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 in 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.
Transition 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 Forex trades.
Any beginner starting to trade on a real account must follow a set of specific rules to help preserve their deposit.
Most books and recommendations claim that only 5% of investors become successful traders, but almost no one mentions that almost all new traders lose their first deposit.
Now, analyzing my past actions, I realize how easy it would have been to avoid the embarrassing mistakes that once cost me a significant amount of money.
Therefore, if you don't want to repeat the mistakes of the majority, use these rules for opening trades:
Stops in Forex: How to Protect Your Trade from Large Losses
Forex trading is quite risky, so a trader's primary goal is not only to make money but also to avoid losing their own money.
The latter happens much more often than the former, and the main reason most beginners lose their deposits is completely ignoring stop-loss orders in Forex.
There are several options for protecting your position from being completely wiped out, each with its own advantages and disadvantages.
Why is this protection necessary? First, you won't always be at the trading terminal; second, a connection failure or other technical glitch may occur; third, the exchange rate may change so quickly that you lose several extra pips when closing the trade.
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.
Auto trading capabilities on Forex.
On the forex market, you can trade manually or choose one of the automated trading options. The latter significantly increases
a novice trader's chances of making money.
Since automated trading programs are usually developed by professional traders, you can also use the Forex copy system, which allows you to replicate the trades of other traders.
Currently, dealing centers offer the following automated trading options: expert advisors, specialized trading terminals, and various signal services.
Each of these 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:
Position transfer: 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.
Forex trading, more than anywhere else, is fraught with a host of illusions, which often become the main reason for losing
a deposit or incurring large losses.
Many traders have a certain perception of forex, as if certain rules and patterns apply.
While this is true to some extent, one should never blindly trust the laws of the market and technical analysis; one should always be prepared for trouble and hedge one's trades.
The main illusions of trading include:
Best Forex Broker Affiliates
I'm often asked where to get money for forex trading. Everyone knows that the larger a trader's deposit, the riskier
the trading, as leverage can be avoided.
If you don't have enough money to open an account with a reputable brokerage, forex affiliate programs can be a great help. I personally earn additional income from such activities.
Forex affiliate programs are partnerships with brokers where you attract clients and receive a share of the spread from their trading.
How much can you earn with affiliate programs? Quite a bit, up to several thousand dollars per month. Below, I'll list 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 when trading on Forex.
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 enormous risk, and in Forex, this risk is only exacerbated by the use of leverage.
But not every trader realizes that, in addition to trading mistakes, there are a host of other dangers lurking beneath their radar that they might not even consider.
Forex security is a top priority and deserves special attention. A few minutes of your time can protect your money from scammers and others looking to profit at someone else's expense.
Let's explore all the risks unrelated to trading and capital protection measures.
Forex practice.
In theory, most people have a good understanding of economics and finance, easily guessing exchange rates and forecasting
market prices, but once they enter the Forex market, all their attempts to make money end in failure.
Some losers begin to blame their brokers for their losses, while others study diligently, still trading at a loss. So what's the reason for this change, and where have those insightful analysts gone?
Let's start with the fact that not all theoretical forecasts are confirmed; it's simply human nature to remember the most successful predictions that have come true. Unsuccessful forecasts are quickly forgotten, and the "analyst" develops an inflated sense of self-worth.
In stock trading, things are much more complicated. If in real life you predict that the dollar will appreciate against the euro and this trend continues for a week, you only see the final result, but fail to account for all the intermediate fluctuations. Yes, you've guessed the main trend direction, but you haven't accounted for corrections and intermediate price movements.
Earn money on Forex without knowing market analysis.
Most literature on Forex trading claims that it's impossible to make money on the exchange unless you know at least the basics of
fundamental and technical analysis.
But in reality, many traders successfully increase their capital without spending hours at a trading terminal and analyzing historical data and statistics.
The secret is quite simple: there are several options for making money on Forex without spending time on extensive 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.
Page 2 of 3
