Currency Trading Key Concepts
It goes without saying that it’s advisable to apply a serious approach to Forex trading in order to become successful in this field. To cut a long story short I can tell you that the whole theory of success can be fully summarized in three essential things. Let me tell you about them right now.
The first thing is that you need to learn the basic concept of the technical analysis. Secondly a trader must learn to feel the danger nearby and know when it’s absolutely unwise to enter the market. And finally you need to have the ability to find entry points into the market with the minimum risk. To pass these three stages you can use a demo account with virtual money. From my point of view this can take at least several months. In such a way you’ll get an excellent opportunity to form your own strategy, identify your weak points and may be learn to treat the virtual deposit with the same respect as a small real one (https://www.independentinvestor.com/forex/tips-and-techniques)
But then it can occur to you that it’s necessary to improve your trading strategy.
At this stage, you will require a small live account. I think that for this purposes it would be better to place on the deposit a sum which is equal to 30% – 50% of your monthly income. This amount is supposed to be enough to treat your deposit very seriously and at the same time such a small amount can make you feel quite comfortable except for your panic at the slightest market move against you.
By the way I wouldn’t like to recommend you to open a deposit on borrowed money, hoping to double the deposit quickly and pay off the debt. Moreover, if you do not have enough money to open a deposit, this means that your fate does not want you to do this. Who is going to go against his own destiny? This is not courage but stupidity I should say.
It goes without saying that it’s advisable for you to gain enough experience. The experience can not only successfully find good entry and exit points, but also correct mistakes with minimal losses or small profits. In addition, I can tell you that sometimes there are situations when the mind intuitively sees the familiar pattern of the market and accurately makes the right decision, even without a deep technical analysis of the situation.
As son as you gain a sufficient experience in this field you should think about a sufficiently large deposit. It will be your main tool for generating money. At the initial stage of your work in this field a small deposit is possible. If the expected market movement of 100 points corresponds to the profit of 20% of the initial deposit, you will require only 500 points of profitable trades to double your account.