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4 Practical Tips For Forex Beginners

12:06 PM May 1, 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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losing streak perfectionism consistent profits starting capital initial investment market psychology japanese candlesticks PAMM trust management money manager holidays market sentiment CHF CAD Great Britain pound Swiss Frank reserve currency averaging morning routine initial capital potential profit reverse pattern rounded bottom rounded top saucer inverse saucer IB Program IB Commission Sharing reversal patterns deposits payment methods payment systems local transactions trader’s block market balance
trading mindset beginners novice traders trading strategy losses forex mistakes trading habits trading plan forex trading women in Forex female traders risk management broker profit trading instruments pairs price advantages of forex leverage FXCL investments copy trading advantages of Forex social trading professional traders trading psychology demo trading buy/sell bid/ask spread Metatrader 4 market analysis technical analysis fundamental analysis trade trading platform Forex trading novice trading dealing with losses charts timeframe indicators MetaTrader 4 trading routine support level resistance level trend low-hanging fruit stop loss loss trading history long-term goals open trade close trade daily charts swing trading intraday trading scalping trading setup Forex traders bullish bearish resistance support MA 200 trend trading professional trading EMA EA daily chart weekly chart Forex news highs lows account type cent trading Mini Micro Cent Partnership commission fees trading terms Stop Loss news trading economical calendar major news release currency pair currency rate national currency trading journal trades profit/loss emotions news release positions size Expert Advisors platform trading robot cryptocurrency volatility day trading position size lot account types cent accounts Mini account ECN Copytrade ECN accounts swap-free minimum deposit order execution liquidity providers demo accounts real account low-risk trading EUR/USD economic calendar majors cross-currencies exotic currencies base currency quote currency quotes bid ask Brexit United Kingdom European Union GBP Euro GDP WTO price levels moving average 4-hour chart 1-hour chart bulls bears false breakout cross-currency USD price action pin bar trading inside bar trading hands off breakeven stop loss 50% stop loss pin bar high-frequency trading position trading swings breakout strategy trading style Entry order Take Profit hammer shooting star inside bar pinocchio bar head and shoulders harami risk to reward ratio trading calculator trader’s age emotion control stop-hunting false signal trading session New York session Asian session non-farm payrolls fed rates decision central banks mentor teacher Forex education Forex books candlesticks bonuses tradable bonus no deposit bonus deposit bonus cashback pending orders counter-trend trading risk-to-reward ratio 1-2% rule uptrend downtrend news releases slippage emotional trading stop orders limits orders trailing Stop correlation Correlation Matrix EURUSD EURJPY RSI Overbought/Oversold indicator doji morning start candlestick pattern liquidity London session gap requote US dollar greed excessive trading Expert Advisor trading instrument Twitter Trump euro Canadian dollar Japanese yen Mexican peso currency pairs Fed China economic news currency wars USA interest rates trade agreement H1 H4 D1 sell trade buy trade price level trading system COVID-19 coronavirus lockdown checklist Default mode network Nonfarm Payrolls intraday traders lot size Stop Out margin breakeven pip point entry price chart candles weekly candle daily candle engulfing candle Doji W1 fears money management trading signals Charles Dow Dow theory primary trend Relative Strength Index signals market noise trading volume oversold/overbought corrections candle M30 GBPUSD GBPJPY pending order fundamentals Interbank order Stop order Limit order Standard account Interbank account liquidity provider M5 chart gold XAUUSD Chinese yuan flat US Dollar Fed Interest Rates inflation level XPTUSD platinum XAGUSD silver USDCNY Chinese Yuan instruments swap trading hours Buy Stop Sell Stop Average True Range ATR range sideways range price level trading scripts Excel tables entry point equity balance applications highs and lows RSI Fibonacci terminal server proxy OS Windows XP self-trading Forex advantages gap trading Fibonacci levels USDJPY Buy Limit Cherry Blossom market cycle mark-up mark-down consolidation distribution long positions short positions double bottom triple bottom double top triple top pattern signal presidential cycle Elliott wave Kondratiev wave Forex terminology quote standard lot mini-lot micro-lot cross pairs exotic pairs counter-currency terminology Margin Call long position short position buy sell candlestick chart bar chart line chart range market channel high low ADX OHLC patterns profit level martingale aggressive EAs VPS demo account EA tester trading signal chasing the market clicking the button oil trading lot EUR cent account Forex mentor novice trader emotions control fear psychological level round numbers Key Levels indicator MetaQuotes iOS Android mobile trading mobile terminal VPS server financial portals day trader position closing short timeframe fast trading news site news portal FXStreet Investing.com Forex Factory ForexLive DailyFX CPI PPI economic indicators Non-Farm Payrolls monetary policy FOMC retail sales inflation rates program installation intuition apps ECN brokers market makers financial 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market cryptocurrency market figures diamond divergent triangle symmetrical triangle reversal signal financial intelligence financial education long-term investing triangle ascending triangle descending triangle risk control stocks Forex mutual fund EUR/AUD AUD Australian Dollar Australia ECB RBA demo live live account spike bearish spike bullish spike breathing techniques meditation unusual trading tips useful habits nutrition intermittent fasting Three indians pamm mam expert advisors start-up capital business Forex business oversold overbought reverse signals 15-minute chart full-time trading discipline drawdown inflation devaluation IDR LAK export Russia regulations regulators Central Bank quantitative easing quantitative tightening Donald Trump Joe Biden coins indexes DXY ICO Mrs. Watanabe beginner trader carry trading young traders women traders productivity self-discipline rectangle sideways channel trend figure Alexander Elder John Murphy Jack Schwager limit order leaving Forex 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losing streak perfectionism consistent profits starting capital initial investment market psychology japanese candlesticks PAMM trust management money manager holidays market sentiment CHF CAD Great Britain pound Swiss Frank reserve currency averaging morning routine initial capital potential profit reverse pattern rounded bottom rounded top saucer inverse saucer IB Program IB Commission Sharing reversal patterns deposits payment methods payment systems local transactions trader’s block market balance