Tips for Successfully Playing Forex
Tips for Successfully Playing Forex

Check out 6 Tips for Successfully Playing Forex

Forex is an abbreviation of foreign exchange . Forex is a transaction of buying and selling foreign currency or foreign exchange. The transaction method is by exchanging two currencies.

For example buy USD or sell EUR. This means that the Euro (EUR) is exchanged for US Dollars (USD) using the rate or price prevailing at the time of the transaction. This price is subject to change at any time. It depends on various factors, such as interest rates, economic and political conditions of each country, and others.

The thing you need to know again about forex, is not an investment. Investment is an investment activity in the long term. While forex tends to expect profits in the short term or short term.

Forex promises very big money. But it is directly proportional to the risk. If you are profitable, it can be up to 10 times the capital. But if you lose, the capital is immediately sold out.

Its nature is also uncertain, very volatile. Although not a banking or money market product, forex is included in futures trading which is supervised by the Commodity Futures Trading Supervisory Agency (CoFTRA) of the Ministry of Trade.

For you novice traders , here are tips for playing forex so that money continues to flow:

 

1. Choose the right and trusted broker

This is very important because the forex broker is the one who will help you in every transaction. Forex brokers not only provide a forex trading platform or online application for buying and selling activities, but also provide education.

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At the beginning, you will be guided and given digital or virtual money that can be used to transact in real time in the forex market. A good forex broker should provide 24 hour service to traders .

This is important to ensure that traders can carry out transactions smoothly, safely and without the problems of the broker system. 

2. Learn forex and how it works

The key to success and wealth from playing forex is learning. Especially for you beginners, learning to be a mandatory food. Take the time to learn the ins and outs of forex, including how it works, how to analyze it, observe market trends, and manage risk.

Learn all this from various sources. Explore as much knowledge as possible from people who have succeeded in buying and selling foreign exchange, such as George Soros, and others.

If you fail in the middle of the road, don’t give up. Continue to learn from mistakes and find ways to improve them.

3. Do research and analysis

Before buying or selling, you should research and analyze the factors that influence forex market movements. Technical analysis, fundamentals, and market sentiment analysis.

It’s best if you use all three analyzes before trading . But for beginners, just one is okay. For example, fundamental analysis based on economic data and news trends in the media.

Or technical analysis by looking at price movements using charts or formulas as calculations. Meanwhile, market sentiment analysis examines the attitudes of market participants, so that it has an impact on price movements.

4. Trade with a plan

Beginners usually just go along or rely on instinct when playing forex. As a result, once the price rises a little, immediately sell it for a profit. Or instead of waiting for the price to go up in order to make a big profit, the price keeps going down and making you lose.

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To avoid this, you can plan in advance at what number you will sell. The number that you think is already quite profitable in the midst of the current economic uncertainty.

Once you have reached that number, immediately sell without hesitation. Because this is based on your calculations. However, if according to your analysis, the price will reverse down, you should sell it to avoid the risk of losing too much.

5. Provide capital according to financial capacity

If you want to make a profit, of course you have to be prepared with capital. The money spent playing forex needs to be adjusted to financial capabilities. Avoid debt to be free from financial burdens.

If you are lucky, the debt can be paid. What if you lose? You yourself will be dizzy because you can’t afford it.

6. Train mentally to be stronger

Unlike stocks, in forex, you can be rich and poor in just seconds because prices are very volatile. So it is very important to train your mental strength to face all the risks that occur.

If one day you lose, you are not depressed or to end your life. This mentality you have to prepare. Even if the profit is big, it is not too euphoric because it is very natural to happen.