Forex trades: 5 the best tips for beginners

Many new traders enter the currency market every day. Trading on the Forex market is exciting, efficient and offers exceptionally high liquidity. Profits from forex trading can easily be reinvested many times before liquidity becomes a problem and investing can take place in the comfort of your own home.

The good news is that there are ways to avoid most of these errors (for example, use of economic calendar). Let's take a look at 5 for great tips for new players in the forex market.

1. Stop watching others

Stop following other traders blindly. In the meantime, they could change their strategy to another one or change the time perspective of the investment. You must first learn their strategy.

You can ignore important financial events if you do not understand them.

You should also avoid excess information from the financial world, if you are a technical trader, messages can add fiction to make the video more attractive. Remember that they are journalists, not traders. Be an independent thinker. Successful traders often think from a different angle than the crowd.

2. Stay in the real world, not in Hollywood

Be realistic, do not dream about a million dollar profits by investing 1000 euro, it is not possible. Whenever possible, Warren Buffet would have earned ten trillion dollars a year. Traders who want to get rich quickly lose out.

3. Choosing the right broker is important

As mentioned before, most forex brokers (not all, especially MM) are often happy when new traders hold their positions for too long and sometimes "help" them lose. Some unregulated brokers employ dirty business practices, but a regulated broker cannot afford it.

4. The less you trade, the more you use it

Trading with smaller volumes often makes you gain in the long run. Planning a large profit with a higher leverage is another major reason why traders-amateurs are cleaning up their investment accounts. Slow and steady profits win the race. You do not have to make money on all transactions to make your trading profitable. Be patient and disciplined, control your emotions.

5. Know your Stop Loss before entering into a transaction

Using stop loss is a must for a new trader. But most novices are so afraid of losing money and a very tight rate. A big loss on your account will not save you money, but it will harm your balance. Using a constant Stop Loss level is a bad idea. Follow the price change and give you time to think. Apply a smaller volume if you are afraid of losing money. You must have your exit plan before the order starts.

As you can see, greed can kill initially invested capital as well as profits. Follow the management of money, making stop loss for a safe distance and be disciplined. Learning to keep the price and keeping a transaction journal will help you lose less.

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