The early stages of your career in forex rates are going to be the most physically, emotionally, and financially taxing. You will come face to face with many dire situations which will not only make you question yourself but also seriously consider quitting the market altogether.
However, all is not gloom and doom in the world of FX rates because some beginners actually side step all these situations and come up top even in the nascent stages of their careers. How do they do it? They do it by following the right practises and doing the right things.
Therefore, if you can also adopt the right way to view the market and the proper way to implement various techniques then you can also succeed in it without teething troubles. Here are some ways through which you can ensure profits from FX rates.
Do Not Place Your Trust In Robots
Because of the pressures that beginners face due to fluctuations in FX rates, they start to get overwhelmed. The natural response in such situations is to look for ways and means of reducing the pressures and, hence, the work load as well.
In the forex market, this solution is represented by automated trading software programmes or forex trading robots. However, these robots are not useful and, regardless of how much they tempt you, you should never place your trust in them.
The concept of minimalism is basically based on simplifying everything. While the benefits of implementing minimalism in real life are questionable, when it comes to FX rates and forex trading, they are undeniable.
In forex trading, if you were to embrace minimalism then you would essentially be stripping your charts to a point where everything becomes simple. This means using larger time frames and less indicators and filters.
Start With Larger Time Frames
The reason why beginners should always start their careers with larger time frames is that charts based on larger time frames tend to be free of market noise which is very common in charts based on smaller time frames. Without market noise, identifying and using trends and patterns of FX rates becomes much easier and you will be able to make more profits.
Avoid Using Too Many Indicators
Because of various reasons, new forex traders almost always get attracted to using multiple technical indicators in their charts. The possible logic behind this affinity to multiple indicators is that beginners think that they can help refine the charts further.
On the contrary, too many indicators actually make charts more complex and difficult to interpret. The direct result of this is that the trader gets conflicting forex signals on FX rate movements.
Plan Your Exits Well In Advance
Any position opened in the forex remains only a position, regardless of how much FX rates’ movement has occurred in the market. In simpler words, this means that up until you close a position, you cannot count any gains or losses. Effectively, your exits from the market become much more important than your entries into the market.