This is a list of of forex trading tips for beginner traders. It is important that forex traders start the trading journey going in the right direction. If a beginner trader drifts off course, it could cost them 2 years of time and effort chasing bad trading systems and indicators that are worthless. This list of forex trading tips for beginners is listed in paragraph form, each paragraph presents a different tip for beginner traders to follow. Evaluate the list of tips carefully, as we believe it can save you lots of effort in going from beginner trading to successful forex trading.
List of Forex Trading Tips For Beginners
Find a trading system that works, and is effective at producing pips, Also, beginner traders must demo trade the system they like to make sure it works for them.
When you see a forex website, make sure is has a lot of high quality content, and all details of an effective, complete trading system. Most forex websites have a lot of advertisements and content that is weak with no details, not useful, or just a sales pitch.
Understand why currency pairs move. Compare the reasoning behind why currency pairs move and you will immediately and completely avoid technical indicators and robots. Study parallel and inverse analysis well and you will always know why the forex market is moving at all times, and on what pairs.
Do not enter forex trades randomly, even demo trades. Make sure you are following a entry management system, including high quality, real time trade entry management tools that are easy to interpret. The entry management system below is The Forex Heatmap®, it works for 8 currencies, and the CAD pairs are shown below.
Always trade in the direction of the higher time frames and trends, H4 and larger, that is where the pips are at. Scalping the smaller time frames will eventually crush any beginner forex trader due to the upside down money management ratios.
When starting with live trading, start with 2-4 micro lots and a stop order. Learn the process of placing orders, setting stops, and scaling out lots on profitable trades. Learn to make $50 first before moving into the larger number of lots.
Evaluate your losing trades, even losing demo trades. Did you get stopped out and the trade eventually went in the direction of the major trends? This is why using trend based system works so well. Did you ignore something important in your trading system or entry management system when you entered your trade??
We hope this article giving some basic forex trading tips for beginner traders is helpful, check out the Forexearlywarning website for details about our complete forex trading system.