Trading on Quotex as a beginner may certainly be exciting, but a proper mix of readiness and strategy will get you off to a great start with ease. The fundamentals of trading will easily be successful if one has to watch out strictly for proper risk management and get to grips with all the analytical tools used. In this article, I will share some tips that are most suitable for novices who are making their first steps into the trading world. I will also show you step by step how to use an indicator: Bollinger Bands (20) and Moving Average (MA) 10, so that you can make good trading decisions. In addition, I want to highlight the necessity of maintaining financial management or money management in every trading position that you are going to take.
The beginning of trading at Quotex may seem quite scary, but in simple reality, it is user-friendly even for people entering the world of trading. Your first approach should be in the understanding of the market you are trading. Quotex offers its customers a very broad range of choice among the assets: from currency pairs (forex) to commodities, from stocks to indices. Find one or two assets that you really understand well, and watch how one functions in response to its price. Do not be tempted to trade across numerous assets at the same time; rather, it is best to understand all there is about one than a little about many.
The technical indicators are among those tools that can help analyze the movement of prices. Two of the available ones, Bollinger Bands and Moving Average, are highly useful, particularly for beginners. The Bollinger Band is composed of three lines showing the volatility of the market. These three lines are the middle line-the Moving Average-the upper line, and the lower line. In essence, these lines help you understand whether the market is overbought or oversold. When the price is close to the upper line, price reversal on the downside can be expected. When the price is close to the lower line, this could be a potential rise in the price.
Meanwhile, the Moving Average has a period of 10, and it is an excellent indicator to catch trends on an intermediately short scale. The MA 10 line would serve you to see whether the current trend is up or down. Technically speaking, if the price is above MA 10, it reflects an uptrend, and below-an downtrend. It can be even more potent with two of these indicators used jointly. Such a strong signal to go long opens itself, for example, if the price tests the lower line of the Bollinger Bands and at the same time is at the top of the MA 10.
However, this is not to say that mere possession of sound analytic tools could suffice. Sound money management is crucial in trading. In essence, always have a clear plan of how much you intend to lose in a trade and how much you expect to make. Never risk more than 1-2% of the entire account balance on a single trade; this will save you from big losses in case the predictions go haywire.
Thirdly, discipline is essential in your trading plan. Either in winning or losing, one should not be misled by his feeling. If he wins, he should not feel overconfident and increase the amount of investments without a careful calculation. And if he loses, he should not rush to try recovering his money by trading impulsively. Emotion is often the largest enemy in trading, while discipline is the effective key to keeping emotion under control.
Also, as a beginner, always learn and improve yourself. One thing that is very important is to know that trading takes time and experience to master. Also, take your time to analyze each trade that you make, successful or unsuccessful. Note what worked and didn’t work and use that knowledge to be improving strategy in the future. Practice losing no money using a demo account that Quotex provided.
Quotex opens its gates with confident trading with indicators like Bollinger Bands and MA 10, not forgetting to keep good money management. Remember, the secret to success with trading is knowledge, strategy, and discipline. One should never stop learning and always be in control of emotions and risks. With the right approach, trading on Quotex can be a path to the financial success you have ever dreamt of.
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