12 tips for the beginner from the beginner
There are a lot of tips for trading in the foreign exchange market, but they are all general, so beginners violate them. But you have to know the measure in everything. During a year of trading I have formed some opinions about trading, and I want to share my small experience with some tips for beginners.
- Everyone advises to try out a trading strategy and start trading on a demo account. In my opinion, the demo account is the best way to learn how to press the buttons, and the rest you have to learn on the real account. Of course, it should be cent accounts. Yes, trading requires an investment. But let it be 10-20 dollars that will not bring you considerable financial distress in case of loss. Again, many brokers free of charge provide reals for trading with the possibility of withdrawing profits. Such accounts can be up to $500. This is a great opportunity for a beginner, even without trading with your own money.
- From my own experience, I can say that beginners are more likely to make a mistake with the entry point and the size of the take/stop. Of course, with time everyone will learn to define these moments more clearly. But to begin with, I advise to close trades with 20-30 pips profit by hand.
- If your trade has been in a drawdown for a long time, and you finally break even or make a profit, close it immediately, don't wait for a profit. Most likely there won't be any profit, because you made a mistake with your entry initially.
- Before important news and speeches, I advise you to close a profitable trade or at least move it to Breakeven.
- Study the main points of technical analysis - patterns and levels. Trace their work on history. Most likely you will find many regularities. Choose the most technical currency pairs to trade, it is better not to trade cross rates.
- Don't look for the Grail, better create your own. The simpler, the better!
- Read analytics, but don't trust it on 100%. Listen to your inner voice and make a deal only if you are confident in it on 100%.
- A separate topic is stop orders. A beginner would be better off trading intraday, because long term trading requires large stops, and a beginner cannot afford them.
- Beginners often overestimate the lot by opening several trades in one direction and with overestimated volume. I advise to close them quickly when the total profit on all transactions is reached, because the opposite is fraught with the risk of losing the deposit. Of course, it is better not to practice such trading.
- I advise you not to expect profit in the first year of trading, most likely it will not happen. Do not despair! Not everyone earns on , especially in the first years of training.
- Do not get your hopes up for a quick and big income from trading on .
- Don't get overconfident and don't become dependent on the market. You can't change anything.
Surely you will have your own items to add to this list as well. Let's discuss them on the forum.