It is that too many traders relying on charts or graphs in trading. It is true that the movement of prices tend to move with the existing pattern, but the fundamental data / specific policies can change the direction of the trend of the market. So you'll want to combine technical and fundamental analysis in forex trading.
6. Always use a stop loss.
It sometimes makes traders dilemma, at the time of trading and stop loss hit, prices reversed from what has been predicted. But of the many cases have proven that without a stop loss trader losses could worsen. Starting from loss, led to the auto cut. Do you want?
7. The simple trading system.
Some traders argue, using many indicators to ensure a better direction of the trend. In addition there will be a lot to get a signal. But the fact that happened, the more indicators are installed, will actually make you dizzy for each indicator gives a different signal. Use 2 or 3 indicators alone, but understood completely. For example, you install the 6 indicators, in order to obtain the maximum signal you must understand the indicator is not? Say in the first 6 months you learn these indicators, surely your understanding of each indicator is only about 17% only. In contrast, if you simply learn two indicators alone, of course, you will be able to understand by 50% instead? Basically, all the indicators are the same, just the way he understood just different. Better if combined with the fundamentals.
8. Using the Expert Advisor (EA).
Many forex traders are sure to use the EA in the trading system. They include the algorithm trading system into a system of trading robot that does not need to be tired looking at the chart. But you have to remember, the trend of the market is always changing and no one knows where he is going price direction. If you use an EA, always control the robot trading system that you are using and continue to update the system.
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