Trading Like a Pro: 10 Forex Trading Tips for Beginners
10 Forex trading tips for Beginners that will accelerate your learning curve and success as a Day Trader.
The foreign exchange market often seems overwhelming due to its size and complexity – especially if you are new to it and not familiar with the rules of the game. Even if you already have some experience with previous commodities trading, it never hurts to remember the basics! Read our top 10 Forex trading tips for beginners below
I. The Fundamentals
Tip 1: Choose The Right Mindset
Everything starts with the right mindset. If you want to earn money online, you need more than WIFI in a café while you’re trying to make a few trades between espresso and cake.
It. Does. Not. Work. Like. That.
You need to understand that Forex trading is work. Every successful Trader avoids distractions. They choose a quiet environment where they can fully focus on their trading activities – and you should too. Don’t expect to get rich overnight, be willing to learn and put in the work.
Tip 2: Listen To The Market
The Forex market is always right. Accept that every Trader is only a small fish and that it is the currency markets that determine the direction, not us. Hence the best Traders listen to the market and adapt flexibly to current market conditions. Always consider technical indicators when trading.
“Don’t worry about what the markets are going to do, worry about what you are going to do in response to the markets”
– Michael Carr
Tip 3: Don’t Listen To Your Gut
Never pay attention to your gut feeling – emotions have no place when trading Forex. Especially as a Beginner, you may experience feelings that a professional Trader would simply ignore. Successful Traders do not let themselves be guided by emotions and make their decisions calmly and serenely.
Tip 4: Be Patient
Even the most successful Forex Traders have started small. Like most activities that require training or experience, it takes time to become a successful Trader. You can also not become a professional Athlete or Engineer overnight, right?
If you want to earn money online, you need to work disciplined on yourself every day. You must learn from your mistakes, identify your weaknesses and build on your strengths. If you haven’t enrolled yourself yet, we recommend our Free Forex Trading for Beginners online video course. Secure your place for our online video course now and we show you step-by-step how you can start trading Forex for real.
Tip 5: Accept Mistakes and Learn From Them
Even world-class Traders have bad days. Especially at the beginning of your trading career, you might experience more losses than wins. The key is not to lose your calm when losing money.
If you’re experiencing bad days, trading experts recommend: Keep your head up, analyze typical pitfalls of Traders and actively learn from your mistakes. Take a break, rethink strategies before reaching frustration or excessive losses. Under no circumstances, should you try to make up for the loss by increasing the stake.
That last sentence is so important, you better read it again.
Tip 6: Start Small
Unfortunately, Forex trading in theory often works much better than in practice. So, start with small trades and learn by doing. You can adjust your trading approach once you gain more experience, market knowledge and collect first success stories.
“Confidence is not: I will profit on this trade. Confidence is ‘I will be fine if I don’t profit from this trade’.”
– Yvan Byeajee
II. The Golden Rules
Tip 7: Never Trade Without A Strategy
Plan your entry exactly. Simply betting on a rising Dollar for no reason is like betting on black or red in a casino. Professional Traders always follow a strategy and stick to it without any “ifs” and “buts”.
As a Beginner, you most probably do not have a strategy yet. Don’t allow this to be of any concern, because that is our Partner Broker’s Trading Mentors’ responsibility! We support their proven strategies and an unparalleled online trading course so that you can start earning money from home as soon as possible. Our Clients have reviewed Diversit-e Smart Trade College as the best coaching company in the Forex education sector on social review medium, Hellopeter.com, out of more than 1000 companies and a Trust Index of 9.9 out of 10.
Tip 8: Minimize Your Risks
One or two trades should never destroy your entire Forex trading capital. That is why risk management, for example with a hedging strategy or stop-losses, is crucially important, especially for Beginners. Experienced Traders never risk more than 1 to 4% of their capital in one trade.
“Limit your size in any position so that fear does not become the prevailing instinct guiding your judgment.”
– Joe Vidich
Tip 9: Use Stop-Losses
Every Trader should be aware that the possibility of total loss and possibly debt is real. Successful trading is not about eliminating risks but managing it. You can manage risks with a simple function that any trading platform and Broker offers: the stop-loss order.
The recommendation to use a stop-loss is one of the most important Forex trading tips. It automatically sells once the stock reaches a predetermined level that you have to setup. Then the trade is automatically closed with a loss, but you cannot lose more than that.
Here are three advices for your stop-loss order:
- The stop-loss should be placed so that it is within a range that takes normal fluctuations into account and does not exit the trade too early.
- You should place a stop-loss before each trade to avoid the total loss caused by a single trade and the following fiasco.
- You should not only set a stop at the beginning of a Forex trade, but you should also adjust it. Successful Traders continuously adjust their stop price so that hedging alone already achieves price gains.
Tip 10: Get Paid To Wait
“Traders are paid to wait and not to trade” is an old London Stock Exchange saying, and it still has a lot of meaning today. Beginner Traders often run the risk of a large number of unnecessary trades to steer their trading accounts into insolvency.
Because they want to trade and can’t wait. Imagine you sit in front of your computer for several days only to find that there is no opportunity to trade. A lot of “newbies” start to “bend” their strategy because they finally want to start trading. At least you’re taking action, right?
Never do that. If there’s no opportunity, don’t trade. It is important to be patient and wait for the best entry opportunities.
“There is the plain fool, who does the wrong thing at all times everywhere, but there is the Wall Street fool, who thinks he must trade all the time.”
– Jesse Livermore
If you enjoyed reading our top 10 Forex trading tips for beginners, get in touch with out team of experts and start your journey today!