As a beginner forex trader, you can easily get lost, confused or overwhelmed with all the information that bombards with Internet commerce. The best you can do is just to take it slow, learn how to properly deal with an experienced professional and not rushed.
The next 10 forex trading tips are things I wish someone had told me when I began to operate. So with that in mind, I give you ten of the most important shopping tips for first (or any) the grocery store before you start to absorb market.
10. Learn the basics first
Many novice traders try to jump into the market with no real background knowledge in markets acting. To build a solid business foundation, you need to take the time to learn about how the forex market works (or any market you trade), and really get a solid understanding of all the jargon, etc. before you really dive in and start learning a trading strategy. You can get this knowledge by taking my free beginners introductory course forex trading.
9. Learn a business strategy, stick to it.
One of the biggest mistakes I see beginning traders and again, trading methods change too often. If you use a logical method trading common sense as my method of price action, you need to learn and master it before you do anything else. If you jump from one method to the other, because you think you will find any trading strategy “Holy Grail”, you are just operating in the false hope and illogical, and lose money.
In addition, do not change the methods, just because he had lost a few shops. Any method will have a certain amount of losers on a sample of transactions, this is normal and part of the negotiations. You can not let it affect too lost trades; You really need discipline glacial to excel in trade.
8. Do not overwhelm
It’s easy to feel overwhelmed with information and business strategies as a beginning trader who happens to all of us in the beginning. The best way to reduce it or avoid it altogether, is to find a mentor, someone to learn from, and piggyback off of its success. I presented all my trading strategies for you to learn in my conduct trade price and in my opinion, the best thing to do is to block everything else, forget everything you’ve learned and start with my teaching a clean slate and focus only on it until you really know what you are doing.
7. Do not panic when a trade moves against you
This is great because most traders, especially beginners, are afraid or overreact at the first sign of a trade moves against them. This is much more of a problem to trade in live trade show, due to differences in emotions between them, but is a problem and must be addressed.
A change to the NORMAL. I have eaten operations within 5 pips from my stop loss and continue to be big winners after that. If I was scared and closed before it hit my stop loss, not only lost money, but I would have lost a lot of advantages too. This is the main reason why you should let your trades play and not close early because they have moved against you.
It’s really very simple: set your stop loss in a logical / insurance (more on this later) Instead, manage your position size for your dollar risk is at a level that is well below cost, and let the trade go. Do not micro-manage your trades, just let the market do the job and you want to play a round of golf, go to the gym, or go to sleep … so see action the next day. Do nothing with their live trading is usually the best (and most lucrative) movement, which means to set and forget.
6. Focus on price action.
There was a time once, believe it or not, when people act without computers. Hard to believe, I know, but true. How do you think they did it? It was with RSI, MACD is, Stochastics or some automated trading software was of course … with the price action. They are used to read the tape in trade, or would price movements located on large boards to read and interpret. They interpret price changes or price action. This method is the only method of “natural” trade and has existed since 1700, when Japanese rice traders invented candlestick charts to predict changes in the price of rice.
Works, not complicate too. My only take on the trading price has worked well for me, and if you follow what I say in my course and the use of extreme discipline and logical thinking, along with patience, it can work for you too! No need to mess up their cards and mind with a lot of messy and complicated indicators or news events. I do not have to do it and because it’s a waste of time, mental energy and ultimately your money.
5. Be realistic
Perhaps most difficult, but most importantly for a new trader to do is be realistic. Sorry, but I have to tell you that you can not quit your job and go to work from a beach with an account of $ 2,000. If a website or someone tells you something like this, you have to run them because they are crooks and have no clue what they are talking about.
Can you make a boat load of money trading the markets? Sure, of course. Perhaps no other profession in the world has as much upside potential as trade. But it comes at a steep price; It is not easy, at least not easy mentally.
You can find all kinds of psychological “traps” and self-sabotaging mistakes along the way in your trading. It is informed and realistic is it that will keep you on the road to commercial success. If you start to get dollar signs in their eyes that will over-leverage (risk), and your trading account and lose money rather than make a lot of money. You do not want to.
4. Do not shop much.
Slow and steady wins the trading career, it’s a cliche, I know, but it’s so true. High frequency trading opens a world of trade emotional mistakes that will ruin your trading account and self-esteem.
I have written many articles on this subject, and I know that for many of you this unfortunately will not register in your mind before it’s too late, but do not have to act much to make a lot of money. more clearly why understanding, check out this article on low frequency vs high frequency trading.
3. Focus on the daily chart
We must learn to interpret and negotiate the price action on the daily time frame graphics before you do anything else. I will not go into this too deeply here because I have several other elements in it that you can check out here:
The best time frames for trade
Daily time chart graph; the Holy Grail ‘
How to negotiate daily chart improve business results
2. Do not put too tight stop loss
This is huge, and takes most traders lost a little time and money to find out; You have to place your stop-loss to a “safe” distance from your entry price. If you place them too close, you will get stopped out for a loss, before the market really had a chance to move in your favor. In other words, your idea of trading have been correct, but because of stop loss is placed too close, he stopped before the movement anticipate occurred.
Here are a few items to help with the placement of stop loss:
Placing stop loss
Using ATR stopping position of the loss
1. Do not just jump uneducated
It is always amazing to me how many people want to risk their money in the market without having obtained any education or vocational training. So after losing a lot of money, they decide to get an education. This is backwards, it’s like trying to fly a plane without going to flight school, then crash and almost died, after all you decide to go to flight school … Many traders do exactly the same with their commercial accounts, Do not be one of them!