ABC of Forex.
Every beginner, coming to Forex, asks the same question - Where to start? This section of the site will be devoted to the answer, in which the entire trading process will be described from A to Z, starting from preparation and the basics of working in the trading terminal, ending with the most important points.
Types of orders on Forex.
Thanks to the trader's trading terminal, you can place several types of trading orders, some of which are separate orders.
others serve as additions to existing ones.
To conduct effective trading, you should know all the available options, this will significantly expand your trading capabilities.
First of all, orders are divided into urgent (immediate execution) and deferred, and we will begin our study of this issue with them.
Forex indicators and scripts.
Gone are the days when a trader had to perform all calculations manually, and supporting information was provided only in paper form.
Now the trader has at his disposal not only a trading terminal, but also specially developed scripts that greatly facilitate trading, making it simpler and more comfortable.
Why make tedious calculations of the required level or constantly monitor the size of the spread; the necessary indicator or script can easily do this for you.
I would like to clarify right away that in Forex terminology, indicators are technical analysis tools that help perform market analysis. And scripts are small auxiliary programs whose task is to make the trader’s work more comfortable, and therefore more effective.
Switch to a cent account.
If you have successfully mastered all the technical aspects of trading on a demo account, it’s time to move on to working with real money. You shouldn’t spend too much time on the demo,
this can only harm the formation of your understanding of the Forex market.
Working on a real account will help develop a sense of the market, teach you how to manage your own emotions and not succumb to psychological pressure.
It is clear that you should not immediately start your trading career with multimillion-dollar transactions; such experiments in most cases end in failure; a cent account was specially invented for beginners.
The opportunity to work on a cent account is provided by so-called cent brokers , although recently reputable brokerage companies have acquired a similar testing ground.
Basic rules for opening transactions on Forex.
Any beginner starting to trade on a real account must follow a list of certain rules that will help save the deposit.
Most books and recommendations say that 5% of the total mass of investors become successful traders, but almost nowhere is it mentioned that almost all beginners lose their first deposit.
Now, analyzing my past actions, I understand how easy it was to avoid annoying mistakes due to which at one time I lost a round sum of money.
Therefore, if you do not want to repeat the mistakes of the majority, use these rules for opening transactions:
Stops on Forex or how to protect a trade from large losses
Forex trading is a rather risky business, so the main task of a trader is not only to earn money, but also not to be left without his own money.
Moreover, the latter happens much more often than the first, and the main reason why most beginners lose their own deposits is completely ignoring stops on Forex.
There are several options for protecting your position from a complete loss, each of which has its own advantages and disadvantages.
What exactly is this protection for? Firstly, you will not always be at the trading terminal, secondly, a connection break or other technical failure may occur, and thirdly, the rate may begin to change so quickly that during closing you will lose several extra points.
Choosing a trading strategy.
Unsystematic Forex trading most often causes losses, and sometimes even the complete loss of a deposit.
Trading on intuition does not lead to anything good, since the visual picture of the market is quite deceptive and often leads to making the wrong decisions.
To correctly assess the situation, you need to have an idea of the reasons that created it. This is why it is so important to choose the right trading strategy, or create your own version based on existing ones.
First of all, I would like to advise novice traders not to get too carried away with complex strategies; most stock exchange players of the last century made good money without knowing Fibo levels or calculating the moving average.
Basic trading tactics.
Any strategy is unthinkable without the use of tactics, so in Forex there are also a considerable number of different tactics that make trading more
effective.
Trading tactics - techniques used in Forex to make a profit or prevent losses, are universal and can most often be used for any type of trading operation.
There are not many well-known tactics - Martingale and Anti-Martingale, locking positions, averaging, accelerating the deposit and doubling.
Possibilities of auto trading on Forex.
On the currency exchange, you can trade independently or choose one of the automatic trading options, the latter significantly increases
the novice trader’s chances of making money.
Since programs for auto trading, in most cases, are developed by professional traders, you can also use the Forex copy system, which allows you to repeat transactions after other players.
At the moment, dealing centers offer the following options for automatic trading - advisor programs, special trading terminals and various services for providing signals.
Each of the above has its own advantages and disadvantages.
Market Analysis.
You should not hope that after studying the technical aspects of Forex trading you will be able to successfully trade on Forex; the key to profitable trading has always been
and is market analysis.
Using analysis, you can determine both the current state of affairs and the immediate prospects for the development of events; the data obtained is used in making a forecast of exchange rate movements.
In stock trading, there are two main areas in which market analysis is carried out - fundamental and technical, the use of each of which has its own characteristics.
First of all, it should be noted that the use of one of the types of analysis is mandatory when trading on Forex; a simple glance at the chart does not always allow you to correctly assess the situation, which is the reason for the occurrence of unprofitable transactions.
The seven most important trading questions.
Many beginners ask the question “What is the most important thing in trading”, in Forex trading almost everything is important, there are no trifles, but there are still several aspects that should be paid
special attention to.
They affect both the trading itself and some preparatory aspects; knowing them will help you avoid many mistakes that any novice trader usually makes.
1. The size of the leverage - the larger it is, the higher the risk of trading, and to be more precise, the more significant the difference between your deposit, the greater the likelihood of being left without it. At the beginning of trading, the maximum size of this indicator should not exceed 1:50, unless we are talking about particularly risky strategies such as scalping.
How to prevent deposit loss.
For some reason, novice traders turn to the topic of draining their deposit only after they have completely lost all their available capital.
Although such a phenomenon can only be prevented, and in no case corrected, there is simply no way to return lost money, since the loss of the deposit occurs precisely through the fault of the trader.
Moreover, even setting a stop loss and trailing stop cannot always save you from this trouble.
What needs to be done to prevent the broker from forcibly closing your position?
How not to lose on Forex.
An interesting conclusion can be drawn from reviews of Forex trading: most beginners come to the online exchange for easy money, but they actually
manage to earn no more than 5% of the total mass of new traders.
Therefore, the most pressing question in the current situation is “How to make money?”
and “How not to lose on Forex?” It is the search for the answer to the last question that should become the main one for any novice trader, since at first it is important to save the available money.
And so, the main measures to avoid losing your money on Forex:
Transfer of position, pros and cons.
There is a constant debate among traders about whether or not to transfer positions to the next day; most players prefer to conduct intraday
trading, but there are also quite a few supporters of longer-term transactions.
Although transferring positions to Forex requires some costs, it is sometimes simply necessary to make a profit or avoid losses.
It all depends on the specifics of trading, such as the trading instrument, the amount of leverage and the situation on the market.
Trading illusions.
When trading Forex, more than anywhere else, a lot of different illusions arise, which often become the main reason for
deposit withdrawals or large losses.
Many traders have a certain idea about Forex, as if there are certain rules and patterns.
Yes, to some extent this is true, but you cannot blindly trust the laws of the market and technical analysis; you should always be prepared for troubles and insure your transactions.
The main illusions of trading include:
The best affiliate programs of forex brokers
I am often asked where to get money for Forex trading, because everyone knows that the larger the trader’s deposit, the risk of
trading, since when trading you can refuse leverage.
If you don’t have enough money to open an account with a decent brokerage company, Forex affiliate programs can help you out. I myself receive additional income from such activities.
Forex affiliate programs are cooperation programs with brokers, under the terms of which you attract clients and receive part of the spread from their trading.
How much can you earn from affiliate programs? - quite decently, up to several thousand dollars a month; below I will give the most profitable options from my experience.
Dangerous moments of trading.
Surprisingly, exchange trading is not as difficult as they say, most traders trade successfully for some time, but then an
unpleasant event occurs that causes a noticeable drawdown of the deposit.
It is a common practice when the losses of one unsuccessful transaction easily cover a dozen successful ones, and sometimes lead to a complete loss of the deposit.
In order to reduce the risk of dangerous moments when trading Forex, it is better not to trade at all at these very moments.
When do drawdowns and deposit losses most often occur?
Reserve for Forex trading.
There are many reasons why you can lose money on Forex, the first place is not the experience of the trader himself, followed by
technical problems, features of the transfer of quotes and execution of orders by the broker.
Almost no one is insured against the complete loss of a deposit, so you should think for yourself about how to recover from an unfortunate set of circumstances.
Yes, of course, there are brokerage companies that offer their clients deposit insurance, but to obtain insurance, you must first work out a certain amount in order to collect the amount to compensate for losses.
Therefore, it is best to think about your own safety yourself.
Forex security.
Trading on the stock exchange is always associated with a huge risk; in Forex, the risk only increases after using leverage.
But not every trader knows that in addition to mistakes in trading, he is also faced with a lot of dangers that he does not even think about.
Security in Forex is one of the main priorities that should be given special attention; a few minutes of time spent will protect your money from scammers and others who want to profit at the expense of others.
We will analyze all the dangers not related to trading and capital protection measures.
Forex practice.
In theory, most people are well versed in economics and finance, they can easily guess exchange rates and predict
market prices, but as soon as they come to Forex, all their attempts to make money end in failure.
Some of the losers begin to blame brokers for their losses, others study hard, still working at a loss, so what is the reason for such a change and where do those insightful analysts go?
Let's start with the fact that not all predictions made in theory are confirmed; it’s just human nature to remember the most successful assumptions that came true.
Unsuccessful forecasts are quickly forgotten, and the “analyst” develops inflated self-esteem. With stock trading, everything is much more complicated, if in real life you assumed that the dollar will rise in price against the euro and this trend is observed throughout the week, you see only the final result, but do not take into account all the intermediate fluctuations. Yes, you guessed the main direction of the trend, but did not take into account the correction and intermediate movements in the exchange rate.
We make money on Forex without knowledge of market analysis.
Most of the literature on Forex trading says that it is not possible to make money on the stock exchange unless you know at least the basics of
fundamental and technical analysis.
But in reality, quite a few traders successfully increase their net worth without sitting for hours at a trading terminal and without analyzing history and statistical data.
The secret is quite simple - there are several options on Forex thanks to which you can earn money without wasting time on lengthy training in the art of trading.
Reducing losses on Forex.
Most traders try to make money on Forex using a one-sided approach to trading; they expect to improve their financial
results only by increasing profits, without paying any attention to the amount of losses.
It is loss management that is sometimes the decisive factor that radically changes the existing situation; it is a rather complex process, but always gives an excellent result.
The main thing is to use the right approach to this issue and not limit yourself to stop orders alone.
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