Tips for a newbie on forex from a beginner with a 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 a certain opinion regarding trading, and I want to share my little experience with some tips for a beginner.
- 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 possibility of withdrawing 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.
- 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.
- If your trade was in a drawdown for a long time, and you 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.
- Before the release of important news and speeches, I advise you to close the profit trade or at least transfer it to breakeven.
- 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.
- Do not look for the Grail, better create your own. The simpler the better!
- 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.
- A separate topic is to 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.
- Beginners very often overstate a lot, opening several transactions in one direction and an overestimated volume. I advise you to quickly close them when you reach the total profit for 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.
- 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.
- Do not have high hopes for a quick and large income from Forex trading.
- 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 on the forum.