Apart from knowing the dos for the forex trading, it is equally important to know the donts. While trading at cfd trading South Africa, you need to keep in mind the following:
Avoid dollar cost averaging
There are certain slick traders that will end up adding to a position which is losing so that when or if the trader happens to turn around, they will be in a position to have an aggregate cost which is reduced and have great profits substantially. The main word here is that –if. It might be a good strategy in the long term to utilize when buying equities but it can be very risky when trading with currencies. To add to the winners sometimes referred to as layering, might be the best way to go.
Staying strong in will and mind
Be rational because, the markets might not always be rational, but you have to be. When the markets are behaving in a strange behavior or not conforming to what you expect, then you have to step aside. There will always be another day to try and other trades to engage in.
Keep an open mind
A tree can either bend with the wind or it could break. The main key is flexibility to long term success and survival. Markets do change. Indeed, the markets keep on changing. Most traders for instance, have noted that, during 2012, markets did change because of the increased algorithm use and high speed trading systems that were deployed by the banks. If you are a trader, you have to adapt.
Review the various online brokers to get the right one for yourself
You have to ensure that your forex broker is auditioned. The most important trading decision is to pick the right forex broker. That is the place that you are required to read forex brokers reviews. Leverage, spreads, and technology of the platform are quiet important, but it is also about reputation. Reviews which are poor on the websites of the bureau might not tell the entire story, but it has to be considered going around choosing a broker to trust with your cash.
Figuring out which trading strategy works for you the best
Try out new strategies for trading. If you are not ready to learn, then you die. Conditions normally change and thus you should. By testing constantly, developing and learning new strategies, you are able to be ahead of the market. As individual traders, the real edge is both technical constant analysis and fundamental and a constant adjustment of your attitudes towards the trading.
The passion to the task as trading is regarded as an art. It normally takes dedication and time to do it better, but it also takes a particular degree of passion. Most traders tend to be quite miserable on weekends because they cannot wait until the opening of markets to start to trade. There are those wh tend to accomplish more by doing things which they love. Nothing can be compared to doing something that you love and make money also.