From year to year a number of online traders is growing in the Financial market of Singapore. But despite of progress in indicators and signals still there are a lot of traders who make mistakes and loose their funds. In this article we would like to discuss what prevents the new traders from becoming professionals and succeed in Forex trading. In addition we will be glad to share our experience on Forex trading and provide the newbie Singapore traders with some valuable tips that can be applied not only on Forex market, but in all financial markets in general.
1. Lack of knowledge. In many cases people start trading online after just reading some articles about Forex trading or without it at all. It is almost impossible to learn Forex trading on theory. Of course it is very important to know some facts about Forex and read materials before you start trading, though the main thing in Forex trading is practice. Most of Singapore brokers provide free demo accounts where everyone can practice with real quotes. Only after that you can carefully start working with real money.
2. Too much haste and self-confidence. According to statistics, those traders who passed a trading course or trading seminars usually earn money in the first period of time, but quickly loose everything afterwards. The problem is that during the first few months new traders trade very carefully according to the rules they learned. But after they make some profit they become more confident in their trading and think that online trading is a very simple thing and some rules are not necessary. This is a very dangerous moment when the new traders start neglecting the rules. The main rule in Forex trading is following the rules of the strategy all the time.
3. Trading against the trend. Many of the new traders on Forex market loose their deposits for this reason. There is a rule on Forex market: trend is your friend. Don’t think that you are cleverer than the others. When there is a trend, you must trade with a crowd in order to make profit.
4. Too much trust to signals, automatically trading systems and guru of the financial markets. Remember that the decision about trading must be only yours. It is your money that you trade with and if you loose nobody will take a responsibility for that.
5. Lack of a trading plan. At any time, disregarding on the market’s behavior you should know what to do at the moment. In order to make your trading organized and less risky we recommend (especially to the beginners) keep a diary of your trades where you note the indicators you use, reasons for entering and leaving the market, stop loss and take profit levels, etc.
We hope that these tips were useful for you and will help you improve your trading on Forex market. Good luck.