Discussion in 'General Forex Discussion' started by alonevivi, Jul 29, 2011.
Whats your standard of little capital?
There are lots of tools to make trading Forex easier, but nothing is more time-efficient than charts, hence the importance of knowing the charts. The quickly understand the charts, the better you'll be analysing each trade.
I think that traders from different countries vary the understanding of 'little capital'.
As for me, it is under $500.
for me too
Environmental distractions and boredom and stress cause a lack of focus and it affects the way we make trading decisions. Try trading during quiet times. It contributes to making wise decisions about the market.
Educate yourself. The uneducated lose here. Trading in the markets is a battle of give and take and professional traders are prepared and they take their profits from the rest of the crowd who are uneducated, lacking a plan.
5 Tips for forex beginner
1. First of all you have to think that you don't have capital so you have to make money for your better future from forex trading.
2. Now open a demo forex account and think that you have borrowed money from a guy's who is going to take your body parts if you lose his money.
3. So don't trade until you fully understand about forex market and try to understand why price fluctuate, search online with what currency you are going to trade.
4. After lot of research you got a little idea form market monitoring, people gossip, fake news and form lots of resources.
5. If you are now confidence then little invest from your demo account and see the result and try to find out what you learn from your research and what mistake you did. Congratulation you understand market, So trade and make 10x capital which you get from a dangerous person. If you reach your goal then it's time to real challenge and never take leverage. I think my tips will be very helpful for beginner. Thanks
To newbies I say, Money will come when you are doing the right thing. I think the key to becoming successful is to love the game more than the result.
There are going to be losses as long as it is forex. However, you can be successful at it if you set a goal and take action. But you must acquire the knowledge and the discipline to accomplish these goals.
Here are the few tips that according to me must be kept in mind as a forex beginner:
1. Learn the basics, Plan your goals and abide by them.
2. Select your broker carefully and also go through all the terms & conditions.
3. First try demo account; pick your account type and setting the leverage according to your needs & expectations.
4. Get deep insight of the factors that can affect the movement of the market, study both technical and fundamental factors.
5. Always study your own success and failure and take notes properly.
6. Be realistic and patient when trade moves against you.
If you follow the above mentioned tips then you can surely achieve your goals and eventually can become an expert in trading.
The urge to use high leverage can be very tempting since you'd be thinking of high profits only. But know also that losses can come quickly. But using less leverage can create a better trading environment with less account volatility. It would not be out of place to use 10:1 leverage.
With proper strategies and trading plans you can be more profitable in forex trading. All it requires is a lot of patience and focus. Some tips for forex beginners are:
understand Forex market thoroughly: Before making investments try to understand every single aspect of forex market.
set your goal: Forex trading can be a hobby or it can provide you a supplementary income.
Market psychology: Try to understand market psychology and reasons behind how it is reacting that way. This will help you to trade profitably in a long run.
try demo account: Before making real investment, practice your trading skills for at least 3-4 months. It's not a waste of time but it will help you to improve your skills.
Avoid emotional trading: when we lose money we become more emotional and invest more money in order to get the lost money back. But that is the time we have to be more careful and should act as a disciplined forex trader to avoid such type of emotional trading.
Demo trading for a long time is bad for a beginner since it dulls your senses to what a live trade really is. So if you are a beginner, demo trade a little and then go on a live trade with an amount of money that is small enough so that you can afford to lose it, but large enough so that you will feel the pain if you do. If you go from demo trading to live trading, you’re going to make totally different decisions because you’re not used to being subjected to the emotional pressure.
I'll always tell beginners to seek forex knowledge voraciously. The more knowledge you have, the easier you will be able to learn about new methods/strategies to help you make profits consistently. Acquiring knowledge is not always all about winning but about making you a professional trader that can inspire others to improve their learning skills.
The trap that many traders fall into is that they feel that their best move in trading options is to obtain the maximum amount of leverage possible. However, the answer is to reduce the amount of leverage you use when buying options.
For people who are new and planning to learn and eventually wanted to try forex, it is important not to make a rush decision about investing your money. It is important that you learn the basics, the ups, and downs and most of all, the losing and winning. Most of the people who's interested always skip the difficult side, but what makes it more challenging is that the difficult side is the highlight of trading. Of which you should know the advantage and disadvantage that would let you study more about it.
To regulate and reduce risk, it is very much advised to enter trades as close to the last pivot point as possible and exit if and when that pivot has been invaded. When this is done, risks can be reduced based on what the market says.
Survival is the first rule in Forex trading. Every trader should find its way to not give up after losing some trades.
Develop a realistic, disciplined attitude to succeed in this forex game.
Formulate a good trading strategy and give prior importance to money management as at the end it is all about money.
Beginner should always use stop loss to reduce the risk of losses and to keep in check the emotional influence in his trading
Discussions with the other experienced traders.
If you want to successfully follow a trend, you'll be required time, endurance, a strong belief in the ability of statistics, and above all, the enthusiasm to confidently embrace excellent trading chances.
Forex trading involves buying, selling, and exchanging currencies in the decentralized foreign exchange market. One must have a comprehensive understanding of different factors and events that impact global currencies. As a beginner, you can work on the analysis of global currencies.
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