A Few Kickass Forex Trading Tricks

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Forex Trading Tricks
Forex Trading Tricks

To avoid frustration when trading, be equipped with forex tricks which are proven to be effective in trading. Here are some of them.

Simplicity

Simplicity is money should be your motto. This means that you should use simple strategy when trading to avoid confusion. This is especially when you are still a novice. However, even smart seasoned traders adopt this concept. If you opt to use software, choose one that is not full of many features so that you concentrate in trading and not in the software.

Short Positions

Because the forex market changes in seconds, try not to maintain a position long enough. This hinders you from opportunities to trade with other favorable positions that are open. Likewise, this is dangerous because your position might be scratched resulting in a profit lost. The best forex trick is to maintain at least 2 or 3 short positions. Although, short positions earn small pips, it becomes decent earning if it is regularly occasionally. For example, 10 small pips with earnings of .002 when added may result to .02 which is not bad. If this is maintained, it is a better technique.

Hedging

Protect your investment through hedging. This is a method where a trader may initiate to stay on both sides of the currency pair. Doing this may counter act the effect of the other. If the other currency is going strong but which is predicted to be dangerous, staying in the other pair may balance the effect of it. This means you may you may not win and you may not lose. Among the several forex tricks, this is somehow applicable to seasoned traders and not so much for a newbie because the technique is a bit complicated.

There are many other tricks out there but these are the most important ones to consider.