Forex Market has the largest trading volume among all investment markets in the world. The market offers investors hundreds of investment instruments and it also has very special features that will help you gain more. Here are 4 useful tips that will help you the get maximum profit in Forex Market:
 

1. You should allocate time for following your position in Forex

Traders often prefer their country's currency in the positions they open. This is because there is no time zone difference and other factors such as news or data can be followed easily. On the other hand, if instruments in different time zones are preferred, the data released during the day cannot be followed easily, and you may face with a big surprise when you wake up in the morning.

2. Consider your Collateral before opening a position

For example, opening a position on a high-cost instrument can risk your entire capital. On the other hand, lot sizes are also very important for keeping your positions open. Your position size is determined by the number of lots. And if you open a position on an instrument, which has high volatility, with a high lot size, a tiny movement against your will may end up as a 'margin call' (margin call occurs when the value of a margin account falls below the maintenance margin requirement of the broker or account). Before you start investing, you should know the average volatility of that instrument within a day and calculate how much collateral you can risk.
 

3. Do not trade only one instrument

Of course, trading only one instrument minimizes your risk compared to trading many instruments. However, this move increases your opportunity cost. This means; if you stick to one instrument, you will miss opportunities to gain profit on other instruments. In addition, trading multiple instruments can eliminate the risk of losing by hedging another instrument. For example, if you open a position in EURUSD and suffer from losses, you can open a position in XAUUSD (Gold) and minimize your losses and even make profits! However, if you trade in too many instruments, you will have to follow all news and data releases in connection with those instruments. This may be harmful for both your capital and mental health.
 

4. Macroeconomic Data Analysis is not the only way

While evaluating the instrument you choose, you should be able to easily access the macroeconomic data related to it. Price movements are highly affected by data releases. In addition, there are other variables that cause price fluctuations. Political events and geopolitical developments are significant factors. For example, a political crisis in USA may cause losses in USD or US index and can briefly rule out your macroeconomic data analysis.

To sum up, always have an alternative (or alternatives) in Forex. Arrange your time to follow data releases and take immediate actions. Avoid high-cost instruments when compared to your capital, and do not risk all your capital. Follow important political and geopolitical events as well as economic data in analysis process. Taking into account all these tips, you can choose the most suitable instrument for you and your capital and gain the best advantages in Forex Market.