Forex Trading for Beginners
Making money on the Forex market doesn't always require studying the entire theory of trading. In practice, simply developing your own strategy and following it consistently is sufficient.
You don't have to come up with a sophisticated plan; sometimes simple solutions work just fine.
The first steps are the hardest in any endeavor, and this statement also applies to Forex trading. Therefore, it's important for a beginning trader to know a number of things that will help them not only preserve their deposit in the first month of work, but also make money.
Forex trading for beginners should be done with minimal risk, even if you won't earn much at first, but you won't lose all your funds either
Therefore, you should slightly change your approach to trading, setting the goal for the first few months not to make big profits, but to learn to feel the market and manage trades.
First, you should pay attention to some organizational aspects that make the trading process itself much easier.
1. Concluding only buy trades – this method of opening orders is much easier to perceive on a psychological level, and as a result, the percentage of successful trades is higher than when opening sell positions.
2. Spread-free trading is an alternative trading option that allows you to fully focus on controlling your trade. You're not distracted by managing the spread, and the opening fee is paid later, depending on the trading volume.
This option isn't necessarily more profitable than the standard one—the commission is roughly the same—but it's a bit easier to understand. It's often used by traders from Muslim countries, as their faith prohibits using accounts with a standard spread.
You can try spread-free trading by opening an account with
3. Leverage - no more than 1:50. This option will give you the freedom to remain calm at the slightest fluctuations in the trend. You can calmly control the transaction and wait for the rate to move in the desired direction again.
Moreover, leverage of 1:50 does not necessarily mean that you must open trades fifty times larger than your deposit; it is better to limit the volume of trades so that your position does not exceed your available funds by more than ten times.
4. Only one order is open at a time – this approach will make it easier to monitor the open transaction; at least adhere to this rule during the first month of work.
5. Trade only with the trend – this is a fairly common piece of advice, but following it can save you a lot of money. On any time frame, the price moves up and down, so open trades only in the direction of the main trend, waiting out corrections.
Moreover, trades should be opened immediately after the pullback ends, when the trend begins to move back in the direction of the underlying trend. Beginner traders are advised to limit their trade duration to one day; this will allow them to more quickly grasp the essence of exchange trading by opening a larger number of positions. This will also avoid problems associated with carrying over orders to the next day.
The simplest trading strategies for a beginner trader
The simplest trading options include trading on the news, opening trades on price breakouts, or automated trading.
• Trading on the news involves constant monitoring of messages that affect the exchange rate of a particular currency; you open a trade depending on whether the news was good or bad for your trading instrument.
For example, if news comes out about a default in Greece, then we sell the euro.
Description of the strategy itself - http://time-forex.com/strategy/torgovlya-na-novostyakh
• Level breakout – this type of opening new positions can be classified as semi-automated trading, since trading is carried out using pending orders, which are triggered if the price has overcome a certain conditional barrier.
For example, the price of the EUR/USD currency pair fluctuates within the range of 1.2820-1.2920. We can assume that if the value of the euro rises more than 1.3000, then the price will continue to rise. We place a pending order and wait for the result.
If you are interested in this trading option, you can find it at: http://time-forex.com/strategy/strategiya-proboj
• Auto trading – There are several options for automated trading. In the first case, you install and use automatic advisors. A company is suitable for their use
In the second option, you can simply copy the trades of successful traders, according to the ForexCopy system
Forex trading for beginners involves using the simplest trading options. Don't look for complex solutions. Instead, make a profit and learn trading, while constantly searching for new solutions until you find your perfect fit.
