Forex ABC.
Every newbie to Forex asks the same question: Where do I start? This section of the website is dedicated to answering this question, covering the entire trading process from A to Z, from preparation and the basics of using the trading terminal to the most important points.
Types of orders on Forex.
Using a trader's trading terminal, you can place several types of trading orders, some of which are standalone orders, while others
serve as supplements to existing ones.
To trade effectively, it's important to know all available options; this will significantly expand your trading capabilities.
Orders are primarily divided into urgent (instant execution) and pending orders, and we'll begin with these.
Forex indicators and scripts.
Gone are the days when traders had to manually perform all calculations, with supporting information provided only on paper.
Now, traders have access not only to a trading terminal but also to specially developed scripts that significantly simplify, ease, and make trading more convenient.
Why tediously calculate the required level or constantly monitor the spread size? A suitable indicator or script can easily do it for you.
It's worth clarifying right away that, in Forex terminology, indicators are technical analysis tools that assist in market analysis. Scripts, on the other hand, are small auxiliary programs designed to make a trader's work more convenient and, therefore, more effective.
Switch to a cent account.
If you've successfully mastered all the technical aspects of trading on a demo account, it's time to move on to trading with real money. Don't linger on the demo account for too long,
as this can only harm your understanding of the forex market.
Working on a real account will help you develop a feel for the market, teach you to manage your emotions, and resist psychological pressure.
Obviously, you shouldn't start your trading career with multi-million dollar trades right away—such experiments often end in failure. A cent account is specifically designed for beginners.
brokers offer the opportunity to trade on a cent account , although reputable brokerage firms have recently also launched similar platforms.
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 often leads to losses, and sometimes even the complete loss of a deposit.
Trading based on intuition is unproductive, as the visual market picture is quite misleading and often leads to incorrect decisions. To correctly assess a situation, one must understand its underlying causes.
This is why it's so important to choose the right trading strategy, or create your own based on existing ones.
First and foremost, I'd advise novice traders not to get too carried away with complex strategies; most market players of the last century made good money without knowing Fibonacci levels or calculating moving averages.
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 generate profits or prevent losses—are versatile and can often be used for any type of trading.
There are a few commonly known tactics, including Martingale and Anti-Martingale, position locking, averaging, deposit acceleration, 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.
Don't expect to succeed by mastering the technical aspects of forex trading.
Market analysis has always been the key to profitable trading.
Using analysis, one can determine both the current state of affairs and the near-term prospects for future developments, and the resulting data is used to forecast price movements.
In exchange trading, there are two main approaches to market analysis: fundamental and technical, each with its own specific uses.
First and foremost, it should be noted that using one of these approaches is essential when trading forex. A simple glance at a chart doesn't always provide an accurate assessment of the situation, which can lead to losing trades.
The Seven Most Important Questions in Trading.
Many beginners ask, "What's the most important thing in trading?" In Forex trading, almost everything is important; there are no trivial details. However,
there are several aspects that deserve special attention.
These relate to both the trading itself and some preparation steps. Knowing them will help avoid many mistakes commonly made by any novice trader.
1. Leverage: the higher it is, the higher the risk of trading. More specifically, the greater the difference between your deposit and your account balance, the greater the risk of losing it. When starting out, this leverage should not exceed 1:50, unless you're using particularly risky strategies like scalping.
How to prevent deposit drain.
For some reason, novice traders only address the issue of deposit losses after they've completely lost their capital.
Although this can only be prevented, not corrected, there's simply no way to recover lost funds, as deposit losses are the trader's fault.
Moreover, even setting a stop-loss or trailing stop isn't always enough to prevent this. So
, what should you do to prevent your broker from forcibly closing your position?
How not to lose on Forex.
Reviews of forex trading suggest an interesting conclusion: most newbies come to the online exchange looking for easy money, but
only 5% of new traders actually manage to make money.
Therefore, the most pressing question in the current situation is not "How can I make money?" but "How can I avoid losing on forex?"
Finding the answer to the latter question should be the key for any beginning trader, as preserving their existing funds is crucial in the beginning.
So, here are the basic steps to avoid losing money on forex:
Transfer of position, pros and cons.
There's a constant debate among traders about whether or not to rollover positions overnight. Most players prefer intraday
trading, but there are also many who favor longer-term trades.
Rollover on Forex, while requiring some expense, is sometimes essential to profit or avoid losses.
It all depends on the specifics of the trading, such as the trading instrument, leverage, and the current market situation.
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, stock trading isn't as complicated as people say. Most traders trade successfully for a while, but then
an unpleasant event occurs that causes a significant drawdown of their deposit.
It's common for the losses of one unsuccessful trade to easily outweigh a dozen successful ones, sometimes leading to a complete loss of the deposit.
To reduce the risk of dangerous situations when trading Forex, it's best to avoid trading altogether during these moments.
When do drawdowns and deposit losses most often occur?
Reserve for Forex trading.
There are many reasons why you could lose money on Forex. The most common is a trader's lack of experience, followed by
technical issues, the broker's ability to transmit quotes, and the way orders are executed.
Almost no one is immune from losing their entire deposit, so you should think about how to recover from an unfortunate set of circumstances.
Of course, some brokerage companies offer deposit insurance, but to qualify for this insurance, you must first trade a certain amount to accumulate enough to cover any losses.
Therefore, it's best to consider your own security.
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 solely by increasing profits, completely disregarding the size of their losses.
Loss management is sometimes the deciding factor that can radically change an existing situation. It's a complex process, but it always yields excellent results.
The key is to use the right approach and not limit yourself to stop orders alone.
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