In this article we will give beginner forex traders a list of six important forex trading tips for getting started with the forex market. This list of six trading tips for beginner traders will help them avoid the normal pitfalls and problems that forex traders face when getting started. 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 years of time and effort chasing bad trading systems and indicators that are worthless.
This list of six 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 full scale lots trading.
Forex Trading Tips Number 1
Find a trading system that works, and is effective at producing pips. Beginner forex traders can get lost quickly in a sea of websites, robots and technical indicators. They get duped into believing that most of these approaches to forex trading works well. If you would like an effective forex trading system that is based on individual currencies, check the Forexearlywarning trading system. Beginner traders can easily compare this trading system to indicator based systems and robots and you will determine the Forexearlywarning system is far more effective.
The basis of the Forexearlywarning trading system is individual currencies, and more information about this is in this illustrated article about parallel and inverse analysis. See one of our individual currency indicators below for trade entries, it is called The Forex Heatmap®.
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.
Forex Trading Tips Number 2
Whatever trading system you choose, make sure you demo trade the system to prove that the system works for you. Demo trade the system to make sure you are consistent. If your forex demo account trading is going well, you can start live trading with 2-4 micro lots trade size with stop orders and practice your money management and scaling out lots. 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??
Forex Trading Tips Number 3
It is not necessary to pay for forex education. There are a larger number of websites that attempt to charge forex traders thousands of dollars for training and education. There are also many forex website that might have some free education, but the information is faulty and mostly based on technical indicators, which are worthless. What traders need is great information about how to trade the forex market, either free of for a reasonable cost. We invite all traders to check out our illustrated forex lessons package, which is totally free. We can teach beginner forex traders the right way to trade across 8 currencies and 28 pairs.
Forex Trading Tips Number 4
Understand what causes currency pairs to move. Without fairly strong price movement up or down, traders cannot make any pips or profits. Compare the reasoning behind why currency pairs move and you will immediately and completely avoid technical indicators and robots. Study parallel and inverse analysis and individual currency trends well and you will always know why the forex market is moving at all times, and on what pairs.
You have access to great tools like The Forex Heatmap ® and our forex market analysis spreadsheet for analyzing currencies. These tools will give you a picture of the forex market for better trade decisions.
Forex Trading Tips Number 5
Use rules and guidelines for your trade entries, here is a short list. 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. For our trading system we use The Forex Heatmap ®. It works for 8 currencies and 28 pairs. You can see an example of the heatmap signals in the above images for the Canadian Dollar (CAD) pairs.
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. If you need a set of rules for trade entries we can provide you with a set of trading rules for each and every trade.
Forex Trading Tips Number 6
Do not let not having any trading capital be a deterrent to having a forex trading career. If you are a beginner forex trader, and you do not have any money to fund a trading account, it does not matter. Third party capital and funding providers will fund your live trading account with up to $1,000,000 or more in currency buying power. All you have to do is trade well and profitably in a demo account and you will be ready to apply for funding. So as a beginner should focus on trading well and don’t worry about the money, it is available.
Forex trading tips for beginners, summary and conclusions: Becoming a professional forex trader is a possibility for almost anyone. By having access to a great trading system and free education from Forexearlywarning is a strong starting point. Traders can demo trade their way to success. When you are ready to trade live, lots of capital is available for traders to get their accounts funded, if they need it. We hope that the tips in this article will convince beginner traders that the opportunity to trade the forex is within reach.