Some tips to help your trading going into the new year
No doubt, a quick internet search will yield a plethora of forex trading tips and strategies. The problem with many of these are now dated and are either no longer valid or need to be tweaked so as to be applicable to current lines of thinking.
The tips and forex strategies for 2020 that you see listed below can be put to use immediately and should also prove helpful throughout the coming year.
Tip #1: Embrace Cryptocurrency Trading
If you’ve been bypassing digital assets, now is the time to give them a serious look. Massive profits have been generated by those who traded cryptos throughout 2019, as these assets provided clear, strong price trends to trade upon.
Top brokers such as EagleFX are now offering a wide variety of cryptocurrencies for traders to trade on, thus providing unlimited profit opportunities.
Tip #2: Work Smarter Rather than Harder
Modern platform tools render the analysis process easier and more accurate than ever before. Move past any old, time-consuming analysis processes and embrace these tools in order to save time and boost profits.
Tip #3: Don’t be Fooled – The Trend Is Still Your Friend
Yes, there are plenty of new strategies that require you to trade against the trend, but don’t be fooled. Even in 2020, trend trading is still the way to go. Trading against the trend consistently will only lead to unnecessary losses.
Tip #4: Protect Against Unexpected News
If 2019 has taught us anything, it would be that unexpected news can wreak havoc on the markets. Always set a stop loss. Not because you expect to lose, but instead to protect your account from the potential of a large loss brought about by unexpected news.
Tip #5: Always Use a Demo Account
Even if you’ve been trading for years, always use a demo account to test strategies. Brokers such as EagleFX offer unlimited demo accounts with no obligation and no deposit requirements. Why test a strategy with your hard-earned money when you can test using mock funds?
Tip #6: Never Trade The News
For years we heard about trading just prior to, during, or just after market altering news was released. Today, we know that the best plan of action is to look for opportunities to trade once the dust has settled. In other words, allow the price action tell you whether the news caused the market to be bullish or bearish.
Tip #7: Utilize Using a Mean Reversion Tool
Want to avoid entering into overextended markets? Use EMAs as a means reversion tool. Watch for the bearish or bullish signals that come from seeing an asset price move above or go below your selected levels.
Tip #8: Get to Know Your Broker Better
Your broker is much more than a platform provider and payments processor. Let’s say that your power goes out and you need to close a trade. Is your broker available around the clock? Can they be reached via phone? Brokers such as EagleFX take a “client first” approach and therefore make a good choice for those seeking a full-service firm.
Tip #9: Stop Ignoring Long-Term Trends
There is little to be learned from short-term price analysis. Long-term price action tells so much about what to expect from an asset. Consider ditching the less reliable short-term trades and opt instead for the lessened risk level that comes with being a wise and patient long-term trend trader.
Tip #10: Limit Financial Risk Using Micro Lots
Forex brokers such as the aforementioned EagleFX now allow their clients to trade in micro lots, using trade sizes as small as 0.01 lot. If you’re new to trading or simply are not confident in a trade, but want to trade anyway, consider using these smaller trade sizes as a means to limit financial risk.
As time passes, traders are provided with more education, better strategies, and are given access to incredible brokers such as EagleFX. Clearly, there has never been a better time to trade forex, with 2020 looking to be a year of record-setting profits for those that do.
Consider using the tips and strategies listed here to help ensure that you make the most of the limitless profit opportunities that come your way in the coming year.
This article was submitted by EagleFX.