1. THE ECONOMIC CALENDAR AND NEWS:
The first Forex trading tip covers the news and the economic calendar. For every trader, an economic calendar is an essential tool. Economics news has an impact on the markets, regardless of whether short-term traders or long-term swing traders. You can find news and news from Investing.com or Forexfactory.com calendar. It is published the exact time the news arrives. For example, Trading strategies can be based on the data.
2. THE DEMO TRADING ACCOUNT:
For beginners and advanced traders, the demo trading account is very important to test a trading strategy, platforms, etc. It’s a virtual balance account which imitates real trading money. The conditions are similar. The demo trading account enables the trader to trade safely with no risk. Many beginners trader begin with real money trading too quickly. We strongly encourage you to first practise with your demo account until you are profitable and secure. Furthermore, execution of orders must be carried out and the trading platform familiar to prevent serious mistakes. Any broker may open a demo account.
3. LEARNING AND CONTINUING:
You can become a successful trader with information and knowledge. Starting with the basics is important. The terms are usually not even understood correctly and you do not understand what you are doing. Forex Trading must be developed from the beginning as a foundation. You need to begin with complete basic knowledge. For instance, many brokers offer. trading books, Webinars, coaching, and more. This is an excellent way to update your knowledge.
4. CHOOSE CHEAP AND RELIABLE BROKER:
This is probably the trader’s most affordable trading tip. Trading charges can be added to the year, so you definitely have to look for a reliable and cheap broker. The broker should also be reputable and trustworthy. Any beginner finds it difficult to decide which broker is really good because of the extra possibilities. Be careful of the official regulations and services provided to the trader.
5. RISK MANAGEMENT:
Before each trade, the risk has to be planned and defined by the stop. There are several losses in a row involved in the trade. One should, therefore, use meaningful risk management to avoid damaging one’s account too much. You will quickly destroy your trading account and that doesn’t really make sense.
6. AVOID STRESS AND EMOTIONS:
Many traders are starting to trade in poor condition. For instance, if you are sick or stressed at work, you should not trade. Your body should rest because you have to concentrate fully on trade. Avoid distractions as well. The smartphone can disturb you during the trading process. Trading means making money and each trader wants to make the best of it. Therefore, you should concentrate fully on performance.
7. STRATEGISES AND RULES:
There are hundreds of functioning Forgin exchange trading strategies
. The major mistake of these traders is that they do not consistently follow these trading strategies. The strategy must be followed up step by step in order to achieve the best result. The trader is almost machine-like and rules are implemented. For Forex trading, a set of rules is most important. The guidelines for the trading strategy are described. The trader will probably fail without a set of defined rules.
8. STOP LOSS AND TAKE PROFIT:
The most important Take profit and stop loss are automatic limits which end the position automatically at any price. Then the trade is closed. In the case of profit or loss, this happens. Stop loss is the key tool to hedge a Forex trader risk. It is absolutely not recommended to trade without stop loss and this can lead to a high loss of capital.
9. AVOID SIGNAL AND ROBOT:
We have not yet found a stable signal service in more than 10 years of experience in Forex trading. It is a rip-off and the signal does not work in 100% of cases. Beginners are mainly concerned with signals and sometimes automatic trading systems. Ask yourself: Why should anyone give you profitable and preferably free signals? It doesn’t work! They either want to get high fees off you or earn money from you.
10. TRADING HOURS:
A Forex trader
should know his market definitely. This includes important foreign exchange opening hours. Some of the markets may be tradable 24 hours per day electronically, but trade hours play an important role in trading. During hours of trading, liquidity and volatility increase. Furthermore, the movements are less algorithmically controlled. This must be taken care of by the trader.
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