10 Essential Tips For Novice Traders - Online Forex Trading

Discussion in 'Forex Education' started by kuazlan, Jun 6, 2011.

  1. kuazlan

    kuazlan Trader

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    If you are new to online FOREX trading you will realize that 95% of traders lose and lose quickly.

    To win at currency trading you need the right FOREX strategy - incorporate the following 10 tips and you will get a head start in your quest for consistent FX profits

    1. Don't believe the hype

    You will read a lot of information on how easy FOREX Trading is and how you can buy an e-book for $100 and become rich - this is not the reality. While there is some good advice out their - you can get all the information you need free on the net.

    If you want to read about the top traders of all time and get advice from traders who have walked the walk -rather than just talk the talk, go to Amazon and pick up some books from the top traders of all time.

    2. Don't day trade

    The biggest myth of FOREX trading is you can make money FOREX day trading.

    You can't!

    Many novice traders fall for this myth and lose quickly.

    All short term volatility is random and there is no way of predicting where prices may go, so you may as well flip a coin.

    If you want proof that FOREX day trading systems don't work ask a vendor for a track record of real time profits over the long term and you won't get one - PERIOD.

    3. Work smart not hard

    You don't need to work hard in FOREX Trading, you need to work smart. This means focusing on the RIGHT FOREX education and learning FOREX tools that work. You can easily learn to trade FOREX markets in a couple of weeks. You just need to focus on the right information.

    You don't get rewarded in FOREX trading for working hard, you get rewarded for being right and that means working smart.

    4. Risk = Reward

    If you don't like risk forget currency trading and do something else.

    Many traders simply want to avoid risk as much as possible, putting stops to close, or snatching profits. If that's you - you will NEVER achieve currency trading success.

    You need to cheerfully accept risk and loses to succeed in online FOREX Trading.

    5. Do It on your own

    Only you can give your self success.

    You need to be confident in your ability to succeed and if you are, you will have the discipline to apply your method for long term gains.

    If you follow someone else you will not have the right mindset to succeed. You will lack discipline and will throw in the towel as soon as a string of losses occur. Do it yourself and your chances of success are enhanced.

    6. Get a simple method

    Simple methods work better than complicated ones, as they are more robust with fewer elements to break in the face of ever changing market conditions.

    There is no correlation between how complicated a system is and how much money it will make.

    If you are starting out in currency trading, use support and resistance, a breakout methodology and some confirming indicators and that's it.

    The above way of trading is perfect and will help you get the big profits from the big moves.

    7. Trade Breakouts

    A timeless way to trade FOREX markets.

    It works and will continue to work, simply read out other articles for more info on this simple but powerful methodology.

    8. Be patient

    You don't get rewarded for how often you trade online FOREX - You get rewarded for spotting and acting on the best trades and these don't come around every day.

    Be patient and only trade FOREX signals from your system - don't be tempted to trade for the sake of trading.

    9. Be realistic

    You can make a lot of money in FOREX Trading so what's realistic? The top traders compound 50 - 100% per annum so this is a good number to aim for.

    These gains will compound quickly and build real wealth longer term.

    Be realistic and don't try to get rich over night

    10. Know your edge

    If you understand the other 9 points, you will understand that you need an edge to make money longer term in online FOREX markets. If after you have devised your FOREX trading strategy you don't know what your edge is - you don't have one!

    You need to know what your edge is over the majority of losing traders to win.

    Final words

    If you incorporate the above 10 tips into your online FOREX Trading plan, you will be well on your way to making money in the worlds most exciting investment market.

    Welcome to the world of FOREX trading!

    [link removed]
     
  2. The stuff this person posted here isn't accurate. Sorry but you should check your facts before posting information that new traders will most likely read.
     
  3. gigabrainy

    gigabrainy Trader

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    Absolutely agree

    Absolutely agree with you.
    The success is in your plan. Who wants to be successful must have a (good) plan.

    Regards.
     
  4. Alchemist

    Alchemist Active Trader

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    I think it would be a good idea to have a sticky thread like this, but with with accurate information. The first post would be the tips, and it could be edited/added to based on member feedback.
     
  5. fx_eanderson

    fx_eanderson Trader

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    So much blabla about 90% of the traders lose their money...here 95% lose their money. Dear topic creator, are you aware that the forex market is NOT a centralized market, thus all the number you have there are incorrect? You are correct though that many people go with the hype of becoming rich overnight. There must be losers to be winners, that's how forex goes.

    James Jonathan
    Forex Trading|Forex Blog
     
    Last edited: Sep 23, 2012
  6. ameliya

    ameliya Trader

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    Hey hi...i just want to add some more tips for novice traders. which i mentioned below.

    • Despite challenges, Forex trading is very exiting.
    • If you're new to trading, don't rush in to trade with real money.
    • Don't believe online marketers who try to sell you a system or indicator for $60-100 USD.
    • Keep a cool head, get inspired about Forex trading
    • Make profits as a result of your own knowledge and experience
     
  7. George A

    George A Trader

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    Kuazlan ,, Thank you for your caring input for alot of the new traders , and i agree with alot of what you have said , as there is a reality to alot of it .
    I would like to highlight 1 point , and it is about day trading success .
    Some pairs have a great daily average range such as euro/yen 136 pips approx.
    Also one needs to take into count that generally we get 2 to 3 intraday swings in a 24 hour session with a nice reversal many of the times , and often we see range of above 50 pips ( 15 mnt charts ).
    50 pips is NOT little amount of pips in any one's books , and should NOT be taken lightly in my opinion , and that is ONLY 1 range . and also the fact that EVERY range and retracement IS mathematically calculated and IT IS based of FIBS retracement and/or extension , which means IF one knows there fibs well enough , and most importantly know how to apply them ,, AND have done enough deep studies about market action and how would unveil through the daily range , i can GUARANTEE you , one can really clean up using a compounding system , and once the FIRST trade is in place and runs into profit, then every other trade for the day CAN be done with ZERO loss chance , now some will knock this , and this will only happen due to human nature when one can NOT , OR do NOT know HOW to do something , and i have NO problem with that.
    I see this working day after day and swing after swing during any 24 hour day , and on every pair i look at . and for the last maybe 12 months , i ONLY put in a minimum of 8 hours a day watching , studying , and analyzing market action , and YES you can say i am EXTREMELY passionate about trading .
    I feel maybe day trading did NOT work for you , BUT that does NOT mean it will NOT work for anyone else .
    Everything i said above is with all due respect to you Kuazlan , as i was NOT in anyway knocking what u said OR how u trade !!!!!!
    Cheers,
    George
     
  8. George A

    George A Trader

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    I have prepared a chart for the benefit of all that want to see further what i am talking about in my previous post ,, BUT sadly after 20 mnts or so typing a fully detailed post ,,i lost it in the process trying to see how i can attach a chart that has full details of Wednesday 2/ 10 euro / yen 15 mnts and how the 2 lows came about and they stopped within a pip of FIB levels , as well as they were approx 7 pips from each other , BUT as i have seen it many times , they were NOT a coincident , ( and ended up failing with my effort to post it , and still do NOT know how to attach a chart ,,, after all what do u expect from a camel rider ??? hahahahahaha)
    The first low was the low of the 2nd swing , with my target to hold at 131.493 , with actual low at 131.490 ( although i really thought we would get a rally from 131.611 ,BUT negative was heavy , hence went to the full house run so to speak , hahaha )while the 493 WAS in sight already as it is a strong level for a reversal ,, BUT i thought we may do it on the final run for the 3rd swing .
    The 2nd low , 7 pips lower , was the 3rd swing of the day (maybe an elliot wave ??????? ), and as it happened after going to bed ( as i live in Sydney) , was a very high probability for the market to come down to it , ALTHOUGH the first low WAS a MAJOR level low for the days range ( from experience , and i suppose it proved to be so ) , came in at 131.423 , with a target of 131.426 .( A 200% repeat of the 1st major range of the day on the 15 mnt chart )
    All of the above targets ARE FIB levels of extensions .
    this is nothing unusual to see an extreme level of accuracy as it is what i expect and see, and IS happening ALL the time .
    I will sum my findings in 1 sentence ,,,
    THE MARKET DOES NOT DO A RANDOM SUNDAY AFTERNOON PARK STROLL .
    Cheers all ,
    George
     
  9. melaniehamilton

    melaniehamilton Trader

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    When deciding to invest in the Forex market, there are many things that a beginner in this field has to know. The first step is undoubtedly open a test account on the online brokerage service that inspires more confidence, and obviously, that offers the best terms.
     
  10. gerski

    gerski Trader

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    I like your post niceone.To add up one must really educate himself well, even professional traders continue to educate themselves.
     
  11. goodness

    goodness Trader

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    forex is a risky business yet is an interesting one too, As a new trader, the most important thing to do is, learn more about forex, do more practice with a demo account. Learn from other traders experience, ask questions that is bordering you. If at all you want to trade forex for the first time, open a micro account and invest little money on it, I mean invest what you can afford to loss since loses in forex is unavoidable.
     
  12. Rob Taylor

    Rob Taylor Active Trader

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    LOL, yeah right. Another lamb to the slaughter. Get yourself an education before you start making comments like that. As someone else said, new traders read this stuff, and believe it.
     
  13. rizalhadi

    rizalhadi Trader

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    Day trading need a very strict approach. Especially when dealing with high impact news.

    In fact newbies need to have experience trading the news. That is the only way newbies appreciate the small or big detail of day trading
     
  14. mcxvia

    mcxvia Trader

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    I am agreed with your few points. The one I would recommend is Don’t trade off on news stories because News is discounted by the markets instantly so it is not possible to trade.
     
  15. georgialio01

    georgialio01 Newbie

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    i think in the beginning it seems bit of difficult in Forex Trading but gradually story get change
     
  16. kevintrader

    kevintrader Trader

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    A forex expert at Delemont Capital said that the biggest mistake traders make in Forex is not learning. So education is central before we begin to trade.
     
  17. Andika Anjani

    Andika Anjani Trader

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    Exactly... As long as you want to learn about it, it would feel less difficult for you...
     
  18. kevintrader

    kevintrader Trader

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    Lots of mistakes out there but a few of them are top of the list. A friend of mine at Delemont Capital shared with me the two biggest mistakes that traders make. What are they? I'll share in my next comment...
     
  19. radex78

    radex78 Trader

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    Good tips for trading, indeed in fact many trader get fail in forex and losing money easily from trade forex, and smart work is required knowledge and also experience,trading with short term trading maybe can make stress in minds because required high concentration and better we trade with style trading that can make more enjoy in trades.
     

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