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4 Practical Tips For Forex Beginners

12:06 PTG 01/05/2020
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For beginners

All beginners always have a tough time. At school, at work, and obviously on Forex. You have to learn new rules, understand the essence of things, process huge amounts of information. And even the most trained in theory beginner often doesn’t know where to start in practice.

Each trader will have their own story. However, everyone will face similar problems. Your reaction to those problems and the methods you’ll use to deal with them - that’s what will be different.

Most beginners get lost when it comes to real money trading. There is a huge frightening world of the foreign exchange market right in front of you and you want to know how not to lose your entire investment from the start. I will give you four practical tips that you should remember when you take your first steps. Without further ado, here are these tips.

Always Start With Cent Account

If you haven’t come across this concept before, then cent is the account type where all transactions are carried out in cents. That is, if you put $10 in the account, then you will see $1,000 on your balance. Then simply trade as in a regular account. Just imagine that you really have $1,000.

Of course, you won’t earn much profit because each pip will cost not $10 when trading in 1 lot, but only $0.1. However, trading on a cent account has undeniable advantages:

  1. You will practice trading real money in real conditions while not risking large amounts.
  2. You will learn how to trade following your trading plan. Since you will risk small amounts, the chance of involving emotions will be minimal and that will exclude most of the beginners' mistakes.

Try New Things

I understand that this is rather obvious advice but its understanding and implementation are crucial. We all would like to get the magic grail, a special win-win trading strategy that will allow us to conquer the market the first minute. However, the experience of millions of traders has shown that such a thing simply doesn’t exist.

The only thing left for us is to find the best way to trade by trial and error. Since you are an individual person, with your own traits and characteristics, the trading method suitable for you will be unique. You just have to try all possible options and stop at the optimal one for you:

  • Try different trading styles.
  • Try trading with and without indicators. Choose the most convenient for you.
  • Test different trading strategies.
  • Try to trade at different times during the day, etc.

Of course, in theory, it would be great to learn from the mistakes of other people. However, in reality, you will have to make your own. What matters is your ability to recognize them in time and draw conclusions. Keeping a trading journal will help you out with this.

Don’t Waste Money

This is not about investments but about the acquisition of paid strategies, Expert Advisors, indicators, and payment for the services of a Forex mentor. I’m not saying that mentors are completely useless but at the initial stages when you just take your first steps in trading, it makes no sense to spend money on it.

You may need a mentor if you want to study in detail a specific complex trading technique. However, you will need this no earlier than after a couple of years of trading. You won’t become a confident trader with a consistent profit earlier than in two or three years, with or without a mentor. So, I see no reason to spend money on this, since the result will be the same.

Stop Searching For an Idol

I am talking about a Forex idol. It makes no sense to choose an individual successful trader whose methods and tips you will copy 100%. No matter how professional he is, his strategies might not work for you. You are two different people. What works for him will not necessarily work for you. It is worth listening only to general concepts. And the rest is to test before taking on faith.

To Summarize

Try to take risks as little as possible and embark on dubious adventures with strange Forex gurus that promise you a star from the sky in a couple of months. The best course of action for you would be methodical testing of trading methods and risk control using a cent account. I can only wish you good luck and perseverance in achieving your goal.

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beginner mistakes trend trading unrealized profit/loss Stop Out IB IB Program partnership IB Commission Sharing Sub-IB deposits withdrawals payment methods payment systems local transactions price levels taxes laws Forex forecasts bitcoin cryptocurrency Russia USA regulations regulators Central Bank Fed quantitative easing quantitative tightening inflation interest rate currency market stock market cryptocurrency market market cycle novice trading dealing with losses professional traders low-hanging fruit stop loss loss long-term goals trade open trade close trade volatility professional trading majors New York session gap order execution US dollar COVID-19 coronavirus lockdown Interbank order pending order Stop order Limit order Standard account Interbank account liquidity provider M5 chart Forex education terminology margin Margin Call bears bulls moving average long position short position buy sell chart highs lows psychological level round numbers Key Levels indicator ECN brokers 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sessions major trend trading strategies oversold overbought reverse signals Fibonacci levels European session cross currency GBP/JPY intraday strategy American session M5 Bollinger Bands Donald Trump Joe Biden coins indexes DXY ICO ECB martingale EMA EA weekly chart false breakout breakout strategy Entry order risk to reward ratio base currency quote currency bonuses tradable bonus no deposit bonus deposit bonus cashback trailing Stop EURJPY RSI Overbought/Oversold hammer morning start candlestick pattern Twitter Trump euro Canadian dollar Japanese yen Mexican peso quotes currency pairs China currency wars trade agreement H4 D1 sell trade buy trade trading system teacher mark-up mark-down consolidation distribution uptrend downtrend long positions short positions double bottom double top pattern signal presidential cycle Elliott wave Kondratiev wave Forex terminology quote standard lot mini-lot micro-lot cross pairs exotic pairs counter-currency candlestick chart bar chart line chart range market channel high low ADX OHLC cross-currencies EUR intuition trading robots Forex mentors exotics minors trading patterns wedges pennants triangles breakout trading range trading productivity multitasking range rectangle sideways channel trend figure Alexander Elder John Murphy Jack Schwager limit order reverse pattern rounded bottom rounded top saucer inverse saucer financial intelligence financial education long-term investing Forex scammers money managers million financial literacy budget goal setting demo live live account VPS remote trading mobile trading ethereum tether litecoin oil economic sentiment consumer price losing streak full-time trading start-up capital discipline drawdown currency CHF CAD Great Britain pound Swiss Frank reserve currency perfectionism women in Forex female traders advantages of Forex social trading trades positions size platform non-farm payrolls fed rates decision central banks Chinese yuan flat US Dollar aggressive EAs cent accounts 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Dow Dow theory primary trend Relative Strength Index signals market noise corrections candle M30 GBPUSD GBPJPY fundamentals USDJPY daily candle Buy Limit Cherry Blossom financial portals bars Doji harami harami cross engulfing belt hold sandwich piercing line dark cloud cover marubozu three black crows upside gap two crows breathing techniques meditation nutrition intermittent fasting self-discipline Three indians initial capital potential profit golden rule enter trade high volatility ascending triangle descending triangle 5 candlesticks signal confirmation loss control reversal patterns Trader’s Cabinet MT4 wedge figure breakout trading discipline pamm mam expert advisors self-education self-study professional education holidays market sentiment Forex myths British pound BoE unemployment rate education disposition effect averaging account types Mini account ECN Copytrade ECN accounts minimum deposit liquidity providers demo accounts real account low-risk trading exotic currencies bid ask shooting star inside bar pinocchio bar stop-hunting false signal Default mode network weekly candle engulfing candle W1 scripts Excel tables equity balance gap trading MetaQuotes iOS Android mobile terminal PPI referral Introducing Broker Japanese candles inverted hammer hanging man abandoned baby spinning top spinning bottom market balance Forex risks trading risks systemic risks technical risks force majeure criminal risks time management partnership program Forex bonuses Forex contests high water mark