Forex Trading. StartBarry Copeland 04 / February / 20 Visitors: 13
There are no unified rules for the proper Forex trading. Rather, there are only two rules:
• learn before you begin to start a real trade;
• find a good broker.
There are times when a trader at the very beginning of his career achieves some kind of success, while not particularly bothering to study tedious rules. But this success is ghostly and a deposit will inevitably follow him.
Without a broker, the participation of a private trader in the auction is simply impossible - he will not have the funds to fully compete with the financial giants. Therefore, the choice of a broker is an inevitable necessity, which must be taken with full responsibility, because a dishonest one can negate any efforts of a trader.
How to learn Forex trading?
Today there are many sources of knowledge on this type of business:
• specialized literature;
• articles on the Internet;
In addition to basic knowledge of currency trading, a trader will need the basics of analysis, as well as knowledge of the economic and political situation in the world. It will be useful to communicate with other traders, especially with successful ones.
How to start? Useful tips.
1. Take the choice of a broker very seriously.
2. The size of the deposit for transactions of 0.01 lots must be at least $100, made personally by the trader, and not received in the form of a bonus.
3. It is best to start trading on a demo account. Trading virtual money, the trader gains the basic experience of trading. Of course, trading on a demo, it is impossible to fully get an idea of Forex. But experience appears, and experience is very important.
4. The transition from a demo account to a cent one is ideal. This will allow you to experience already real trading, but with minimal financial risks. A month of such preparation will reveal the potential of the trader and he will be able to estimate his chances of success, and then proceed to create a personal trading system.
5. The role of analysis of one’s trade cannot be understated. Every action is necessary to be analyzed. It is best to work on errors after each transaction.
Important in brief
1. The psychology of trade
When making trade deals, you need to have a cold head, and those who turn Forex trading into roulette do not stay long in the ranks of traders.
Do not immediately try to make big money on Forex. If the transactions turn out to be successful and the trader likes this activity, you should not immediately do it with your main job. Let, for starters, this be an interesting hobby that brings additional income. Until interest in the game on Forex runs out, the chances of success will increase. If trading is made a risky duty, he is opposed after the first major failure.
2. Money management
Compliance with the rules of money management is a prerequisite. It should be remembered that:
• losses during one transaction should not exceed 4% of the deposit;
• setting a stop loss will not be an unnecessary action;
• you need to control your losses.
Beginners are not recommended to keep more than 1-2 transactions at a time. If after 30 real transactions the trader is "in the black" - this in itself is very good. If he “survived” on Forex for 3 months and made a profit of 5% of the deposit per month, this is already very good.
It should always be remembered that the trader will go really bad when he decides that limiting possible losses (stop orders) only increases the number of losing trades, inhibiting the growth of the deposit.
3. Individual trading system
A reliable and proven means of self-control, streamlining of their knowledge and applied methods is the Individual Trader Trading System. In fact, this is an action plan in which:
• conditions for opening a transaction;
• actions after opening (upon successful, unsuccessful, indefinite turn of events);
• support for self-control in the transaction process;
• completion of the transaction.
The tiger system is a psychological shield and at the same time individual rules of the game of the trader. At a minimum, it reduces emotional stress. Acting in accordance with it, the trader, as it were, follows his own advice. In a sense, these are thoughtful advice from a smart and calm person whose condition is different from the stress of a trader in the trading process.
If a trader adheres to the developed system and receives a permanent loss, then his trading system needs to be improved. If he trades without a system or often deviates from it, the reasons for his successes and failures will be unclear. Thus, the trading system reduces uncertainty and provides data for further analysis.