Learn to trade, the first step towards success
Forex market currency trading
This article will provide an introduction for those looking to enter the world of trading, especially at a time when learning to trade is easier than ever and technological advancements allow the general public to gain access to financial markets. The rise of electronic trading, and the emergence of trading programs and platforms. So let's learn how to easily learn to trade in the next few lines.
What is the concept of transaction?
Most of us are constantly trading in our daily lives, even though we don't realize we are doing it. For example, anything we buy from a store is a currency exchange for the good or service we buy. Thus, the concept of trade can be reduced to the exchange of one commodity for another. Usually, when the word trade is applied to an action, we immediately know that an item or something has been exchanged for money, or in other words, buying from one person to sell to another .
Transactions are largely determined by general supply and demand, as a person or group of people may wish to buy change in response to changes in supply and demand, and a high demand for a commodity or financial asset means that there are a large number of people willing to pay the price to acquire it and therefore demand for the commodity An increase in demand will increase its price or value because it requires a large number of people.
On the other hand, a high supply of a commodity means that there are no buying orders, or that the supply exceeds demand, causing its price to drop to attract interest. Customers buy it.
Let's review the following example together to understand the theme more clearly
Let's say you're in the car market - that is, the exchange of cars - which is the object here - exchanging money, and you want to buy a specific model that can only be found in a store that only has one. is one model, so if you're the only buyer in the store, you're likely to get a fair price, but if there are multiple buyers wanting to get the same model, it means competition among them. will get it, and in this case, traders are expected to increase the price because there are a large number of people willing to pay for it, which explains the first principle in the concept of trading, which is "high demand-desire". Get - resulting in higher prices. "
On the other hand, suppose the store has 10 cars of the model you want to buy, and there are only two buyers. In this case, the store is expected to lower the price of the car to attract more buyers. Figures, this move confirms the second The axiom of trade, which is that "higher supply - or supply of goods - causes prices to fall."
So the above can be summed up by stating that the trade process works by exchanging things of equivalent value and that value is determined by the forces of supply and demand, the trade process has evolved over many years and in each case from bartering for the same The time it takes to exchange goods for gold or other metals and finally exchange them in various forms (cash, credit, electronic or digital) is different than exchanging goods for money.
Learn the skills you need before trading
After familiarizing yourself with the concept of transactions and what transactions are, you must know that transactions are not limited to daily transactions and exchanges, and transactions are not limited to commercial transactions. With the existence of various financial markets, a business and Its concept differs between speculation and investment, and there are certain traits of a trader that make an individual successful in it. There are several basic characteristics that distinguish successful traders from the rest.
It should be remembered that success in business is not accidental, but a lot of effort in education, trial and error and continuous development, perhaps over a long period of time.
Below we review the most important characteristics of a trader
1. The ability to continuously learn and experiment
You must have a goal to learn the trade and turn the basics into something fun. Trading is like any other profession or craft you have to learn, not just stripping things down but having a complete understanding and knowledge of the details. The market is inherently dynamic, ever-changing and influenced by many external factors and news, there is something new every day, and your learning process must be enjoyable in order to make the most of what you learn.
Most traders succeed when they learn from their past mistakes and don't repeat them, because the only way to get there is to learn from past mistakes and avoid them.
Always remember that you can't beat the market and you can't get back on it or its obstinacy. Some traders have achieved great success. This made him overconfident to the point of hubris, leading him to take big risks, which ultimately resulted in huge losses. Also, don't try to get back when the market takes a loss. Or the stubbornness of the market trend, give yourself the opportunity to understand the cause of the loss, so as to avoid the loss. Take the next step to trade and thus succeed.
2. Risk management before profit:
Risk is a major part of the trading process, accepting risk, understanding why and focusing on managing it is one of the most important factors in successfully managing trades, but most beginners and inexperienced traders only focus on profit Trading is just a no The quick-gain approach of risk management, which exposes them to ways that lead to losses, forgets the monthly rule of "amount at risk". Where profits come from", that doesn't mean you should always increase your risk in the hope of higher profits.
3. Discipline and patience
Patience and dreaming are among the qualities that a successful trader always possesses, which helps him to make sound investment decisions without being reckless.
There is no one successful strategy or method that works and turns a profit all the time. The main factor in trading success is the discipline of the way you invest, the discipline of preparing and executing this trading plan, and profiting according to how you achieve your goals from the process of trading.
4. Treat the market fairly
One of the characteristics of a successful trader is a realistic and objective view of the market and on the basis of this he can set correct expectations that are closer to reality and besides having all the information you need to have a clear picture of the situation. What trades are you thinking, a trader must be organized and decisive when making decisions, it helps to organize your investments and know the success rate of each trade, as well as the failure and success of the total funds. trackable
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