How Forex Beginner Traders to Start Forex Trading

Foreign exchange is one of the most actively traded markets in the world, with an average daily trading volume of $6 trillion, for which more and more investors are entering into this market. But for beginners, forex trading can be difficult due to their unrealistic but common expectations to this market.

Choosing a regulated broker is the beginning of forex trading. In this article, we will summarize some tips every trader should consider before trading currency pairs.

Choose A Regulated Forex Broker to Start Your Trade

The first tip has little to do with trading itself, but is nonetheless a crucial starting point. We recommended you to choose a licensed, regulated broker that has several years of proven experience.

Forex beginners should set aside plenty of time to vet different brokers and go through their reviews to make sure the broker you choose is trustworthy and regulated. The brokers ranking list may be a reference for you.

Educate Yourself

Keep reading and educating yourself on everything related to Forex trading. If you do this diligently you will be on the right path to understanding the complexities of the market.

Learn about the forex market and its patterns. Seek professional help if needed. You can also go through trading blogs, eBooks and financial market news to gather more information, and learn about trading.

Practice with An Forex Demo Account

Before placing your first trade, it is generally a good idea to practice on An Forex Demo Account. As a common way of attracting forex traders to use their services and deposit funds with them, most online forex brokers will offer a free forex demo account to potential or existing clients.

New forex traders should always practice on demo account for a period of time until you are confident and understand the foreign exchange market.

Make a Plan and Start Placing Real Trades

Creating a trading plan is a critical component of successful trading. It should include your profit goals, risk tolerance level, methodology and evaluation criteria. Once you have a plan in place, make sure each trade you consider falls within your plan’s parameters. Remember: you’re likely most rational before you place a trade and most irrational after your trade is placed.

Don't Overtrade

Being eager to learn a new skill is good, but there is a limit. Overtrading can result in a lack of concentration and reckless trades. As you develop your trading plan, set yourself a maximum amount of trades you will make per day or week.

Be Prepared to Deal with Risks

It is a known fact that Forex trading is very risky, only around 10-20% of Professional traders make a profit in the long run and around 50-70% traders lose their money.

In order to protect your funds as much as possible, you need to develop a Stop Loss. Otherwise, you can lose more than you had intended, or even more than your actual invested capital if the market goes against you.

Keep A Forex Trading Journal

A trading journal provides any serious trader who wishes to make money a tool to help them evaluate themselves objectively.

For forex trading beginners, keeping a trading journal can help you highlight your weaknesses and measure, track, and stay focused on improving your performance.

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