Have you ever colored yourself with the colors of share market? Have you ever studied about how investors choose a company to trade in? If yes, then you must be familiar that, apart from checking the price and PE ratio of the enterprise there are n number of things that an investor has to be confident about his strategy. He has to check the financial statements, management, where the company is standing, internal news about the company, products, position against the competitors, etc to analyze the strength and weakness.
Don’t worry, forex does not demand this much, but still, you have to study and before going on the floor, following things should be at your fingertips:
- The general trend of the market. Is it going up or down?
- Economics of your chosen currency. Is it strong or weak? Is it major or minor? What are the volumes? Etc.
- Behavior characteristics. How is the currency moving on an hourly, weekly, daily and monthly basis? What is the pace of the movement? Is it slow or spiking?
- How to compare different period charts?
- Comparison of the current market price with the weekly, monthly and yearly movements.
- The list does not end here…….it goes on and to trade successfully, you have to master everything as one can get a better indication only when he looks at the market by combining all these factors.
Becoming a successful trader in the forex market is a journey that you have to complete as otherwise, you will only face disappointments. Every successful trader has completed this journey to reach a height where they are now.
Improve your success ratio by studying the markets in and out. Do not leave any stone unturned which can go against you. Choose a limited number of currencies and invest in that only. Everything about the chosen currency should be at your fingertips. Be confident about your strategies and do not afraid of markets taking a turn for a while.
Many of you must be thinking that now, that you have studied everything, practiced on the demo account and are confident about the analysis and strategy; there should be no devil left!
Dear traders, when you are over-confident about your strategies, you tend to over-leverage which is our Devil #7. This devil has destroyed many accounts and pushed a lot of traders to a state of depression. Why? Let’s find out…….