This is an exciting time to get into Forex Trading for beginners! It seems you're a beginner and looking for a better trading guide and way to not to lose money again on forex trading and a guide to trade again in your favorite MT4/MT5 trading platform or whatever you use. If I'm right about this and you are interested to learn about forex basics, then you are really a smart guy who cares about what do things. Anyways, you're no more talking let's start.
You will wonder about the Forex market if you do not know that it's a way bigger than all the stock market all over the world. People trades here, get bucks from it a few guys - do trade several times periodically and they have their financial situation much better and better with it.
The Thing in Real in Beginners Life
But, the thing is 95% of newbies can't earn back from their first few investment/deposit. It's not wondering for me if you got shocked by reading this. I can assure you, probably you've already lost a few bucks and started to look for the way, the right way to trade here.
Well, here we go - 5 basics of Forex trading for beginners. I will tell you what does matter for noobs like you. But if you're really seeking to trade in forex and agreed to risk your money then keep reading with me.
1) Find Yourself Smart
Smart guys hate being greedy. If you found yourself greedy now, please be cautious!! It never that much easy! If it so then why your acquaintance isn't known/trade here? So don't think it's too easy and you can grab a big amount of cash from it. A good number of risk here, and if you don't think about it, you are gonna lose your capital.
Count your balance
You will earn 20% in maximum - when you're a regular trader. The average percentage is 10% of a single trade. I do 8 – 12% depending on the financial market. I know a few guys who made 200% from a few trades. Do you know? Then what happens - lost 300% on a single big bump. Unfortunately, they were greedy, and those guys don't like forex now. Trading is so far!
Be Patient and Keep Calm Yourself While Trade
You've to make yourself calm and remove the excitement first. A far I can say about you now, you're excited to hear from me. There are quicker ways to grab cash from forex. Don't hate me, there are no ways for it. If someone told something like that, better get away from him.
Well, it doesn't mean we need a large amount of time to learn it. If you're a quick learner it won't take too much time. But first, you should find yourself gentle about it. Get yourself ready with at least three things -;
- I'm not frustrated
- I confirm the next move
- I know well about both the currency market
2) Learn, Learn and Learn
Yes, learning is a must know things. You will get a few strategies from my next posts about learning the industry facts. You must, need to know what makes candle moves. How it goes thaAAA-t much high and too---------o much down. There are many things to impact on Meta Trader's candlesticks/bars are works for it. As you already can guess, economy/financial factors do things matters.
Don't Complicate and Be Choosy About Learning
Well, I am not letting you read economics in university now. But you gotta know about a country economy. In my word- you must take your eye on US & EU economy. Because maximum business/economical things processed by those countries. And China is considerable too. In a chain - you gotta know about China, Japan, Russia, Great Britain, and European countries conditions. Notice here – I didn't mean to the economy. You gotta look to those big country's political stability, movements and of course stock market trends. Choose to be aware you're trading pair's respective countries economy and their currency/bank/economic policy and their behavior about it.
You need to keep your eye updated about financial conditions changing the decision made by governments or had an agreement between other big countries.
3) The Secret of Learning
Do you know why the currency rate's changes and drop suddenly or flew in up? The exact cause is mysterious but the ultimate truth is bank autocracy. Yeah, a bank can decide which rate is they are trading in for the moment. Well, the secret is not revealed yet, let's explain something before getting onto it.
Common vs Not Being Common
While you put a trade in a trading application, you are choosing 1 side between 2. Most of the people do it too. Well, when most of the people on the same side, the bank decides to make their profit. Guess then? They change it to against majority trending so those people can lose their money and bank, able to grab it. So when you're in a common side in trading you will lose money. No matter you buy or sell, if you're in common side - you're gonna lose it. When you lose money, you need to know, how to recover your lost money from forex trading. That's the factor in forex trading which matter most.
4) Do your Trade Wisely
Demo Trading is Cool
You might want some demo trading, it will give you trading time experience. First few weeks - make experiments one after another and try to learn something with a different type of experiments. I will say from possible every corner of the room and make your own strategy. If you succeed on demo trading then don't experiment too much buddy, if you're doing it that too much then probably you're wasting your time.
Take a Note on What Happened on Your Last Trade
Well, I didn't mean it would be your final strategy, but it could be a step on your journey to the ocean of forex trading. After finishing up a trade or a few trades - don't forget to analyze the trade and you should take good note on it. On the note – take care of your points in market moves. What was your thinking and what you did and of course what was the result?
Create Efficient Chart
Usually, a Trading Software initially provides options to customize and a better understanding of the market. Also a good number of tools and plugins available to explain and create own strategy by yourself. Choose the efficient one for you and read their manual, documentation to use properly all available functionality.
In other sense - different kind of colors, shapes, elements will help our brain a fast catching capability so it might help while we're in trading.
Stop Loss and Take Profit
As I already told, getting greedy is too bad. Now I'll make another caution about trading. You should use Stop Loss while putting a new trade. If you use SL and it causes your equity losing don't worry - the theory just didn't work for the time. Later you can win if you have enough experience.
Don't Trade Real If you're a Beginner
Yeah, don't trade real without a good trading experience as well as not knowing market facts. In other words Forex Fundamental Analysis - without having skill with the analysis you shouldn't trade even a demo trading.
5) Keep Continue - DON'T Stop
Don't Be a Loser
Oh, ho! Your theory didn't work? Did it happen again? Oh! That's really a bad thing. In this case, what you're gonna do? I'll suggest, don't stop on a fail. The prover “ failure is the pillar of success” isn't that worthless. It worth's of course - if you know when it does. Do you know what the secret is? Take a break.
Yeah, it will make yourself calm and when a new start, your memory will be cool. It will work according to the order.
Step by Step
Trading requires you to begin from basics. Did you do it yet? If not then don't waste your time in some advance things. Finish your basic knowing then start it again. Make a series of order before putting your trades.
Experiment regularly with your plan and don't forget about your excitements. If you do it regularly you'll be a skilled trader, as you know - practice makes one what.
You may join with some good forex forums to discuss your problem.
As mentioned three things in a trade – if your idea didn't work just write the fail note and try to explain why?
Well, the devil is banks and you should make a different practice in that case.
Learn to Take Risks
Of course, you won't trade demos for the whole life. After a good successful experiment – you might want trade real. If you decide so – then you're taking a risk. You should be aware that you're losing money, and the loss risk is for gaining. Isn't? Without risk, there is no business. So, make yourself ready to take a risk.
On Final Thought
Don't let the enemy give you up. Sometimes - it could show you that odds are against you if you're on the phase then take a break but not for a long time. Get back with a cool head and start to investigate why that happens, as already said - take notes again and add on your strategy or create a new one. Just don't give it up, this is very much important.
All I asked before a trade is knowledge. At least basic knowledge is mandatory for trading. So, those are my 5 Must Do Know things special guide for Forex beginners. Hope it helped you at least a little bit. If it helps then why not you share it with others and let them know it? Share using bellow share tools so someone got some good help! Enjoy!!