Like all other forms of trading, Forex trading is also more art than science. The successful traders are not just talented, but they practice discipline and perform self analysis to eliminate negative thoughts, emotions and keep the spirit high. For a beginner, losing money in Forex is not a good sign to start with.
Following are some tips to follow if you want to save money as a beginner.
Money Management
Survival is the most important thing in the Forex trading market. Hence, it is very much crucial not to involve in any money losing trades and make sure to stay in the market game.
Not only freshers, but many consistently unsuccessful traders concentrate exclusively on acquiring a profitable strategy. But apart from trading plans, concrete money management principle and a rational and disciplined attitude will get the beginner further at the end of the day.
Do not risk more than 3% of the capital in each trade. Make sure you possess enough capital for minimum 40 trades as a beginner.
Stop loss orders
It is one of the most vital weapons as a beginner trader in Forex market. The stop loss always permits you to analyze the risk down to the pip beforehand. Setting up a stop loss before the trade-opening, will remind you to think when the trade is going to be designated as failure. You'll be an idiot to ignore the stop loss signal and stay in the trade.
Profitable trades and losing trades ratio is vital to think which a stoploss -triggered analysis is. If you want to risk 50 pips to double of it that means you'll need minimum 33% of the time to break even. So your strategy can give you 33% profitable trade every time?
Be realistic and keep emotions under control
Everyone isn't made of Midas touch to close 80% trades profitably within 6 months. Try to visualise realistically from the starting. Fix an achievable percentage of winning trades as per your experience. After getting clear condition and trading tools, it's easier to plan and work. Trading is fun and exciting but do not get carried away. Control emotions like greed, frustration, gambling attitude and practice routine, exercise and practice in the market analysis aspects.
Interacting with other forex traders
Information is important and you can get basic knowledge and foundation from books. But practical experience and skills are something which isn’t provided in books. The feedbacks of fellow traders are handy and for that you should become a part of online Forex trading community. Don't be embarrassed to start a discussion because everyone started out as you at some point.#
