Top 7 tips for beginners – Forex Trading
Sometimes Forex Trading can be overwhelming and because of the information that is available certain aspects are not quite so clear. Consider this guide to be a source of information that will guide you as you take the first steps into your Forex Trading career.
The first thing you need to understand is that you have to take it slow and be patient, you will eventually grasp all the necessary skills to become a great trader.
Do not jump into the market with no ‘knowledge’, you have to learn how markets work and what makes them tick. We are talking about your money; it is not a good idea to just throw them away. Take the right steps and start by learning. If you decide to learn after you first lost money you didn’t get it. Save your money and start with the proper education.
Get the proper distance with stop losses
Place the stop losses at a secure distance away from the entry price. Because the market always moves if you place them too close you have a chance to get stopped before the market ever had a chance to favor you. Stop losses are tricky understand that planning the stop is critical, so you have to place the stop properly so you will not get stopped before the move you were waiting occurred.
Daily chart importance
Get a proper understanding of the trading price action on the daily chart before you start to do anything else. The time frame is very important, and you must train yourself to get the useful things that can favor your plans and strategy.
Don’t trade too much
Have patience and it will come to you. There is nothing more destructive than trading too much. You will be opened to more mistakes, especially in the beginning. More emotional trading will occur, and you will find yourself with a destroyed account and a low self-esteem.
Stop dreaming of high profits with a minimum investment. You can get money that is without a doubt, in the beginning however, you have to take it slow. Be aware that people talking about fabulous wins overnight are either scammers or they do not know what they are talking about. Keep yourself mentally strong and do not fall for this traps as they can prove to be devastating.
Price action focus
Use logical thinking and do not over complicate things, following the price action come naturally. Leave aside the charts and the indicators for a while and do not clutter too much info all at once. Look for the changes that appear in the price action and use discipline to make sure you do not go overboard.
Keep calm even when trades move against you
Steel nerves are required when trading, it is especially important to keep calm when trades get a little messy. Trades that move against you are common and normal; they can also transform into huge winners. To stay in the safe zone keep the stop-loss at a secure distance so you can manage losing.
This mini guide has been set up so that you can get a head start knowing what to do and when to do it. The aspects discussed here will help you in setting up a strategy. Follow the strategy you’ve worked out and keep a close look on what is going on with your trading habits. Take the time to develop all of the topics and you will hopefully see a change.