impulsively is the psychology of forex trading and the correct way to
approach it.