Currently, the foreign exchange industry has been growing. The retail foreign exchange has reached $380 billion, which doubled since 2007. With its rising popularity, more and more people are attracted into entering Foreign Exchange or Forex Trading in Singapore. With opportunities for a higher income, many are interested to trade in this multi-billion market. Here are four simple steps in increasing your chances of success in forex trading.
Manage your money
First, have a disciplined trading attitude by managing your money wisely. Before devising on a profitable trading strategy, first you should only trade the amount of money that you can afford to lose. As a beginner, make sure that you have enough trading capital for at least 40 trades. Also, a good gauge is to just risk 3 percent of your trading capital per trade to avoid emotional decisions when a loss happens.
Identify your Time Frame
Choose the time frame you want to conduct your trade. A five-minute chart could present less risk but lower yields. Weekly charts may give overnights risks but increased chances of earning high. You could also decide whether or not you want to do short term scalping – which may give low risks but small earnings and vice-versa.
Choose your method
Once you have decided on the type of time frame you prefer, you can choose whether or not you can buy support and sell resistance, buy or sell breakouts, as or use indicator trades such as MACD and crossovers. Test some strategies and see what works for you and your temperament.
Choose, Identify, and Manage
The Foreign Exchange market is a tempting and lucrative field, but you should make sure you are well-informed and prepared to face the consequences. Make sure that you evaluate your attitude towards risk taking. Consider how much are you willing to lose and how far do you want to go.