TEN TRADING TIPS FOR BEGINNERS
So you were an absolute rookie, and if you're almost arrived at the end of the forex course for beginners. You have learned how the forex market works, the most important terms to know, know how the basic technical analysis and fundamental analysis work and have also gained more understanding of your own psychology. Perhaps you've even tried a few trades to your new knowledge into practice and, admit it, you start the game by getting all nice.
But actually it is really fun. Well, it was fun, but it gets even more fun. All new knowledge you gain from now on should not ignore the basics of stamping it occurred, but to further develop your strategies and sharpening. Forex was performed as a language, you have the rows and dry grammar behind and learn from now on, flirting with cute girls (or boys), the singing of songs sounding nice and understanding literature.
50 euro free markets
Soon, we will discuss the factors that the forex market determine what you need to know better; on how technical and fundamental analysis exactly work; how you can discover what trading style best suits you, and much more new and exciting things. But before you really jump into the deep and very self is performed, we want some final tips. These forex trading tips will help you avoid the major mistakes that many beginners make. (Although you probably-just as we do in the beginning anyway, because it is simply part of the learning process.)
Always set a STOP LOSS IN
Here you really do have zero knowledge while you are by definition against potential financial dramas. Legion are the stories of small and large traders who were doing some shopping in whom the power went out or whose computer crashed, and later noticed that their entire capital had evaporated in the one trade that went the wrong way. (In forex broker toro can not, because you never exceed the by you specifically for a trade amount reserved can lose, unless you specified otherwise set. But you can still that whole amount lost.) So no excuses just ALWAYS set.
ALWAYS DO A TAKE PROFIT IN
This is partly the same reason that you should set a stop loss. Maybe you should get away, fall from your Internet connection, etc. But it also forces you to think about what you want to accomplish with your trade. Where do you think it goes with the price and when the end is reached? The predetermination of an entry and exit point is half of a successful trade. You do not get nervous because walking back and forth across the room, dubbend on when to get off, while the position already taken. You do this in advance.
This does not mean you never deviate more from you. If a market development advocates to step out, even if you take profit (or stop loss) is not reached, then that is possible. But do not make a habit, you have not for nothing in advance for a specific price target chosen.
It is best to advance for a certain ratio to choose between your s / l and your t / p. For example, you position to close out at 25 pips and 75 pips profit loss, or a ratio of three to one. That way you trade in only 25% of the cases to be successful in the long term break even. (If you lose 25 pips after three and one times 75 pips win, you're back to 0.)
KEEP ON NOT buy in a losing position
This is one of the biggest pitfalls in Forex trading. You have taken a position, your stop loss neatly completed and then the trade is not on your side. You s / l and you enter into force fed as a plug. Recovering do you want money, so you re-sale at a better price because you have indeed just right. Next, the course is fun for you move in the negative direction.
Do not do this. Just accept the loss, stop here and analyze it possibly why it is not as gone as you hoped. Remember that no trader is only winning trades. Everyone knows losing trades, it's about more wins with the winning trades and losing with the losing less (hence the ratio between the s / l and t / p). It may be worth at a lower rate again in a position to resign. But see this as an isolated decision and do not care about your previous losses incurred.
DO NOT be cocky
The smaller the greater the knowledge of the mouth. So it often. But you're not on the forex trading to prove who has the biggest, you do it for the money. That it is also fun and exciting, is nice, but ultimately it must be some cause. It is all too easy for a few lucky hits on the forex market your own knowledge and talent to overestimate sudden and too large amounts to sell.
Realize that on a scale of 1 to 10 where 1 is a monkey that randomly switches down to forex positions to open and 10 Bruce Kovner, for decades one of the most successful forex traders world-you now maybe 3 or 4 is. That is probably more than the average private forex trader, but there are also many losing traders. Please modest amounts for positions, but remember that you're working with a learning experience and a long way to go before you can trade with millions of law.
Do not create false expectations
It's okay if you only lose $ 100 because once you've done something stupid, just as you have to go around looking for a villa in Wassenaar once you've earned $ 200. Take the time to get well and stay realistic look at your progress, without become obsessed with how it was precisely the last week or month did.
It may be that you will eventually make more money with Forex trading than with your normal job. But maybe that gives you not because you have the time, interest or lacks the discipline. Then you do not already resigned because this Forex course for beginners is completed. It is better to simply see how far you come, gradually get better and more gains than to hard to handle and financial targets over there trying to trade. You simply can not always control what happens in the future.
NEVER TRADE WITH MONEY YOU CAN NOT MISS
NEVER TRADE WITH MONEY YOU CAN NOT MISS! The best thing about forex is that all trade is the least risky. You can never lose more than the money you invested by you, and if you stop loss can be well used (at least at eToro) never even lose more than the number of pips that you have specified in advance. It is therefore no need for money to bet that you can not miss.
Book an amount just for your forex trading and take it for granted that you can lose that amount in principle-especially during your school is smart. If something is not necessary in forex then it sleepless nights. Put yourself not in that position.
TRADE WITHOUT A PLAN
A headless chicken is usually eaten. So think before you open a position. Do not step in because you have some vague suspicion or because a distant knowledge at a party let slip that the dollar has really put together to go pay. Base your trades on the other hand, considered fundamental and technical analysis. Discuss your set-ups on the forex forum and ask what others think.
Try before you open a position as well as possible entry and exit point to be determined. So when can you best get in and at what point do you want to leave the market? Translate these points in a stop loss and take win and stick to it. In the beginning you may find that your plan does not always work and that sometimes the market does something unexpected. But just so you develop a better feel for the trading and you are getting better at.
OPEN POSITION IF YOU DO NOT HESITATE
The Americans have here a beautiful expression: "When in doubt, stay out." You have obviously no coward, but if your analysis have made and you still doubted strongly about what the price is going to do, find another currency pair or go for a coffee. You take a position for a reason and if you are not really convince you that reason, he is probably not so good.
DO NOT STEP OUT DUE TO A RATE WIPWAPPENDE
Another great thing about the ocean: "Monitoring extended periods or whipsawing is like watching paint dry." Is often the case that a course some back and forth wipwapt before he chooses a definite direction. The market builds energy as it were, before there comes a jump. Watching such wipwappende rate is not only boring, but you can also head full of (unjustified) bring doubts. I had a really good estimate? Is there something suddenly changed? Should I close down my position anyway?
The wipwappen of exchange rates is the result of a large group of uncertain traders who think exactly the same and therefore irrational buying and selling. Make sure you're not one of them. If your analysis was good you will naturally see if you were right. Small fluctuations in the short term there's nothing to it. If you have a stop loss and take profit set-what-you obviously have done after you open a position close to the eToro software and do something else. Your position is automatically closed if your goal is reached and you continue not to intervene to get more for profit than to do so. Patience is a virtue ...
Concentrate AT THE OPENING OF A POSITION
This has every trader ever done wrong: this button, button there and ... Oops! Pressed the wrong button. Accidentally long gone wild short while; 400x instead of 200x leverage, rather than Australian Dollars Canadian bought etc. Of all Forex trading tips for beginners, this is the simplest (even the monkey can learn): concentrate on the Once you actually take the position. Check here if you are all well fields have set before you click 'Buy' button.
If you open a wrong position means that at best you pay the spread twice, namely when the erroneous position closes and immediately opens the correct position. This will cost you a few pips. But if you do not have that you have made a mistake, the consequences can be enormous. Imagine you accidentally have gone short instead of long and there is only later, after you've lost about 200 pips. In short, concentration is essential.
And thus you come to the end of the forex course for beginners. These eight lessons formed the basis of forex trading. In the forex articles below we are going to deepen in the 'wonderful world' of forex.
If you want to test knowledge at this time, then we suggest you to make the Forex Info Quiz. That gives you a good insight if you are ready for your self on the forex market to enter.
And we hear on our forex forum how it entered your fare! If you want to learn fast, it is also certainly advisable to open a forex blog on the forum so you can get feedback from other members forex info.
related posts
- donchian
- fast3
- forex best indicator
- indikator forex
- scalping indicator
