Tips for traders

Tips for Beginner Traders

1. Accept the possibility of losing your funds as an inevitable fact . Every novice trader should understand that no one is insured against losses in the foreign exchange market. The basic rule of thumb in currency trading is that the profits are much larger than the losses.
2. Participate in trading only with a clearly defined plan. When starting trading, you should determine how much of your own money you are willing to risk and how much profit you expect. This will be your risk-reward ratio. Successful traders never enter a trade without a clear understanding of their purpose.
3. Do not be afraid of the foreign exchange market. Many newbies are overly concerned about the uncertainty and risks in the Forex market. For those who can overcome themselves and delve into all the advice of traders, Forex offers truly unlimited opportunities in terms of increasing their capital.
4. Responsibility for decisions made. Successful traders never relinquish personal responsibility. You can take into account any advice of experienced traders, but all responsibility for the trades, regardless of their result, will rest solely with you.
Don’t let greed overpower you. When trading starts to take off successfully, traders often forget about their previously set goals, hoping for the continued successful continuation of their trading. However, the market is highly volatile and trends can end quickly. As soon as the target price is reached, immediately withdraw profit or move the trade to breakeven.
Influence of news on trading. An increase in trading volume caused by some high-profile event leads to significant price movement. At this point, all the advice of Forex traders is aimed at taking advantage of short-term and rapid changes in the market. Inexperienced traders often strive for one trade per day, which promises them significant profits.
Do not fall into illusions. If an open position loses, then do not stay in the market in the hope that the trend will turn in the direction you need. Close losing trades and immediately leave the market.
Turn off emotions. The reason for the losses often lies in being too emotional and unwilling to listen to advice. Forex requires a complete shutdown of emotions when conducting transactions. Stay on track with your plan and don’t forget to put stops.
The trend is your friend. Trade with the trend and your profits will grow.
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Last tips for the forex trader before starting

1. Take your time. Newbie traders often open several trades and then find themselves unable to follow them. In Forex, you can make a profit both when the exchange rate rises and falls. You can successfully earn only on one pair of currencies. Therefore, focus on one currency pair first and master the rest gradually.
2. Remember your stop order. Incorrect money management is a common cause of losses. Be sure to use a stop order to avoid huge losses.
3. Trading system. Each trader has his own trading system, which he adapts specifically for himself. Some traders prefer the day trading system, while others are attracted to longer periods. The main thing is not to deviate from the planned trading plan and pay attention to the advice of more experienced traders. Several unsuccessful trades do not always indicate that your trading strategy is unprofitable.
4. Taking profit. A common mistake of novice traders is early closing of profitable positions. Do not deviate from the intended trading plan. This will keep you from losing potential profits.
Do not turn profitable positions into unprofitable ones. Watch the market movement carefully. Once positive values ​​are reached, set your stop at the market entry level. This will help protect your investment. Then move your stop following the trend to keep positions in positive territory for you.
Frequent entries. There is nothing wrong with frequent entries, but if used ineptly, no advice will help, and such trading will lead you to bankruptcy. The essence of the strategy is that when a position is unprofitable, a trader increases its size by additional deals, assuming that the market will return to its previous state and all orders will be closed with a profit. However, if the exchange rate goes far from the previous level, then the losses will be even more tangible. So it’s better to just “buy and hold” one trade than try to recoup your investment.
Pre-planning. Do not enter the Forex market just because of a sharp rise or fall in price. Plan in advance how you will trade. Have a clear understanding of the entry point, profit taking levels and when to limit losses and stop.
Not to lose capital. You need to be able to save the money you earn. Close unprofitable positions on time and hold profitable ones up to the pre-planned level.
Momentum and trend. Novice traders often do not even suspect that momentum rises with the emergence of a new trend. Newly joining traders create strong momentum when, as the trend rises, they increase the total mass of open orders in the market. Trade when momentum is working in your favor. With the right approach, it will push your trades in the right direction and you will reach the profit taking point even faster than you expected.
Do not devote much time to unprofitable positions. Having noticed that an open position is unprofitable and, according to experienced traders, it is unlikely to change its direction, the most correct solution would be to close it and minimize losses. There is an opportunity to open a lot of profitable deals on the foreign exchange market, so it is not advisable to waste time on unprofitable positions.
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