There’s a certain buzz around trading these days, mainly as a result of the volatility of the markets currently. Forex exchange () in particular is the most liquid financial market in the world, trading more than $6 trillion every day. It is a highly volatile market where one can make lots of profits but can also lose significant amounts.

Dubai, being rich in oil, has a great effect on all types of markets, including forex. This is because a surge in global oil prices will always affect the price of major currency pairs. Therefore, traders must be aware of the market situation in Dubai when trading. But that is not the only important information that traders need – choosing a reliable platform like metatrader 4 is also a key factor that determines the success of a trader.

What should a beginner trader in Dubai know?

As a beginner trader, you must be equipped with market knowledge. Understanding how the markets works is a prerequisite for any trading activity whether in Dubai or elsewhere. Just to get you started, we’ve prepared a list of important tips that will help you maneuver through the complex world of trading.

Don’t strive to be rich quickly

Trading is a journey that you need to start and enjoy every step involved. Many novice traders are excited about the prospects of becoming overnight millionaires. Don’t strive to be rich too quickly because you might end up losing your money. In Dubai especially, the magnificence and the wealth around you can seem very tempting. However, you must remember that the elite of Dubai did not become millionaires in a day. It’s a process. It takes time.

The best way to cushion yourself is to avoid using too much leverage. This will ensure that you can monitor your losses in case the market is not favorable to your market decisions.

Use stop-loss orders

Dubai can be very tempting to want to make money continuously. After all, there is always an exciting way to spend your money in Dubai, including many attractive investments. However, you should be cautious. Using stop-loss orders is one of the ways of reducing risks. It helps to stop excess losses that you may be experiencing. The Dubai Financial Market can get extremely turbulent at times, especially towards closing hours. Similarly, you should put a stop profit order that collects your profits and exits the market when you reach your target.

Learn your market

Trading can be complex if you don’t understand the market dynamics. Dubai’s market acts differently than NYSE, FTSE and TSX, due to its characteristics. Changes in global oil prices, for example, may have a bigger effect on this market. Therefore, traders must understand the surrounding market factors that influence buy/sell decisions. Using technical analysis tools is also a way of analyzing the market trends.

Take emotions out of the trading

Always remember that reading with emotions always leads to bad decisions. Whether you are on a winning or losing trend, you should not become emotional in your buy/sell decisions. Be an objective trader who examines the market devoid of any emotional attachment.

Do these tips guarantee profits?

Well, there is never a guarantee in trading. However, these tips are useful in guiding your decisions. They help you reflect on the market dynamics and decide as an informed trader.