Forex trading for beginner traders
In order to make money on the Forex currency market, it is not always necessary to study the entire theory of trading; in practice, it is quite enough to simply develop your own strategy and follow it throughout the entire time.
You don't have to make a fancy plan; sometimes simple solutions work just fine.
The first steps are the most difficult in any business, this statement also applies to Forex trading, so for a novice trader it is important to know a number of things that will help not only save your deposit in the first month of work, but also earn money.
Forex trading for beginners should be carried out with minimal risk, even if at first you will not earn a lot, but you will not lose all your available funds,
Therefore, you should slightly change your approach to trading, setting the goal of the first months not to earn big money, but to learn to feel the market and manage transactions.
1. Concluding purchase transactions only - this option for opening orders is much easier to perceive on a psychological level, and as a result, the number of successful transactions as a percentage is greater than when opening sell positions.
2. Trading without a spread is an alternative trading option that helps you fully concentrate on controlling the transaction, you are not distracted by controlling the size of the spread, and the opening fee is paid later, depending on the trading volume.
This is not to say that this option is more profitable than the standard one; the commission amount is approximately the same, but it is a little more convenient to understand. It is often used by traders from Muslim countries, since according to their faith, accounts with a regular spread cannot be used.
You can try trading without a spread by opening an account with
3. Leverage - no more than 1:50, this option will give you the opportunity not to worry at the slightest fluctuations in the trend, you can calmly control the transaction and wait for the rate to go in the right direction again.
Moreover, a leverage of 1:50 does not mean that you must open transactions fifty times larger than your deposit; it is better to limit yourself to the volume of transactions in which your position will not exceed the available funds by more than ten times.
4. Only one order is open at a time - this approach will simplify control over an open transaction, at least adhere to this rule in the first month of work.
5. Trade only with the trend - this is a fairly common piece of advice, but if you follow it, you can save 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 periods of correction.
Moreover, trades should be opened immediately after the end of the rollback, when the trend again begins to move towards the main trend. It is advisable for novice traders to limit the duration of a transaction to one day; this will allow them to quickly understand the essence of exchange trading due to a larger number of opened positions. And at the same time avoid problems associated with transferring orders to the next day.
The simplest trading strategies for a novice trader
The simplest trading options include trading on news, opening trades on a breakout of the price level, or auto trading.
• Trading on the news involves constant monitoring of messages that affect the exchange rate of a particular currency; you open a deal depending on whether the news was good or bad for your trading instrument.
For example, if news came out about a default in Greece, it means we are selling euros.
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-automatic 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 in the range of 1.2820-1.2920, we can assume that if the value of the euro increases more than 1.3000, then the price will continue to go up, we place a pending order and wait for the result.
If you are interested in this trading option, you will find it - http://time-forex.com/strategy/strategiya-proboj
• Auto trading – there are several options for automatic trading, in the first case you install and use automatic advisors; a company is suitable for using them
In the second option, you can simply copy transactions of successful traders; the ForexCopy system has it
Forex trading for beginners involves using the simplest trading options, do not look for complex solutions, make a profit and study trading, while constantly searching for new solutions until you find your option.