You are almost anonymous on the international foreign exchange market. So are your trading decisions. Every single deal should be treated like an independent event, unless the string of deals is a part of your strategy. Since the psyche of the trader affects the efficiency of trading to a huge degree, it is important to create a friendly environment. In such a setting, the trader can minimalize the influence of the emotions on a decision–making process. That is why the entrance and exit moments must be subject to highly objectified principles. It means, that even if you do not have a fully automated strategy, you must have a clear description of conditions, which must achieved in order to open a position. It might be a combination of technical signals and indicators. You can get them via the social trading. Almost every forex broker offers their clients access to such platforms, where you can learn, which signals are used by top traders and how they open and close positions. MT4 does not only grants access to top traders information, but also verifies the credibility of a signal donor. Untruthful donors may use forex demo or have more than one forex account. Forex demo account lets traders gain losses on these accounts and forge profits on real account.
When entering the market, you must set a maximum possible loss that you can accept. Setting a stop-loss order is recommended after opening a position. You cannot control the market, but you can control the amount of losses on one transaction. This level has a certain importance for capital management. It is stressed that one should not risk more than 3 percent of his or her capital in one transaction. Stop-loss order must be well-thought before setting. Only best forex brokers will execute stop-loss orders promptly, others just try to be better of their clients or even set their clients against each other, creating a broker controlled intra-market.