Venturing into the world of currency trading without the proper education is like attempting to drive a very fast sports car when you haven’t taken your first driving lesson. The odds are against you succeeding. Here are 13 Forex trading tips for new traders:
Make Your Own Trading Decisions
Avoid taking advice from any one person or any news channel, eventually you and only you are responsible for the profits or losses in your trading account.
Use Multiple Time Frames
Use multiple time frames in your trading analysis in order to increase the odds of having a winning trade. When analyzing the markets for a swing trade for example, it’s best to ensure that the Supply or Demand level identified on the 120 minutes charts is coherent with the Daily trend and far from a weekly opposing level.
Back-test Your Trading Strategy
Back-test your strategy, manually or robotically, to ensure that it is a profitable strategy and it has the potential to grow the trading account if applied consistently.
Join a Group of Like-Minded Traders
Surround yourself with people who are already successful and willing to share their experience and trades. The students’ trade room in the Mastermind Community in OTA is a perfect example of such an arena. The information shared inside these rooms is invaluable.
Choose your Forex Broker Carefully
The industry is filled with poor quality brokerage companies. It is the trader’s job to identify the good ones based on the fund’s safety measures they apply, the spreads they offer, the commission they charge, and the regulatory bodies they are subject to.
Learn to Let Go
Once a trade setup is analyzed and planned and the trade is taken, there’s nothing further to be done. “No more bets” as they say, beyond this stage.
Be Aware of Major News Releases Every Day
The important releases for any currency are scheduled ahead of time and published on many websites (usually under the title “Economic Calendar”). It is the trader’s job to be aware of these releases and take caution around that time.
Never Risk More Than 1% of Your Trading Account in Any Single Trade
This is especially true for new traders. This is important for both the trader’s psychology in case the trade was stopped out, and for the preservation of capital.
Ensure the Infrastructure is Adequate
From a reliable internet connection with large enough bandwidth and an uninterruptible electricity source, to a trading PC equipped for seamless performance.
Review Every Trade After It’s Closed
And not only that, but assess whether the trade plan was followed without any deviations. Take necessary actions accordingly.
Master One Style of Trading (i.e. Day, Swing, Position)
Trying to utilize all the trading styles, especially for a new trader, can only lead to confusion and inconsistent results. It is best to choose the style that fits your personality and focus on that.
Lead a Healthy Lifestyle
Nutritious foods and exercises are not only good for the body but they are also good for the mind, and trading is a psychological game. A trader needs to maintain a sharp and relaxed mind to adequately deal with the stress of a losing trade.
Stay Clear of Anyone Trying to Sell You a Forex Robot
Unless the trader developed and tested the robot himself, the chances are it will not work consistently. Trading is a skill that is acquired by the very few, develop this skill to elevate yourself to the top.
Acquiring the proper market education is every trader’s responsibility and duty towards himself if the goal is to attain a level of consistent profits. These Forex Trading tips barely scratch the surface of Forex education, but understanding and applying them is of crucial importance.