Things I consider before taking a forex trade

[amakaokafor]

The first thing I consider before taking a trade is d direction of the market ,is it going up ,coming down or just going sideways,I would usually use my eyes to analyze if the market is going up or down,but one can also use moving average of 200,if the moving average is above the 200 line,then the market is going up(buying) if the market is below the 200 moving average line,then the market is coming down( selling) ,it is advisable to only buy in a uptrending market and sell in a down trending market

 

[Kingstone]

That could be true. But how about you join a moving train that has been selling for some time and it reverses the moment you enter into the trade or vice versa? I understand your strategy. You do not want to trade against the trend but that is not a safe approach unless you want to end in losses. I will not recommend that to anyone. In fact, I am more scared to enter a moving train than setting a stop loss. If you are sure, stop loss may not be that needed. But I am not saying it is not essential.

 

[Setho]

The first thing that you should try to know whenever you are ready to open a position is volume because whenever there is no trading volume there is usually an indication that there is uncertainty in the market and as such it is better that you should wait. You shouldn't consult your other technical indicators to give you a hint about where price can be able to go and if we are waiting on any bad fundamental news at the moment 40. You should learn be able to have your entry triggers and then your invalidation point where you will put your stop loss.

 

[Kingsley]

Before you venture into any form of business or trade that will involve you investing your time and money one should do a very thorough investigation of the business, it will be an error to venture into any business or trade based on peoples validation, rather than getting enough information about it yourself. I have had somany people brag about how one can make millions and billions of dollars overnight while trading forex, why this may appear to be true in the theoretical terms. In the real life it may not be true in practical terms. I have seen somany also invested into forex and today they are filled with regret.

The first things is understanding what you really want to do, forex trading is not meant for everyone, what works for one person might not work for another person no matter the effect the person has decided to put in it.

So first you must understand what you really want and know where your passion lies this is what will give you and keep you motivated in face of challenges. I can't tell you that it will always be a positive trade. It will be up and down. So please go and learn it properly before starting.