Forex Beginner Tips That Will Save You Money
Rule Number 1 is to be alive for every foreign currency trader. Every trader loses trades, but when you break, you can keep yourself in a position where you can not win the trades. Therefore, before everything you have to make sure that you remain in this game.
Many beginners and / or constantly losing businessmen focus specifically on a profitable trading strategy. But even if a good trading strategy is definitely important, using a solid funding management and a rational, disciplined business attitude will lead you to the end of the day.
Two rules of thumb are not to take more than 3% of your business capital towards business for good money management and to ensure that when you start, you have enough business capital for at least 40 trades is.
Forex Currency Tips 2. Always Use A Stop Loss
Stop loss is probably the most powerful weapon in your arsenal as a Forex trader, similarly professional poker player’s most powerful weapon is multiplied (if he tells you anything). Stop loss allows you to reach your risk to PIP, so always use it!
There are only really benefits to putting in stop loss, it forces you to think that the business you are considering will be considered a failure. After you open the situation, you can talk about staying in a business in yourself, all kinds of irrational excuses, but if you have set a stop loss before opening a business (when you were still thinking rational ) So you will always get this shining beacon, remind you that you will be a weak, passionate idiot if you have started a stop loss in the business
By imposing Stop Loss, you are forced to think about losing your profitable trades / business ratio. Suppose you want 50 pips exposure to win 100 pips, this would mean that you will need to trade at least 33% of the time to break. Do your trading strategies give you 33% of the time profitable business?
Another advantage of stop loss is that you do not have to fear that a badly chosen business will kill your whole account, if the business gets spoiled and for some reason you are not in a position to manually close it . So always remember to put it in a closed loss and never expand it after opening the business.
Forex Currency Beginners 3. Be Realistic
Unless you are lucky enough, you can not expect to stop 80% of your trades, or change the business capital of $ 500,000 in business capital of $ 500,000 in six months. With those expectations you are setting yourself up for frustration, disappointment and failure. (Unless you are very fortunate enough).
Try to see the real things from the beginning; Determine the attainable percentage of trades won by seeing your strategy and experience. Ask yourself how much time you can spend on business and learning. When you have a clear view of your business tools and terms, you will find it easier to work towards a profitable business strategy.
For example, suppose you are a day trader with a business strategy, where you take the risk, on average, 15 pips to win 30 After about 200 trades, it has been found that 50% of your business reached its profit target of 30 pips; The other 50% trades got sour and triggered your stop loss. So you lost 100 x 30 pips = 3,000 pips and lost 100 x 15 pips = 1,500 pips, for a total of 1.500 pips total. Gross revenue, because you still have to spread the spread, i.e. you pay your broker with the cost of the transaction, remember? Suppose that the spread is 2 px per position, which means that 200 trades put you 400 pips. So your net revenues were 1.100 pips on 200 trades, or 5.5 pips per trade.
Of course, having statistical significance of 200 trades is not enough yet, but at least this will give you something to work with: On average, each business will net 5,5 PAS.
Forex currency notes 4. Conversation with other traders
Information for early merchants is often overlooked by other traders. Of course, reading books about foreign currency is important. Books can provide you with a solid foundation in a short time, so that the basis for making it can be provided.
Practicing is another important factor in hanging things, but you will be surprised to know that fellow businessmen can respond more to you about your business strategy, or alternate ways of putting on a particular business about. So you should be a part of an online foreign exchange community and consider starting a business blog, so that people can comment on your strategy.
Do not be embarrassed because you are starting; Remember that we have all started as a beginner, and many merchants who are available at online business forums are also being started right now.
Foreign Currency Beginner Tip 5. Keep Your Feelings in Control
This last business note is probably the most important, as previously stated,