If you are good in mind games then you will be successful in the Forex auto trade as well, that is what experts say to all novices. Making profits in the Forex is not as simple as many beginners suppose however it is not too complicated as well. The main task is to use the fact the Forex market is very volatile and logically get benefits from this by exchanging the world currencies one for another at the most appropriate moment.
Practically all Forex auto trade positions concern buying at lower prices and then reselling at higher prices within one or few currency pairs. The key aspect every novice should figure out is that the world Forex market development impacts on exchange rates of currencies significantly. This means that a good trader should always trace and react to those economical and political events that may affect those two currencies which are involved into the chosen currency pair a trader uses to conduct his short and long Forex auto trade positions.
The influence of the so called import-export trends should be considered as well especially if you are going to be successful in the most trades you make. Taking into account these factors impacting on Forex auto trade positions traders choose to follow the so called day Forex strategies, or on the contrary select to follow weekly or even monthly Forex charts sticking to long positions trading.
Trading with long positions has its advantages mainly because in such case it is easier to reduce risks and indentify prospectively profitable opportunities for more accurate trading.
As it was mentioned above in order to enter the Forex market a Forex auto trade follower may choose to follow whether long (buy) or short (sell) trading options.
In long position in particular a trader makes his strategy basing on the thesis that currencies relations develop against one another because of the Forex market forces which can be set only in the long term. Sometimes novices ask how long position trading can be profitable if short term trading is quicker and provided within one day bringing constant profits. In fact short position trading which has its advantages is more risky and will suit foremost those people who are into the Forex trading on a regular base. Long position trading will be perfect for people who have other full-time jobs and are ready to wait in order to get higher profits with reduced risks of losing money. It is up to you to decide to what of these two techniques to stick but this time we will concentrate on long trading positions used in the Forex auto trade.
How to Provide Long Forex Auto Trade Positions?
The following tips will be quite useful especially if you have just started to discover the basics of Forex trading and can be patient enough to provide long term trades:
1) You need to test your style of Forex auto trade within a demo account
Well, it is recommendable to try your forces within one of special demo accounts where your broker can offer for you to practice in the conditions which are very similar to real live Forex trading. Experience and theoretical knowledge along with certain practical skills will help you to enter the market more confidently.
2) You need to learn how to follow the current Forex trend
Getting profits can be easier if you know how to follow the Forex trend reflecting the long positions. In a case you won’t follow the trend and trade against it you need to focus on your trades with maximum attention and possession to achieve trading aims.
3) You need to calculate the risks properly
There is the perfect combination for risk/reward opportunity you need to stick to – 1:3. This combo means that your possible money risks are three times lower than potential profits.