category:
FOREX

Some basic Forex guidelines for novice traders

Many people are coming to this industry every day and this is our job to tell them what to do and what not to do in their career. We know most of the people will not listen to us as it is not possible to tell everybody how to trade in this currency market. This article will ease the job for us and tell you some of the beginner’s guidelines that you need to follow as a novice trader. Most people lost their money at their novice time and if you do not know how you can be successful, you can try to use the wrong way to make a profit. This article will tell you some of the most common mistakes made by novice traders when they enter into this profession. They think of themselves as Warren Buffets and try to pull off some amazing tricks. Most of the tricks are not successful and they lost the investment. Many of them are successful to show the magic few times but if they trade like this in their career, they will never be on the right track of trading. Basic guidelines are important for your career that can pave the future track for you in this industry.

Keep your trading chart clean

The novice traders love to make things messy. Many retail traders in the United Kingdom often believe trading with a complex trading strategy is the best way to secure profitable trades. Unlike them, the experienced traders are always taking a managed risk in their account. They never overload their trading charts with indicators. Indicators can greatly help you to find the best trades in the market but this doesn’t mean you will be using the indicators blindly.

Learn about support and resistance level trading. The expert traders always use the price action confirmation signal in their trading platform to execute quality trades in the market. Follow the senior traders and you will be able to save your investment.

Never trust the groups, trade by your own

The first thing that you need to do as a novice trader is to trade all by your own. You will get messages about how wonderful Forex communities are and how you can improve your trading by sharing your ideas with other peoples in the group. These are all fake and do not trust them. The first mistake that people made in their career is by trading with groups and trusting their decisions. The group is never better than yourself and you can make better decisions than you. People who have no idea about this market usually form groups. Stay away from groups if you want to be successful.

Focus on your strategy than trading with your own ideas

This may seem sometime that your mind is telling the right thing. You should listen to your mind and stop whatever you are analyzing and place the trades. These ideas can lose your money and you need to focus on trading with your strategy. This market is not won by emotional trades but with analyzed trades.  Your strategy may not work all the time but it is how the traders make their money.

Learn as many things as possible

This market only rewards the traders that want to learn about the new trends. This, not a market where you will know something and learning stops. This is always developing and you also need to work on your knowledge. Read newspapers, websites, follow the professionals and their blogs and you will understand how this trading works.

Less is more

The less you trade and more you try to understand the trends, it will bring more profit for you. This is why the professionals always place few trades but they get to make the most amount of profit. Always try to place few trades, never overtrade. Analyze the trends but never overanalyze.