Forex Trading for beginners Do's and Don'ts

 In this fast-moving society. Everyone wants to earn a better lifestyle. Not every person has enough capital to start his/her own business. But they have enthusiasm and dedication to become successful businessman or partner. Advancement in technology have given birth to a new field called “Forex Trading”. Forex Trading is the biggest market in the world in terms of activity. A mammoth $5 Trillion is traded each day.

Initially only the wealthy could do forex trading but leveraged trading made it possible for everyone to work from anywhere to trade and compete the in forex market. There is a wealth of online brokers which facilitate trading with leverage, granting accessibility to traders with less capital who want to trade higher volumes. You can also trade using copy trading by following the plans of successful traders. But a question arises here that is “Is Forex a Difficult Market for Beginners?”

Forex trading for beginners

Current era of social media, news channels and other means of advertisement have collectively made Forex trading popular in every sector of our world. Either it is a beginner or an expert, everyone is moving towards forex trading. Crypto currencies have played a plus role in the advancement of forex market. But we have to make note that Trading is a business of statistics, NOT certainties. Many traders don’t understand the importance of this statement. They are just behind the prices to not miss even a single pip of the move. They simply ignore the rules of strategy and jump a bit earlier to gain a bit more. This is when the price does not follow the commands of your mind. Let’s discuss Do’s and Don’ts of forex trading so you could get a better understanding.

Forex Trading “Do’s”

Trading Plan

You decide to do something new and don’t want to waste your time and effort. What you do at first is make a proper plan. In Forex trading, you should have a trading plan that will help you in complete and successful execution of your trade and assist you in future to note where you have made a mistake and the points for your improvement. The pillars of successful forex lie with sound knowledge and understanding of the entire Foreign Exchange Trade Lifecycle.

Study and Learn Trade

Everyone here wants to complete the work in a smooth way rather than being stuck at every point. What you need to do here is learn to trade, learn about the basic key terms of trading, their importance and working. Do your own research and study dynamics of market to build your own strategies. Politics is a good place to start when looking at how the currency can fluctuate as well as other factors such as war and natural disasters. In August 2005, Hurricane Katrina devastated New Orleans cost the US economy about $ 45.15 billion. Try to generate your market predictions by yourself. Because it is very hard to get a trustworthy and profitable signal provider these days.

Patience

Patience is the key to success is a famous saying. Here in trading patience is the virtue and a vital ingredient when looking towards trading successfully.

Fibonacci Analysis

Having a good knowledge on the Fibonacci Analysis will help you to choose the best time of entry or exit for a trade as it enables you to foresee the market fluctuations.

Knowledge of Trading Platform

You must have knowledge of platform that you are using and do a detailed technical and fundamental study of the current trading patterns by using charts, continuation patterns or trend reversal. It will be beneficial for you as a beginner.

Copy Trading

Copy trading allows you to replicate the investment strategies of experienced traders. It is an Ideal deal for beginners and just as beneficial to experts. Copy trading makes perfect sense for anyone who wants to make money in the forex market without needing the requisite time or knowledge to invest themselves. Copy the following trading styles of successful traders as per your ease.

·         "Day traders" will be looking at short time frames of minutes or hours to complete their trades.

·         "Swing traders" may trade on market tendencies within a period of one day to a week.

·         "Position traders" may trade over time frames of one week to a month or more.

Automations and Trading

As a beginner you should have the knowledge of gain and loss ratio. You can use intelligent trading robots offered by various platform who can help you to achieve phenomenal success.

Forex Trading “Don’ts”

Don't overcomplicate strategy

Forex trading is game of strategies. Have a clear and smooth plan and objectives that will help in maintaining discipline and will keep thing easy and simple.

Don’t ever revenge the market after a losing trade. Ever!

Trading is not a game where you lose one time and you decide to play in an aggressive way with same plan. You lose one time, the market will act as a sea second time and you will start losing more. Make a new plan, be calm and work on your plan again. “Slow and steady wins the race” keep this in mind. Once you have reached your target profit, take it. Make use of "Take Profit" and "Stop Loss" features to alleviate temptation.

Don't let your emotions take over

In trading there is loss and gain. This is the reality of this world. We as human beings are emotional by nature. Don’t let your greed, fear or any other emotion overcome you.

Don’t Invest too much

Only invest the amount that you can afford to lose. We see traders on daily bases who invest in cryptos and other forex entities more than their wealth and go in debt after losing. Invest a small amount so if you lose the trade, you have more investment and a better plan to work with. 

https://thetradergirl.blogspot.com/2021/11/how-to-trade-forex.html Also, try to test your strategies in demo accounts first. It helps!