Tips & Trik for Forex Trading Just Started

As a beginner, you have taken the first step towards learning the basics of forex trading.

But it gets harder from here. Just like learning to walk, you have to take small steps, and in between, you will fall, but you will get back up and move on.

If you are trying to trade forex for the first time, know that most novice traders are best served by keeping things simple.

Here are some trading tips every trader should keep in mind before trading currencies.

1. Educate Yourself

We cannot stress enough the importance of educating ourselves and learning as much as we can about the forex market.

Find quality forex education resources like our The School of Pipsology.

Before risking real money, be sure to study different currency pairs and understand what makes their price go up and down.

2. Make a Plan and Stick to the Plan

You are the most rational before trading and the most irrational during your trading.

This is why you should always have a plan before opening a position.

headed in the right direction. You will have a framework for measuring your trading performance, which you can monitor continuously.

This allows you to trade with less emotion and stress.

3. Practice Forex Trading

In real life, you probably have plans to drive from Point A to Point B if you don’t know how to drive the car that will get you there, then your plans are going to waste.

The same goes for your trading plan. You have to “test drive” your trading plan first until you are good at executing the plan.

It is important to learn how to use the features of a trading platform before you start trading on it.

Fortunately, traders can test each platform using a demo account, which means there is no risk to real money.

The demo account allows you to test your trading plan in real market conditions, without risking real money.

4. Stay Slow and Steady

One of the keys to trading is consistency.

All traders have lost money, but if you maintain a positive edge you have a better chance of remaining profitable.
Educating yourself and creating a trading plan is great, but the real test is sticking to the plan through rigorous discipline.

A trading plan is only effective if it is followed. You must comply.

5. Know Your Limits

As a new trader, you must know your limits.

First of all, do you have enough money to trade? Forex will not make you rich quickly! So make sure that the money you are willing to risk (called “risk capital”) is money you can actually afford to lose.

If you need that money to pay your bills then you should think twice about forex trading.

If you have the money, then you need to know how much you are willing to risk on each trade, stick with the leverage ratio within that risk limit, and never open a position size so large that it could destroy your account.

Many traders fail because they do not understand trading on margin and ignore the effects of leverage. This shouldn’t be you.

6. Take Care of Your Emotions

In order to be consistently profitable, you have to stay rational and not get emotionally attached.

Many novice traders experience an emotional rollercoaster, feeling on top of the world after a win, but bottomed out after a loss.
In contrast, most experienced traders remain calm and relaxed even after a series of losses. They don’t let the natural ups and downs of trading affect them emotionally.

Don’t fall victim to the most dangerous emotions in forex trading.

Emotional stability, balanced with proper risk management, is the name of the game.

7. Keep an Open Mind

While having discipline is a very important trait for a trader, you should also be careful that if you get too caught up in your ways, you will end up imposing our ideas of what the market should do, instead of reacting to what is happening. actually happened.

Asking questions allows you to see different perspectives of the market that you may not have realized at first.
This practice will get you thinking about other potential scenarios that may arise and allow you to become a better “listener” of the market, not a “trickster” of your own thoughts and views which, in reality, may not mean nothing to the market.

Leave a Reply

Your email address will not be published. Required fields are marked *