5 Trading Tips for Beginners
Starting out in Forex trading can be daunting and overwhelming. It's easy to feel lost and get buried under the sheer amount of information available. The best thing you can do for both your trading and your peace of mind is to take it slowly.
Here, there are 10 basic points for Forex beginners:
- Start with the basics – this may seem obvious, but it is amazing how many people actually jump feet first into the markets without any knowledge of the market they are trading. Take your time to understand how the forex market works before trying to learn trading strategies.
- Stick to one strategy - there are so many different trading strategies out there that it can be tempting to keep changing every time you trade. Don’t. Stick to one trading strategy which you consider to be logical and easy to understand. Try to master that strategy. Don’t swap just because you lost a few traders, any strategy will provide some losing trades.
- Keep emotions in check– when a trade starts moving against you don’t panic and rush to close it out. You may find that on a demo account you are perfectly fine with losses, yet on a live account you panic. This is quite a normal reaction, but one that needs to be controlled. Make sure your trades have stop orders and limits, then there is no need to watch.
- Don’t overtrade – overtrading is one of the biggest reasons that winning account can become losing accounts. It is important to know when to walk away and not to chase the next profit. The thought “the next one will be the winner” is rarely correct and when you start trading under that mindset you rarely plan your trade properly.
- Be realistic – you are not going to turn into a star trader overnight, it takes patience and practice and realistic goals. Yes, of course, you can make money trading the forex markets, but as with everything it comes at a cost. That cost is time, patience and education, in addition to a whole host of mistakes along the way.
When starting out, choose a broker which offers its clients an excellent educational programme: Forex Brokers List
■ ForexExperts Blog
(2018)
