3 Tips for Forex Beginners. You Have To Know This!

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12 forex tips for a beginner from a beginner

Tips for a newbie on forex from a beginner with 1 year trading experience. What are the main mistakes a newcomer to the forex market makes. What difficulties does he have and how to deal with them.

There are a lot of tips for trading in the foreign exchange market, but they are all of a general nature, so newcomers violate them. But in everything you need to know the measure. Over the year of trading, I have developed some opinion regarding trading, and I want to share my little experience with some tips for a beginner.

  1. Everyone is advised to run a trading strategy and start trading on a demo account. I believe that on a demo you only need to learn how to press buttons, and everything else needs to learn in real life. Of course, these should be cent accounts. Yes, Forex trading requires investment. But let it be 10-20 dollars, which will not bring you significant financial inconvenience in case of loss. Again many Brokers provide free reals for trading with the ability to withdraw profits. Such accounts can be up to $ 500. This is a great opportunity for a beginner, you can not even trade on your hard-earned money.
  2. Based on my own experience, I can say that newcomers most often can make a mistake with the entry point, the size of the take / stop. Of course, over time, everyone will learn to more clearly define these points. But first, I advise you to close deals with a profit of 20-30 points with your hands.
  3. If your transaction has been in a drawdown for a long time, and you have finally reached zero or profit, close it immediately, do not wait for a profit. Most likely, there will not be any profit, since a mistake was made with the input initially.
  4. Before the release of important news and speeches, I advise you to close the profit trade or at least transfer it to breakeven.
  5. Learn the main points of technical analysis – patterns and levels. Track their work on history. Most likely you will find many patterns. To trade, choose the most technical currency pairs, it is better not to trade cross rates.
  6. Do not look for the Grail, better create your own. The simpler the better!
  7. Read analytics, but do not trust it 100%. Listen to the inner voice and make a deal only if you are 100% sure of it.
  8. A separate topic is stop orders. It is best for a beginner to trade within the day, since long stops need large stops to trade in the long term, and a beginner cannot pull them.
  9. Beginners very often overstate a lot, opening several transactions in one direction and an overestimated volume. I advise you to quickly close them upon reaching the total profit on all transactions, since the opposite is fraught with a drain of the deposit. Of course, it is better not to practice such trading in principle.
  10. I advise you not to wait for profit in the first year of trading, most likely it will not be. Do not despair! Not everyone makes money on Forex, especially in the first years of training.
  11. Do not have high hopes for a quick and large income from Forex trading.
  12. Do not get arrogant and do not become dependent on the market. You cannot change anything.

Surely you will have your own items to add to this list. Let’s discuss them Online.

10 Forex Tips Every Brand new Trader should know

The very most important thing I can tell you is to take a slow roll because this is going to be a marathon not a sprint. Here is what I believe is the first 10 things you should do as a new trader:

1. Open a demo account with your broker of choice. Make sure it is a good broker too!

2. Invest in your education by joining a community like ForexFactory.com and learning from others. Or invest in someone to teach and if you do decide to be taught, in my opinion your training should include: Live Daily Coaching, Rules Based Strategies, Software & Tools, and most importantly, Personal Coaching & a Business Plan. Education is key and finding great teachers in the world of trading is not an easy task. Use your educational funds wisely!

2.5 Do not try to tackle trading on your own, I personally think we all have tried doing so at one point thinking we are too smart, only to be corrected. while some really have, most of us do not have that type of awesome gift.

3. Learn basic forex trading language. First terms should include support, resistance, trend, range bound, pip, short position, long position, a lot of one particular currency pair, and the six major currency pairs (IMPORTANT) , price action.

4. Learn to set up your plat form, enter a trade, and exit a trade. Get Familiar with it and by then you should have already decided what time you are going to trade and what type of trader you are going to be.

5. Learn to be patient, do nothing much of the time and watch price action on a chart. ( by now you should already be testing a strategy and following your RULES )

6. Keep a trading journal from day 1 and write everything you think is important. What do you see on the charts? What are your questions? And how do you feel when you took the trade. How big was your position size . etc.

7. Lets be logical guys. Dont trade with money you cant afford to lose. ( DUH ) If you do go live, PLEASE start with small trading positions, a lot of people over leverage their account and can’t take the heat. start off small with MINI LOTS and slowly move your way up!!

8. Dont think in dollars think in pips. Simple.

9. Dont try to pay bills with your trading. I am sure it all sounds good to know people really are trading full time, but if you only have a small dollar account and think you are going to be rich over night, you are out of your mind. Be as realistic as possible.

10. Keep your job to ensure steady cash flow while you learn. ( IMPORTANT ALSO ) haha so don’t fire your boss yet! The time will come, you just need to prepare.

FINAL Thoughts
I think many people come to trading with the wrong perception as to what it is going to take to become a consistently profitable trader.
There are no true get rich quick strategies out there; its all hard work , experience and screen time.
Be the tortoise not the hare! And remember the only way you can truly fail is to give up.
Profitable trading to all!

Forex Terms Every Beginner Must Know. Top 10

The Forex market may seem intimidating to traders who are just starting out. One of the first things you’ll notice is that there is specific terminology used in Forex, which seems intricate and confusing if you’re not familiar with it. To help all newbies, we have outlined the top 10 basic Forex terms that you must know and understand in order to be successful.

1. Forex

Forex (Foreign Exchange Market) is the market in which currencies are traded. It is the largest and most liquid market in the world, with a daily turnover of $4 trillion every day. All participants in the Forex market are trading currencies and are speculating that the price of one currency pair will either increase or decrease compared to another currency. The ultimate goal is to make a profit from each transaction. You can trade Forex 24 hours a day, online from your computer with the services of a Forex broker.

2. Currency pair

A currency pair is made of two currencies, where one is bought and the other is sold, and vice versa. There are more than 100 currency pairs that can be traded, but the most popular ones are the “Major Currency Pairs” which include: EUR/USD, GBP/USD, USD/CAD, USD/CHF, USD/JPY, AUD/USD, and others. The two currencies together make up a price quote at the financial market, which is constantly changing.

3. Pip

A pip is the smallest price movement a currency can make in the upward or downward direction. Currency prices are usually always quoted with four digits after the decimal point and the last digit is called the pip. For example, with EUR/USD 1 pip = 0.0001, for currency pairs involving the Japanese Yen USD/JPY 1 pip = 0.01.

4. Spread

The spread is the difference between the Bid (Buy) price and Ask (Sell) price of the currency pair, shown in pips. For example, if the EUR/USD has a Bid price of 1.3400 and Ask price of 1.3403, then the spread is the difference between the two which, in this example, is 3 pips.

5. Fixed vs. Variable (floating) Spread

Forex brokers usually offer two types of spreads, fixed or variable (floating). Fixed spreads are predetermined and remain constant during all market conditions. Variable spreads, on the other hand, are always floating and usually decrease during low market liquidity and increase during high market liquidity. With LiteForex the fixed spreads start from 3 pips, while the floating spreads start from 0.1 pips.

6. Leverage (or Margin)

Leverage allows you to trade with money much higher than the funds you have in your trading account. This means that you can open larger positions. For example, if you are using 1:100 leverage, you can open a position of $100,000 with only $1,000 in your account. Using leverage helps you make larger profits; however, it also magnifies your losses if the market goes against you.

7. Lot size

Lot size is the unit size of a trade. There are three lot sizes that can be used in Forex: a standard lot which is equal to 100,000 units of the base currency, a mini lot which is 10,000 units, and a micro lot which is 1,000 units.

8. Stop loss

Stop loss is a type of order which every trader should use on their open positions. A stop loss restricts your losses and closes your position at a price level you’ve specified before. This order type helps minimize your losses, which is very important for your long term success. You should also test and use trailing stop orders, which help maximize your profits if the market goes in your direction.

9. Long vs. Short Position

There are two types of trades that can be made. With a Long Position a trader attempts to make profit from an increase in price, by buying low and selling high. With a Short Position a trader attempts to profit from a decrease in price, by selling high and buying low. The trader chooses for how long he wants to keep the position, for example a few hours, days or months.

10. Swap or Rollover

Swaps occur because of the difference in the interest rate between the two currencies which are being traded. If you have bought (placed a long position) the currency which has the higher interest rate, you will earn interest. On the other hand, if you have sold (placed a short position) the currency with the higher interest rate, then you will pay interest. Swaps are applied only to positions which are kept open for more than one working day. Depending on the swap calculation, funds will be added or retained from your trading account. If you wish to read a complete list of all terms used in Forex, you can visit the LiteForex glossary. If you feel confident about your trading skills and knowledge, open a live account or a demo account and start trading today.

P.S. Did you like my article? Share it in social networks: it will be the best “thank you” :)

Ask me questions and comment below. I’ll be glad to answer your questions and give necessary explanations.

Useful links:

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  • Telegram channel with high-quality analytics, Forex reviews, training articles, and other useful things for traders https://t.me/liteforex

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

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5 Tips for forex beginners.

1. If you don�t have much capital, forex is the ideal form of investment.
2. If you have too little capital, you�d better not trade at all.
3. Love the market (one forex tip that says it all)
4. Very important forex tip: trading at high level requires a good knowledge of the market.
Not even the best trader in the market gains all the time.
5. Forex market is extremely volatile. For this reason, timing is essential: knowing when to start, stop or pause is a crucial to gain money with forex.

The Following 100 Users Say Thank You to Narr For This Useful Post:

1: proper knowledge for visit **** **** learning site
2 for trading experience visit demo account free of cost experience
3 for capital making posting in form
4 for news visit forex factory
5 and last not tips just advice that please don’t trade without experience and short capital

The Following 4 Users Say Thank You to ali1011 For This Useful Post:

good post brother. These all things are good to keep in mind before entering in the Forex market. Specially the point number 5 is worth thinking. Many newbies don’t know on which point to open a trade and on which point it should be closed. So always try to understand these points.

The Following 2 Users Say Thank You to atif58 For This Useful Post:

I believe that the trader can be disciplined in trading rule, it can generate a consistent profit, but it is very difficult to be disciplined, requiring a lot of time to undergo the process of learning

I appreciate yours points very much. but I m unable to understand yours 5th point. as when to start, stop, or pause. ye sab kesa pta chalta ha. k kab trade ki jayay or kab ni. kab konsa pair sahi hai. aur kb ks ka time ha. as time management kesay ki jati ha? kiya ap mja bta sktay hain. waiting for yours reply.

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