Forex trading for beginners money
So the first thing you need to know is the following: line operations do not make people to make rica overnight, in a week or in the course of a month despite of some sales to obtain profits. While more quickly realizes that an aspiring trader, less money will lose.
Here are some statistics for the industry in Forex for beginners: 90% of retail traders lose 90% of your investment within 90 days. What pain! Right? And the blame is only of them.
By this, we will share some tips of buying and selling Forex for beginners that if followed, will help you avoid being out of the market within 90 days.
The food chain of the retailer trading
It is quite important to know how the industry plan and is the first thing that must be understood a person who wants to learn how to perform transactions with Forex for beginners.
The market is created with the collective combination of all its participants. The relative weight of the party which operates in the market is measured by the amount of money that handles that part: from hedge funds of $ 1 billion and investment banks, brokers of billion dollars, to traders with a couple of thousands of dollars.
Operations in the long term are more secure than the short-term for beginners in Forex trading
In the initial stage, its main objective is not to multiply your capital but keep it. The main objective in the operations of trading Forex for beginners is to minimize risks. The trend will make the proper use of money and simply follow management techniques benefit. It is only a matter of time.
Create or not, mathematics is useful in operations with Forex online and there are easy ways to calculate what balance, which leverage and volume of operations is needed for instrument for keeping risks under control. Thereafter are deducted the “points of safety” in favor of “entry points” to be satisfied with a balance between risk and performance. Not backward!
If you think that your capital is well protected – do your homework.
Reconsider the purchase of the software!
Other trading Forex for beginners advice is to be careful when purchasing a software of assistance.
Most of the software are free because of the level of existing competition between brokers. When you perform operations of purchase and sale, is clearly charge a fraction of their operation through daily swaps and a Commission. These are unavoidable costs.
Sometimes beginners in Forex trading are tempted to buy Forex robots also known as Expert Advisors (EA, for its acronym in English). Buy it if you think that an algorithm can do a better job than you, but this is not going to be easy money, especially if you are not a coder who wrote the code.
Some EAs work, but as markets change, so that it remains lucrative robots will require settings that you will not be able to perform. For example, there is a robot individual who works in a market with trends, whereas in an oscillating market a robot would embarrass your trading account, would destroy its balance before being able to say: stop, HAMMERTIME!
By the way, if you don’t know what a swap – it has not homework!
Sometimes, intraday Forex operations take much time and mental resilience.
Casual beginner in Forex trading is unaware that the majority of successful traders earn money with long-term trends. Keep your orders open for weeks, months and even years. Thus Forex works more as a form of investment and less as a kind of lottery. Any guide to Forex trading for beginners will tell you that it is a good thing.
Long term operations require patience, tranquility and be modest trading volumes. The few hours needed in front of the computer screen and the low-stress are a way of compensation.
It is easy to be impressed with the operations of buying and selling online: real time graphics, news channel business, etc. The truth is that less is more. Information overload can be counterproductive, so you have to filter it and lower the pace of their operations.
Access to graphics in real time does not maintain a constant surveillance or performing non-stop.
Learn about technical and fundamental analysis!
The analysis is to operate! Graphs are useful for short-term and long-term operations. You must be interested in daily, weekly and monthly charts. Any guide to Forex trading for beginners talk technical analysis will tell you that their main tools are the lines of trend, lines of support and resistance lines and indicators based on the same.
The guessing game is a game of elimination. Therefore, successful sales operations require 10% and 90% of analysis to make decisions. Ladies and gentlemen, think more and do less clicks!
Won’t you do harm have a minimum understanding of how fundamental analysis at the international level.
Do you want some task? Read about interest rates.
Not complicate it!
What is the best trading system Forex for beginners? The most simple!
Do not overload the charts with indicators or its strategy with arrangements and changes. While more complicated is its operation strategy, will have less chance to work and be able to follow it.
The following is an example of basic strategy of Forex trading for beginners:
Use the indicator simple mobile media technician from 10 days in any graphic of your choice. Whenever a candle closes with one price higher than the opening price, it is a signal to buy. Whenever the closing price is lower than the opening price, close your purchase and open a sale.
As you can see, this is a change of trend or Reversal strategy, since the closing of an order entails so opposed to the opening of an order.
Simple? Yes. Perfect? No profitable? It depends on the market. If a market trends – Yes, very profitable. If it is a midrange market – it is not profitable. It depends on you and the historical backtesting figure out how you will on average, in different markets and in different periods of time.
Not complicated, can be a challenge if you consider the amount of support tools that can be applied to graphs. Remember: it is not the amount of tools that are available, but of knowing how to combine them properly.