Trading is tricky business. There are good days and there are bad days. If you are new to this whole trading shindig, then, chances are that you are spending more time overwhelmed with what’s going on that you are actually trading. There are easy outs to being fully involved, like using trading bots like HBSwiss, however, before you get into automating your trades you need to know what to do and what not to do.
There are plenty of trading strategies out there, and while reading and research is an integral part of being an active participant in the finance market, there are some basic etiquettes to follow when you’re here. Let’s look at the top 5 don’ts in forex trading:
- Don’t make impulsive decisions – this is advice that is universal and especially true in the trading markets, especially currency trading. An impulse buy or sell could cost you literally every penny you have earned. The best option is to wait and watch and then jump in. There is no reward without risk, however, but a little caution and you might be able to handle the impact of a rash decision much better.
- Learning is a slow curve – just like with everything new that you will try out, trading will also become an acquired skill, but it is something that needs time and patience and a few losses along the way. So, observe your trading strategies on the days you make money and observe them much more closely on the days you lose cash.
- Avoid Inactive market hours – there’s a reason why the markets fluctuate, there are active and inactive hours. And when someone decides to trade during inactive hours of the market they could lose all their money and that’s not a good thing at all. It’s best to be active when the market is moving as well
- Don’t trade with your entire deposit – When you are just learning the tricks of forex trading using up all your deposit money can be fatal for you. Trade an adequate sum of money, and try to minimize your risk as much as possible.
- Don’t get emotional – this is money and money is not something that is governed by emotions. If you feel like you should do something big just because you made a huge profit off of one trade, then, it’s best to put a dampener on the whole thing by taking a step back and evaluating whether or not your decision will lead to a profit. If you can’t give a straightforward answer, then, don’t follow through.