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Thread: Six Forex Trading Tips for Newbies

  1. #1
    By: Gerald Njuguna


    You have decided to be a trader in the forex market, and you have no idea on how to start. Let us first start by defining what the forex market is and what it does.

    The expression forex, also referred to as the foreign market is a market for the sale and purchase of all kinds of currencies. It grew out of the early 1970's when floating currencies and free exchange rates were introduced. At this time, the forex market traders would be the people who place the value of one type of currency against another.

    Now, the market forces determine the value of a currency against another. One unique facet of the Forex market is that hardly any trading qualifiions are required of anyone intending to exchange there.

    Independence from external control ensures that only the market forces influence the currency prices. As the largest financial market, with transactions reaching up to 1.5 trillion U.S. dollars, or USD, the currency moves so quickly, it's impossible for one investor to substantially impact the price of any major foreign currency.

    Additionally, unlike any stock that is rarely traded, forex traders are able to open and shut any positions within minutes, because there are invariably a number of willing buyers and sellers.

    1. The very first thing you have to do is open a forex account. You will have to fill an appliion form which includes a margin agreement saying if the broker is going to be permitted to intervene at any trade the moment it appears too risky. Because most transactions are done using the broker's money, it is only logical that he protect his interests. However, once you have established an account, you can finance it and start trading in the forex market.

    2. Adopt a trading egy, that has turned out to be effective for you. Bear in mind that egies will work differently for different traders, and thus don't try to embrace a egy that works nicely for a different trader. It may backfire. Both accessible egies are either technical analysis or fundamental analysis. A combination of both is a more favored choice for experienced traders.

    3. Understand that prices move by trends. Forex has a popular saying, ”The trend is your friend” There are particular movements that have been studied over several years in order to identify a pattern in the fashion. These trends will need to be understood in order to understand a fantastic trading egy. For smaller accounts that are $25,000 and under, trading using a tendency may help improving your odds when compared to bi-directional trading. Many newbie's will look to trade in any direction, when they should be trading with a fad.

    4. Make sure you know which are the top five currencies pairs from the forex market. These are USD/Yen, Swiss franc/USD, Euro/Yen, Euro/USD and Pound/USD.

    5. For newbies, it is a good idea to maintain two accounts to ensure you learn how to play the trading game. Maintain one genuine account, one that you will actually use to exchange real money; and the next account should be a demonion, one that you can use to test alternative moves from the trading game. It is simple to use your demo account to shadow the transactions on your actual account so that you can widen your stops to see if you are being overly conservative or not.

    6. Always examine the one hour four hour and daily charts that concern your own transactions. Although you can exchange at 15 and 30 minute time intervals, doing so takes a couple of dexterity.

    Source:http://newbies4rex.blogspot.com/

  2. #2
    Quote Originally Posted by ;
    Great post Braveheart!

    I agree with of your points. Even though you're being very honest, there is no method to relay to newbies the challenge that's before them. If you don't have a buddy to reveal how, its like learning a new language. . .so bothersome at first.

    Along with this trend is your friend saying, I would like to bring this up: There are older traders. You will find daring traders. However, there are no old bold traders.

    That I think the major reason new traders lose much, is because they are edued(by their own broker) that its essential to over leverage.

    Another suggestion besides trading using demos is when you begin trading a live account begin small. Use a broker that allows unit pricing or at least lots. You may always add more money later if you are successful. Once its gone but you can not get it back.
    I resent the fact that you claim I am not Bold but recognize that I am definately Old:
    Abriged Bio:
    First Trade 1970something
    Last Trade Yesterday.

    = 30 years Trading and do very well thankyou.
    1; 2 decades or even 5 years IN isn't striking to me. Tell me you've been doing this Trading item for a Decade or even more I could sit straight up and listen. Until then, you are Coming Along.

    No slam intended.
    Only as I see the surroundings you are thinking of stepping into.

  3. #3
    Novice day traders often face ”paralysis by analysis” since they get wrapped up in watching the candles on their display and can't act fast when opportunity presents itself. If you're disciplined and work your plan, actually placing the order ought to be automatic. Decide on a proportion of your complete day trading budget which might be anywhere from 2% to 10%, depending on how much cash you've got and don't permit the size of your position to exceed it. You may miss out on an opportunity in the market.

  4. #4
    I want to go over in your very last point I mean, time period issue! Yes, higher time frames are comparatively secure than lesser time frames! If you follow any trend which may be broken in any time if your trend is contrary to the high time frames such as D1.

  5. #5
    Thank you a lot for this thread! Yes, using a specific trading egy is very much crucial for being an effective Forex trader! But, it's not simple job to produce a profitable trading egy or egy! I see, effective traders spent enough number of sessions on profitable trading platform! Incidentally, in my own live trading I utilize both kind of analysis! On the other hand, I trace money management and risk management policies in my live trading.

  6. #6
    Quote Originally Posted by ;
    Thank you a lot for this informative thread! Yes, having a specific trading egy is very much crucial for becoming a successful Forex trader! However, it's not easy job to produce a profitable trading egy or system! I see, successful traders invested enough number of sessions on profitable trading platform! By the way, in my live trading I utilize the two kind of analysis! On the other hand, I trace money management and risk management policies within my live trading.
    If you have most powerful analyzing egy free of money direction, then it will be useless. That's why we must focus on cash managing approach first of all if we want to become maximum outcome by our egies.

  7. #7
    Nice post. Great trading approach Good money management = the maximal result. However, before live , you ought to use it in demonion to observe the performance the way that it works.

  8. #8
    I think that the most useful tips are:
    1. Great risk-management
    2. Follow the trading egy
    3. Dont trade against tendencies.
    lmho

  9. #9
    No 3 ,
    is a frequent trading attitude for the newcomers. They exchange again and again. They try to take revenge from here by more than trading and they become loser.

  10. #10
    Quote Originally Posted by ;
    I believe that the most useful tips are: 1). Good risk-management 2. Follow the trading egy 3. Dont trade against trends. Lmho
    What you believe about Good risk management? I think There's no Fantastic risk management because what's unsure in here

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