Trading Tips for Forex Beginners by Forex Camping (2024)

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by Forex Camping Online forex training and tutorials.

Your success at Forex market depends solely on your experience and emotional stability, but we hope that the following tips will help you make your way to the professionalism and profitability in Forex trading.

1. Learn the basics
First of all, you must acquire the basic knowledge about technical analysis and financial markets to understand what kind of laws rule the Forex market and how to earn from price fluctuations. A trader must be able to analyze and predict the market and be psychologically prepared for trading.
2. Learn on demo accounts
It's pointless to try mastering the trading skills by working directly with Real accounts. The price for learning might be too high. For the purpose of learning there were created the Demo accounts. It might take several month of trading on Demo until you feel yourself confident to start the real game.
3. Choose a Forex broker carefully.
Your success in Forex greatly depends on the Broker you chose. The fake broker may invalidate all the profits, gained through hard work. Thus carefully investigate the profile of the broker, evaluate his services, check all the legal issues and only after that make the final decision. Here are some important tips to help you choose the right broker: 5 Things To Keep In Mind While Choosing A Forex Broker
4. Discover the trading Instruments and tools
Thoroughly examine the trading platform, provided by the broker and all its technical capabilities. In the future, it will save you a lot of time and money.
5. Know Your Rights and Responsibilities
Carefully read the documents, regulating the relationship between you and your broker and find out all the questions you have. Pay attention to the smallest details of the contract and make sure you really accept all the rules and regulations, otherwise you might have a problem in trading later on.
6. Keep calm
Do not step over the level of psychological comfort - reduce the trading volumes if you lose the confidence during trading.
7. Learn to accept defeat
Some losses are integral part of Forex trading, so chill and take this fact for granted. Analysis your trading results, make conclusions and move on. Try to avoid losses the best way you can, but in case they happen, take it philosophically.
8. Trade within the certain limits
Do not attempt to open too many trades - you might not be able to keep track of all of them. For a beginner it's always better to trade with less volumes and execute less, but more profitable transactions.
9. Concentrate on saving funds rather than increasing them
Limit your risks, even if it leads to restriction of the profit. Your primary task right now is to learn how not to lose your equity.
10. Consider the possible risks
You should have a cash reserve for use in unpredictable situations. Analysts advise to invest in trading no more than 50% of the total equity. At the same time, you should not use more than 10% of the available funds in one transaction. Decide beforehand how much of these funds you are ready to lose in case of failure. Set the value of acceptable risk, which is preferably not more than 5%.
11. Do not forget to use Stop Loss orders
Improper asset management is the main reason of failure in Forex. Stop Loss orders are aimed to limit a trader's loss, as the trade will be closed automatically at a certain per-determined value in case the price goes against you, thus remember to use Stop Losses and learn to find their optimal location.
12. Do not fall under the influence of others
Work out your own trading strategy and test it persistently. Don't be in a hurry to change it, following the opinion of others. There is no universal trading system which can bring only profits and you are the only one who is responsible for your trading results. If you have already made your decisions, don't be carried out by reviews of other people.
13. Don't trade against the market

Remember that the Trend is your Friend. Some traders enter the market when the trend is moving in the opposite direction, hoping that later they may profit from that as the price will reverse. However, for the newbies this strategy is extremely dangerous!

See Also
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14. Keep a Trading Journal (Diary)
Trading Diary helps to develop analytical skills. Write down why you made this or that trading decision, what impact it had and what conclusions you made out of that.

We hope that these advices will help you make your trading story more successful and positive. Keep reading more interesting articles at http://www.forexcamping.com

Article Reference: - http://goarticles.com/article/Trading-Tips-for-Forex-Beginners/8904130/

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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