Success in international exchange trading largely depends on the right choice of a reliable broker
It is quite natural that the trading methodology, setting stop-losses and take-profits, choosing trading time and many other nuances are individual for everyone and depend on the trader's skills, experience and character. At the same time, as experts note, there is a necessary set of rules common to all, which are followed by both novice traders and market veterans.
The first thing to note is planning. If trading on the Forex market is not just entertainment for you, but a means of earning money, then you need to treat it the same way as a real business. Planning will help you set short-term and long-term goals, organize and systematize your knowledge, and calculate possible risks, thus protecting yourself from them.
A well-designed trading plan with allowable drawdowns and realistically possible profit will prevent you from impulsive actions. It will also allow you to act with cold calculation and minimal influence of emotions, which are often the cause of a trader's capital loss.
When planning trading, regardless of skill level, it is advisable and reasonable to set allowable drawdown and profit levels in a ratio of 1:3, both on individual trades and throughout the entire trading planning process. In all open positions, the total allowable risk level should not exceed 30-35% of the total capital.
Also, do not forget about simple and important rules: trading against the trend is undesirable and risky, and a stop-loss level not set is playing Russian roulette. You cannot open a position based only on technical analysis results, which is often done by novice traders. Always conduct the most complete market analysis. Each position is a potential profit, it is worth using your head and taking into account as many indicators as possible.
It is advisable to keep a history of your own trades, so you can realistically assess your actions and take into account not only the results of market analysis, but also evaluate your capabilities. Constantly develop, study tools, monitor the situation, analyze. Third-party analytics is undoubtedly a useful thing, but you should not trust it completely. Learn to draw your own conclusions, gain experience and knowledge.