State of the market
Trading ideas, forecasts, hypotheses, analysis results from traders
and analysts from all over
the world
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.