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Tips for beginner traders

1.
Accept the possibility of losing your money as an inevitable fact
Every beginning trader must realize that nobody is insured from losses on the currency market. The basic rule in currency trading is that profits should be much bigger than losses.
2.
You should not be afraid of the currency market
Before you start trading, you must determine how much of your own money you are ready to risk and how much profit you expect to make. This will be your ratio of risk to return. Successful traders never enter trading without a clear understanding of their objective.
3.
To take part in trading only with a well-defined plan
Every beginning trader must realize that nobody is insured from losses on the currency market. The main rule in currency trading is that profit should be much bigger than loss.
4.
Don’t Let Greed Overcome You
When trading begins to go well, traders often forget about their previous goals, hoping for a further successful continuation of their trade. However, the market is very volatile and trends can end quickly. As soon as your target price is reached, take your profit or break even.
5.
Responsibility for your decisions
Successful traders never give up personal responsibility. You can take into account any advice from experienced traders, but the entire responsibility for the transactions made, regardless of their outcome, will rest solely on you.
6.
Influence of news on trading
An increase in trading volume caused by a high-profile event leads to a significant price movement. At this moment all advice of Forex traders is to use short-term and fast changes on the market to their advantage. Inexperienced traders often strive for one trading operation in a day which promises them considerable profit.
7.
Do not fall under illusions
If an open position loses, then do not stay in the market, hoping that the trend will turn in the direction you want. Close unprofitable transactions and leave the market immediately.
8.
Turn Off Your Emotions
The cause of losses is often excessive emotions and unwillingness to listen to advice. Forex requires a complete disconnect from emotions when making trades. You must follow your plan and don’t forget to put a stop sign.

Last tips for a forex trader before you start

1.
Take your time
Beginning traders often open several trades and then notice that they are unable to keep track of them. In Forex you can make profits both when the exchange rate rises and when it falls. You can only successfully make money on one currency pair. So focus on one currency pair first, and learn the others gradually.
2.
Remember about the stop order
A common cause of loss is improper money management. To prevent huge losses, be sure to use stop orders.
3.
Trading system
Every trader has his own trading system which he adapts specially for himself. Some traders prefer daily trading systems while others are interested in longer trading periods. The main thing is not to deviate from the planned trading plan and pay attention to the advices of more experienced traders. A few bad trades don’t always mean your trading strategy is losing.
4.
Fixing profits
A common mistake made by beginner traders is to close profitable positions too early. Do not deviate from your trading plan. It will not allow you to lose potential profit.
5.
Don’t turn profitable positions into loss-making ones
Closely watch the movement of the market. As soon as positive values are reached, set a stop at the market entry level. This will allow you to protect the invested funds. Then move the stop behind the trend so that positions remain in profit for you.
6.
Frequent Entries
There is nothing wrong with frequent market entries, but if used incompetently, no tips will help and such trading will bring you to bankruptcy. The essence of the strategy is that the trader increases the size of the position with additional transactions, assuming that the market will return to its previous state and all orders will be closed with a profit. However, if the currency rate deviates far from its previous level, the losses will be even more noticeable. So it’s better to just “buy and hold” one trade than try to recoup your investment.
7.
Advance planning
Don’t enter the Forex market just because of a sharp rise or fall in price. Plan in advance how you will trade. Have a clear idea of your entry point, profit taking levels, and when you should limit your losses and stop.
8.
Don’t lose capital
You must be able to save the money you earned. Close unprofitable positions in time, and keep profitable ones to a preplanned level.
9.
Momentum and Trend
Beginning traders are often unaware that momentum increases as a new trend emerges. Newly joining traders create strong momentum when they increase the total mass of open orders in the market as the trend increases. Trade when momentum is working in your favor. With the right approach, it will push your trades in the right direction and you’ll reach the profit taking point even faster than you thought possible.