Top 10 Tips to Learn FOREX Trading for Beginners
If Forex currency trading caught your interest and you are willing to learn Forex trading basics, the article is for you, here we will break down the fundamental tips to keep your trading a success.
1. To learn Forex trading, you must learn the basics of currency trading mechanisms and fundamental principles. Without this knowledge, Forex trading becomes a pure gamble and you will be playing blindly. Foreign currency exchange relations do not exist autonomously; on the contrary, the rates of currencies directly reflect the current economic state of certain countries or alliances. You must be willing to continuously stay informed about major world economic trends that will inevitably entail International currency rates fluctuations.
2. Find among trustworthy Forex trading brokers. All Forex brokers must be personally screened by you to find out whether your trading style matches theirs, whether the customer service is good, how fast the brokers communication works and whether they are willing to learn about your Forex trading strategies and provide opportunities for you to learn Forex trading if requested from a client. While this task might initially seem unattainable, meeting with just a few Forex brokers will create a vision of who you are looking for.
3. Define your Forex trading goals and strategies. Depending how much time you are willing to devote to learn Forex trading and to actual daily trades, you must define your exact goals. Is Forex trading going to be more of a paid hobby providing some supplemental income or you are willing to start a Forex trading career?
4. You can additionally learn Forex trading by reviewing available Forex trading accounts through your broker. Choose accounts that involve very low risk and initial low trade volumes that could be adjusted according to your investment goals. According to Forex trading tips from gurus, you should start from small amounts that you can bear to lose during your learning curve period. Once you feel more comfortable, increase your deposit and stay within your trading limits, re-invest gains and realistically assess your financial results. If Forex trading does not start bringing gains within a few months, either your Forex strategies are unrealistic or you might not be following Forex trading rules.
5. Choose your currency pair wisely. Start with 2 currencies you understand well, like for example, US dollar to Euro currency exchange trading. In addition, Euro and US dollar are one of the most widely traded currencies in the world and it could be a great way for you to learn Forex trading through these 2 currencies. Learn as much as you can about Euro and USD and stick to them for awhile until you feel more confident about Forex trading in general. Rushing too fast into the unknown currencies, like Yuan currency, for example, might lead to financial fiasco if you are just not sure what you are doing.
6. Take time to step back and analyze. Not only you will be able to learn Forex trading from your own experience, you will start seeing the big picture of Forex trading business. You might find it very helpful to keep a Forex trading diary where you carefully document your positions while explaining what reasoning lay at the basis of your Forex trading decisions. With time, you will see what thought patterns were correct and which ones were plain erroneous. A Forex trader who can analyze his positions effectively is bound to achieve success in the long run.
7. Introduce automated Forex trading system in your business. Obviously, you can not do this at the beginning of your career due to the lack of experience in Forex trading. But once you learn Forex trading, you will start noticing similarities, cyclical changes and clear patterns in everyday Forex trading. Recording these patterns using various Forex trading software enables you to cut through emotional trading and establish solid Forex trading platforms through repetition of Forex trading mechanisms.
8. Avoid Forex robots or any prediction Forex trading systems. Trading based on somebody’s advice or guidance is like living by what a fortune teller predicts to you. It simply is not wise! In the end, these Forex robots do nothing to add to your financial success, all they do is make money for their creators.
9. Ride the wave of Forex markets and do not swim against the current. While some professional Forex traders make lots of money playing against the markets, this method is not practical for newbie Forex players. Emotions, financial stress and uncertainty might force you to make the wrong move and lose all of your money. Concentrate on going with the market and accumulating small gains over a period of time continuously.
10. Consider managed Forex accounts. If you are a new player at the Forex market, do not have the time to learn all the ins and outs of the Forex market while still wishing to capitalize on currency fluctuations, getting a Forex account that is going to be managed by an experienced broker could be a good opportunity. However, there are both pros and cons of these types of accounts. The managed account is as good as its manager, so managers must be selected carefully. There are also added costs that are paid to the account manager as his fee for managing your account. There are also various scams that could occur with such account, so there’s a lot to consider beforehand.