The foreign exchange market is about making profitable trades in the ever-fluctuating market. If you don’t know what to look out for, how can you be confident of your success? I can tell you one thing; forex trading isn’t easy. You may have experienced traders who make millions off the market, but it doesn’t mean everyone will be able to do the same.
How to become a successful trader
To successfully trade, you must have many factors working in your favour. Firstly, always be aware of current events that affect economies worldwide. This way, when there are economic news releases or changes in key interest rates, you are well prepared to take advantage of any sudden movement in prices.
Secondly, successful traders use technical analysis to help them decide when to enter and exit a trade. This involves using indicators, patterns and trends to identify opportunities in the market. A third important factor is risk management. You need to be aware of how much you are risking on any one trade, as well as how much you could potentially lose if the trade goes against you.
Fourth, always use stop losses to protect your profits and limit your losses. Finally, it’s also essential to have a trading plan in place to know what you’re aiming for and what steps you will take along the way.
Tips for trading forex in Singapore
Now that we’ve gone over some basics let’s look at tips specifically for trading forex in Singapore.
Forex trading in Singapore is much like trading in any other market, except you can access a range of one-touch options. One-touch options provide traders with an easy way to get involved in the market with little risk and can offer great rewards. However, you must first identify your goal to choose the correct option. Do you want to take advantage of a specific price movement? Or do you want to avoid being on the opposite side of a volatile move?
Once you have answered this question, it’s time to look for some high-probability setups. Keep in mind that these trades will only be valid if they reach your predetermined profit target within a specific time frame; otherwise, there isn’t enough time left in the trade for it to be worthwhile.
One-Touch Options are contracts with an exercise price of 100% or less of the underlying spot price at the time of the trade as long as the contract has not expired. This means that they expire either on a preset date or during specific trading hours if they haven’t been closed before then. As such, holding on to these options too long could result in them being worth nothing.
Finally, always remember that one-touch options tend to see a lot of volatility, so only enter trades where there is no doubt about the price action, and you have identified clear support and resistance levels. If you can do this successfully, you should be well on your way to becoming a better trader.
Boundary or range options
The final type of option is a boundary or range option. This is where you predict that the asset price will stay within a specific range or boundaries. These options payout if the underlying hits one of two predetermined levels, which are set when the contract is bought
There are many different options, and each has its risks and rewards. However, you can formulate a trading plan that suits your individual needs by understanding the basics. So, whether you’re a pro or a new trader, make sure you understand how to trade forex and use a reputable online broker from Saxo Bank. Trade on a demo account and explore all the aspects of forex trading like a pro.