How to do foreign exchange well and how to think like a professional foreign exchange trader

Many people want to know how to do a good job in foreign exchange. Today, I'd like to tell you how to think like a professional foreign exchange trader. If you are interested, come to understand and understand it~

1、 Don't make the deal complicated
For example, the first step in thinking for a professional trader is to simplify your thinking about charts. Complicating the trading process is one of the biggest stumbling blocks to amateur traders' profitability. It is not easy to make profits in the market, so we should not use inefficient and excessively complicated analysis tools, such as trading robots and numerous index parameters. The best analysis tool has always been a simple price trend trading strategy, because prices reflect all market variables and provide us with the most relevant and accurate view of financial markets.

2、 Don't worry about news and fundamentals
Traders really don't have to spend too much time on the analysis of foreign exchange fundamentals or news. Most successful foreign exchange traders use very simple technical strategies and don't worry too much about the impact of news because they know that any global foreign exchange news will eventually be reflected in the most common price chart.
So if you want to be able to think like our professional traders, please spend more time on price trend analysis. The price trend ultimately reflects the result of the news, which is the final impact of the news on the price, rather than the "possible" price changes implied by the news surface.

3、 Learn to trade on a longer timeline
Professional traders understand trading on a longer time axis because it provides clearer and useful market observations. Your focus should first be on learning to analyze day charts. The weekly table is more favorable for long-term trend analysis and market preference analysis. But as a novice trader, the cultivation of trading psychology is very important. I usually only use daily charts, and rarely use charts less than 4 hours.

The reason why you learn to trade on a longer time axis is that it naturally filters out a lot of interference; it helps you eliminate most of the "random" intraday price movements and provides more relevant performance. And a shorter time frame can make trading signals less accurate. It's a big taboo for me to analyze charts. I'd rather trade precisely like a sniper than a machine gun.


4、 Avoid emotional Trading
Emotional trading is definitely one of the reasons why amateur traders make wrong trading decisions. There are two emotional mistakes they often make. The first is that they usually can't manage their own funds well. Improper foreign exchange fund management usually means too high risk. They don't stand at the time of profit taking or stop loss when they should stop.
Professional traders will consciously control their emotions to ensure that their funds are properly managed. It can be said that good money management habits are the basis to avoid becoming emotional traders.

5、 Track your deal
At the beginning of my career in trading, I decided to keep a record of every transaction I made so as to provide a clearer "clue" for my analysis. This clue is actually your foreign exchange trading plan and trading process.
But most traders are undisciplined, which is an important reason for their losses. If you want to be a professional trader, establishing your own trading discipline is essential or a prerequisite. As a result, your profitability will become more and more frequent, and eventually trading discipline will become a habit. You will not reject it, but will think of it before each transaction.
Track your trading history immediately. If you're in a losing streak, start all over again and start tracking every trade, while ensuring that you manage your risk effectively and trade as decisively and accurately as a sniper. Trust me, developing the habit of tracking transactions will definitely help you to think about trading like a professional trader.

6、 Master a set of effective trading strategies
An effective set of transactions is the basis for all other trading proposals. In addition, I also recommend price trend analysis strategy to novice traders because it is really easy to master and can be very efficient when used properly.
Learn the correct trading rules and focus on the daily chart first. It's not hard, but most traders can't do it. They will unconsciously become tired and emotional. It takes time to develop the right mindset for foreign exchange trading, but if you're not willing to invest your time and energy on it, your trading path will become more difficult.
The clarity and effectiveness of trading based on the price trend makes it one of the best trading strategies. At the same time, it can also cultivate your foreign exchange trading mentality and make you think like a professional foreign exchange trader.

The above is the answer to the question "how to do foreign exchange well and how to think like a professional foreign exchange trader". I believe you already know something about it. If you have any questions, you can leave a message on us~

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