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Beginner traders are advised to always make an effort to trade the trends. Going against the trends is an option only for those patient enough to wait it out in the long-run. Obviously, such an approach requires generous balances as well, something which is a luxury a beginner cannot usually afford.
Going against the trend exacts an additional emotional toll upon the trader too.
The first thing you have to set straight about your trading effort concerns your goals. Do you want to dabble in trading just a little bit to see what it is all about? Do you wish to take it one step further maybe, or even get to the point where you make a living off it?
These goals determine your overall risk tolerance, as well as the amount of money you’re willing to push into the venture. Both are extremely important variables of the trading success equation and it is relatively easy to get them both wrong, especially if your goals are vague.
successful trading will not come with a foolproof recipe. You need to make up this recipe as you go, on the move. To make matters worse, it changes all the time.In order to keep up, you need to be level-headed and always available to trying out new strategies/analysis methods, without getting tangled up in the intricacies.. this also means read, . here on Forex broker news or somewhere else, does not matter but read. this is crucial.
Once you have your goals set, and thus success and failure clearly defined, you need a plan to get there. Define how much time you’re ready to sink in to the affair and also how much money you’re willing to lose during your initial trial and error stage. Yes, you will mostly lose in the beginning as there are no guarantees in Forex trading.
Sticking to your plan makes sense in more ways than one: if you do your best and still end up short of your targets, you know it is time to pull the plug on the experiment.
What should your “battle-plan” look like though? Write down the following:
we at Forex Broker News believe that The importance of picking the right Forex broker cannot be stressed enough. Unfortunately, while this exercise should be a simple one, due to the peculiarities of the industry,it really is everything but.
First off: there are scores of crooked brokers out there, whose only reason for being in the game is to fleece unsuspecting depositors.
Beyond the fraud aspect, there are still scores of other issues you need to get right with your broker. You need a proper account type (which offers you proper trading conditions and leverage-options), you need good customer service and you need a decent trading platform.
Make sure that the account-type you pick is indeed in-line together with your above-mentioned goals and plans. You do not need a professional accounts if all you’re planning on is a little bit of occasional trading. The same goes vice-versa.
You need to understand that while leverage increases your profit potential, it also increases the risks you assume through your trades. The wise things to do in its regard is to go for as low leverage as possible. As a beginner, you do not need increased risks/volatility.
Regardless of how naturally talented you believe yourself to be at FX/CFD trading, you will go through a period of learning from your errors initially, and that’s going to cost you money if you’re in the real money game. The Demo Account gives you an opportunity to save that “tuition”. Take it!
FX trading success won’t happen overnight, so you need to be in the game for the long-run. Start out with a small account and set it as your immediate objective to increase the size of your balance through profitable trading. Do not fall for the lure of the big leagues and attempt to shortcut your way there through ever more generous deposits.
Remember: if you cannot increase your balance through trading, there is no point really in adding more money. You’ll only increase your losses that way.
Focus on just one trad-able asset initially. Learn technical analysis on this one asset and try to figure out the fundamentals. A popular currency pair like the EUR/USD is perfect for this purpose, since you’ll get much better spreads and liquidity on it than on some exotic pair.
Once you have that one asset mastered, expand carefully.
This tip stems from the above one: stick to markets the movements of which make sense to you. It is very important that you understand what you are doing. Trading predicated on gut feelings and rumors is the recipe to disaster, as has been proven countless times by traders much more knowledgeable than you are.
Wandering outside your comfort zone may be recommended in life, but it definitely does not translate to trading.
This is why it is important to start out with smaller sums: your emotional response will be limited on amounts you deem more or less insignificant. As you get used to the whole emotional process of trading, you can also increase the amount of your trades, provided your balance-size allows you to do that.
Since we’re talking about gambling, we need to bring up the “stuffing” of dropping positions some gamblers like to do.
Adding to a losing position will not make sense in any way, unless you are after gambling thrills. Usually do not do it. Let your losing position be and fight it out on its own, according to your original plan.
…or at least make sure you understand the need for both. You are free to develop an affinity towards one or the other too, there’s no problem with that. Just make sure though that you do not ignore either side.
If the technical side tells you one thing and the basics contradict it, be mindful of them too. If you decide to follow an expert trader, make sure he/she takes both technical analysis and fundamental analysis into account.
Do you really need 4-6 displays set up for your trading? Not by a long-shot. As a matter of known fact, sticking to your current laptop/PC is the way to go in this regard. Why would you will need such an intricate setup to begin with?
The reason professional/advanced traders’ resort to such fancy display solutions is that they trade several assets. Since you will just trade a single one, you’ll be fine with a single display. Also, proper trading platforms offer split-screen solutions for the tracking of multiple assets, so if you graduate to 2-3 traded assets, you will still be just fine with your current computer.
Your goal as a beginner trader is to find a strategy/trading setup that works. This quest is a trial and error-based one, during which you will commit mistakes, but hopefully, you will get some things right too.
A successful trader keeps a diary of his/her errors and successful moves and learns from them. Remember: he who forgets the mistakes of the past is doomed to repeat them. In trading, that translates to direct financial losses.
There seems to be a misconception that to become a successful trader, one must be some sort of a math genius, running more intricate schemes and strategies than everyone else out there. This is simply not true. Keep your specialized and fundamental analysis as well as your risk management, as simple as possible.
Define your goals, draft your plans and follow through in a level-headed manner.
Automation is not only the best way to allow small edges to generate significant profits, it is also the best solution to taking the emotion factor out of the equation.Obviously, by urging you to automate, we do not want you to purchase fancy trading robots (that never seem to work) or to buy into one of the countless auto-trading scams away there.
You can make use of legitimate auto trading solutions though, such as MT4’s Expert Advisors, which let you set the strategy that you want to push, the way you want it pushed. EAs just trade away while you’re sleeping, based on the parameters defined by you.
Profitable FX trading is indeed a game of probabilities. What this means is that you’ll never find the way to income off every single one of your trades, because such a way does not exist. You will win some and you will lose some.
What expert traders do is they make certain their losses are insignificant compared to their profits. To be able to pull that off, you need to understand probabilities as well as risk allocation/management.
While you won’t be able to fight the styles – as said above – you will still have to be patient. Keep a cool head about the whole thing.Recognize your failures and learn from them. Never assume that you might have some kind of “natural talent” for trading.
Nowadays, there are social trading solutions out there by the score. Some of these platforms are communication-focused, providing investors with an excellent environment where they can discuss their experiences and make heads and tails of their errors with the help of other – potentially more experienced – traders.
While listening to the opinions of others is almost always productive, never forget that you are the one wholly responsible for your decisions.
As with any venture, persistence is key to lucrative trading too. As said above, this game is one of probabilities, and in the event that you manage to get it all right, it will still take some time for your edges to translate into actual profits.
Furthermore, your abilities and trading knowledge need time to build up. Your primary mission is to make the learning process as financially and emotionally painless as possible. Ensure that the undertaking does not interfere with your life and future goals in any negative way. As long as you are able to achieve that, you should be OK in the long-run.
As made clear above, money/risk management is an integral part of the profitable Foreign currency trading experience. At the end of the day, this is where your success is made/broken. The objective of money management is to shrink your losses to manageable levels, while increasing your profits.
Though this is the factor which most beginners will focus from the get-go, it should be fairly down on your list of priorities.
Yes: being able to perform proper analysis is indeed essential but overcoming the emotional and risk-management related aspects of the early trading experience is far more important. Only once you have these challenges covered, should you consider switching your focus to analysis.
Picking the right time frame for analysis/trading is usually more important than one would believe at first glance.Low time-frames like 1 minute, do not allow for much analytical thinking. There’s a lot of robot-trading going on at that time frame too.
Generally speaking, nothing below 5 minutes time-frame-wise is healthy for a beginner trader. For swing trades, even higher period frames of 1hr+ should be considered. Obviously though, you should not look at just one time-frame. To get the proper, big picture, you will need to look at higher time frames too than the one at which you are trading.
What is the mission for Forex Broker News.
there is simply too much info out there and no source is able to provide all. if there is i assume that google will buy them instantly 😉 so we at Forex broker news, just look to keep people up to date on what is happening with the brokers. there are currently over 2500 Forex brokers active and many open and close every year , also for Forex broker news this is too much to keep up to date so we are not able to do this either , that said we are up for the challenge to try to find the hidden gems in the fx world and for those broker you really have to look out for. a big budget broker with many channels and news also has a huge burn rate and this in general means that someone has to pick up the tab and that will be you the trader, so bigger does not always mean better in this industry. if you have brokers you want Forex broker news to have a look at or want to post your own article or analysis , just leave a comment in the contact page and we will make it happen.. contact us here