Learning to Trade Forex
Forex (what is it? The whole truth) is an international currency market that allows you to trade currencies from any convenient location and earn a decent income from trading. Forex is the oldest market with its own laws, developed infrastructure, already proven by millions of traders. It is older than the binary options market, which is also its difference. In addition, there are more features in Forex than in binary options trading. Here you can place various orders, take-profits, stop-losses, trade CFD contracts etc. This industry employs not only a huge number of speculators, but also the largest banks, dealers, investors, etc., who monitor the dynamics of currencies and service the market. It operates 24 hours a day, with a wide range of operations and opportunities, which are realized through a system of various institutions (dealers, brokers, insurance companies, etc.).
- Learning to trade forex from scratch
- Forex Market Basics
- Trading Basics
- Preparing for forex trading
- Technical and fundamental analysis
- Technical analysis
- Fundamental analysis
- Choosing the Right Forex Broker
- Trading strategies: what they are and what they are
- Strategies for forex trading by time
- Popular forex trading strategies
- What training courses are available and does a novice trader need them?
- Paid courses
- Free courses
- How not to lose money trading forex?
- Literature for Learning
- Risk Management
Earlier this market was available only to a certain audience (speculators, analysts, etc.), today, with the development of Internet technology, everything has changed: anyone can try for themselves the possibilities of this market, to receive income from it and to improve their knowledge in the field of trading. Now, if you have access to the Internet, you can independently learn what Forex is, register with a broker, trade on a demo account and go to the real trading in order to start earning real money. This market has a huge turnover, it has no geographical limitations, it is huge in its scope and possibilities, it is also available to those Internet users who have no special education.
Trading in the forex market - is trading in the terminal Forex brokerWhen a speculator enters into transactions by investing money in a currency based on the rise and fall of asset prices. In doing so, it is important for him to study the trading history of the asset, to take a certain position in relation to the currency. There are a lot of such speculators today, all of them make their profit trading on the Forex market from home. Trading on Forex is very simple: the player trades a currency against another currency, buying the value by which the asset should rise (long positions) and sells the value of which will fall.
There are not many currencies available for work on the Forex market: the American dollar (USD), the pound sterling (GBP), the Japanese yen (JPY), the euro (EUR), the Swiss franc (CHF), etc. It makes it easier for a trader to concentrate on working with concrete instruments, it's easier and faster to track their changes. This is how Forex differs from the market binary optionswhere a huge number of trading assets. To make forex trading profitable, traders use strategies, reliable indicators, different types of analysis (fundamental, technical), trading terminals. If you correctly assess the situation, analyze charts, choose a position to enter, place buy and sell orders, you can earn a lot of money.
Learning to trade forex from scratch
There are more and more traders on the Internet who are interested in the possibilities of forex. Some of them have experience with other markets: stockThe other people have not experienced trading at all. Others have not encountered trading at all. Everyone wants, having plunged into the world of Forex, to make decent earnings from it. However, there is a lot of information on the net that is necessary for such work. There is both useful and necessary information, and wrong and false. In addition, a newcomer to the market does not need the knowledge that is oriented to an experienced player and it is important to be able to distinguish this. In this part of the article we are going to tell you what a trader, starting to trade on Forex and learning to trade from the scratch, should know.
- Studying market theory
Working in the forex market, it is important to know about the basic terminology adopted here. This will help to understand articles, lessons, materials of thematic forums, which are available on the Internet. Important among such concepts, for example, are: "lot", "order", "market execution", "scalping", "Ask", "Take Profit", "spread", etc. If the trader is confused with the market terminology, it will be difficult for him to work here and even more so to achieve good results, so it is important to take the time to do it.
- Trading on forex broker demo account
A training account is not provided to a trader for nothing. All reliable and serious brokerage companies offer such service. After a quick registration on the website one can get acquainted with the possibilities of the platform for free, but it is important to be able to use this tool correctly: to study its functionality, see the availability of tools for market analysis, options, generally understand how ready the terminal is for trading, if there are any problems, what the personal account is like, etc. You can also ask a support manager questions and evaluate his professionalism, trade in a real trading simulator, but with virtual capital, expose trades and observe the performance, test strategies, indicator signals. Most brokers offer a demo account with no expiration date, which means that even after you sign up for a real account you can always try out demo trading.
Your First Demo Account at a Forex Broker you can open by filling out the form below. After that you will be able to trade on the broker's website, you will be opened a demo account for $10,000.
- Studying useful materials about the forex market
A trader must realize that in order to work on the market, it is not enough to understand only the special terminology. Stable trading on Forex implies much more. There are a lot of useful materials available on the Internet that are also important to consider and apply in your work: articles on money management, risk management, peculiarities of Forex trading, peculiarities of assets, methods of analysis of their dynamics, strategies and effective approaches to work, video lessons, webinars and so on. Among other useful materials we would like to mention the market analytics, reviews, news that will become a part of player's strategy, traders' success stories, secrets of their earning money. In many ways, the notion of a professional trader lies in the constant study of market opportunities, new solutions for asset analysis, etc.
- Studying indicator signals
Indicators - The indicators are also an important part of a trader's work and without knowing how to work with them, it will be very difficult to succeed in forex. Indicators and oscillatorsAs technical tools for market analysis, they are part of the technical type of analysis. On the basis of certain algorithms they generate signals of changes in trends, indicate the imminent end of the trend, reversals, etc. To be a successful trader it is not necessary to know all the indicators, but it is important to be able to use basic tools which are part of most of the classic forex trading strategies. The basic indicators are RSI, MA, MACD, CCI, Stochastic, Awesome Oscillator, Parabolic SAR etc. Complex tools are considered to be, for example, OBV, McClellan oscillator, Chaikin Oscillator, DPO, Ultimate Oscillator, Gator, Relative Vigor Index, ROC, Elder's Force Index, etc. With the right approach such tools will help the trader to decide on the market dynamics, steadily earn from forex trading.
- Learning trading strategies
There are many strategies available on the Internet, among which one can choose the work methodology that will be most convenient and comfortable for the trader. Some strategies are oriented towards beginners of the market, others, on the contrary, are recommended to professional investors who have extensive experience in the market. Beginner strategies do not have complicated settings, complex indicators are not used here, they are simple and understandable. Some complicated techniques are based on the signals of rare instruments and market analysis techniques, requiring more immersion in the subject. How to choose a reliable strategy when starting your Forex education from scratch? Professional traders advise to pay attention to classical trading techniques, the results of which have already been tested by more than one player, which means that they can be trusted. Studying a number of strategies will not only improve the understanding of the basics of the market, it will be the basis for developing an individual trading system, which would take into account the advantages and peculiarities of the trader.
- Using bonuses
Most forex brokers offer traders various promotions, special offers, bonuses. Bonuses can be welcome, holiday, special, for recommending a platform to a friend, for comments and reviews about the company. Bonuses are offered by a reliable broker not for the purpose of complicating the trader's work. In order to ensure that the use of the bonus does not become a real "gift" for the trader in the form of obligatory payoffs, etc., it is worth, before taking part in the bonus, to carefully read the terms of the provision of these funds. Of course, bonuses as an opportunity to increase your earnings are beneficial for the trader, but not when the rules dictate the processing of a huge number of transactions, etc., which would be unbearable even for a professional market player.
- Trading forex with a reliable broker
The choice of a broker providing access to the Forex market is an important task and one of the key elements of a player's success. It is the broker who provides the client with a lot of possibilities for work: functional terminal, convenient personal cabinet, set of assets for investments, types of expirations, trading methods, etc. Decent broker's service will be qualitative and ready for trading. Such broker is licensed, operates transparently, is open for communication and allows withdrawing funds without problems. On its website you can find a lot of information that will be useful in your work: reviews and forecasts of analysts, description of indicators, strategies, training lessons, bonuses, contests, etc. Such a company is reputable in the market and among its clients, and a large number of positive reviews of traders about it are available online, which is also important to read in order to make sure that the broker is honest.
Forex Market Basics
In order to steadily make money from the forex market, it is important to understand the basics of how it works. Let's talk about this further on.
Forex is an international financial market, where the commodity with which one makes money is currency. It is a round-the-clock market with a whole set of operations, rules, peculiarities. It provides a large turnover of funds during the day, it is large-scale, there are no geographical restrictions. Anyone can trade at this market, even without special education. The largest organizations (banks, dealers, etc.) as well as private traders work here. To enter the market and start investing in this or that instrument, it is important to register with the broker, which provides the opportunity to make money by trading currency pairs in the terminal.
The market itself functions according to a very simple rule: there is trading of one currency against another and if the trader buys the price that according to his forecasts should rise, he opens a long position (asc), but if he sells the price that should fall, he opens a short position (bid). The difference between forex and binary options is that there are fewer trading instruments available. Also, there is a different terminology and different operation principle in the terminal, though all deals are opened easily and simply. To analyze the market dynamics the same indicators, oscillators are used here, it is possible to work with different expirations (for example, high-speed trading, scalping, long-term investments, etc.), automatic robots, it is possible to conduct graphical, technical, functional type analysis of the dynamics of quotations.
A trader on the market must be able to use different orders correctly, use both market orders and limit orders, for example, must take into account the spreads, which are provided by each broker with different values, there are fixed and floating. To minimize risks and fix profits, it is important to learn how to correctly place stop-losses (fixing of profit, stopping losses in case the quotes start moving against the position) and take-profits (automatic closing of a position when the price reaches a level set by a trader). There is even an opinion that orders make the Forex market more attractive for traders than binary options trading opportunities, even though there are more parameters to place a deal.
Working in Forex, it is worth spending time and constant training, testing indicator signals and strategies on a broker's demo account, analyzing the market, etc. It is also important to Choose an honest forex brokerThe trader will be ready to make money with it. The players also use additional tools in their work: these are "live schedule", Economic calendarThe Forex market is a serious work, which requires training of the trader, his constant improvement, testing of new methods of analyzing the dynamics of quotations, etc. Forex is a serious work that requires trader's training, his constant improvement, testing new methods of analyzing the dynamics of quotations, etc. Only a comprehensive approach will help to achieve results.
Forex is one of the types of financial markets. A trader can also work with stock exchanges, binary options, etc. All markets have their differences, available trading styles and tools of work. However, there are factors which allow us to easily combine all these financial markets in the concept of "trading" and we will tell you about them below.
Trading is a modern way of making money by means of trading on financial markets. It is more correct to talk about it as Internet trading, because all the work takes place via the Internet: investing in different assets, researching the market, testing strategies. Internet is considered to be a part of our life long ago; it offers different possibilities to earn by means of remote work format. Trading is such type of work.
In the market, work begins when an Internet user interested in trading opportunities decides to try his hand at it. He chooses a broker, trades on a demo account, reads theoretical materials, tests strategies, etc. He has to study basic instruments, basic indicators, some classic strategies, get acquainted with various assets (currency pairs, options, indexes, cryptocurrencies, etc.), types of expirations. Then, after familiarization trading he transfers the money to the broker's account and starts real trading, gets money and withdraws them. A trader must find a style of trade which is comfortable for him and find the most convenient strategy which will guarantee him profit. Having successfully started trading he never stops studying useful literature and devoting time to demo trading and thinks about how to become a professional. Such experienced market players have their own trading strategy, their "arsenal" has a large number of working instruments that yield results, for example, in the long-term and medium-term trading.
Some brokers allow you to use Expert Advisors for Automated Income money. Honest platforms try to provide the client with the maximum possibilities for work: this includes the terminal, analytics, news reviews and forecasts, free signalsThe option of "social trading", a variety of assets, training programs, etc. Let us note here again that only a comprehensive approach to work in the market will allow a trader to become a professional, to get stable money from investing in financial markets.
Preparing for forex trading
Forex market, as we have already written in this material, is a serious work that requires preparation of the trader and the preparation must be qualitative. Successful start on Forex is, first of all, consistent acquaintance with its possibilities, study of notions, theory, following the advice of experienced traders: work properly on a demo account, trade in the real market with minimum amounts, test strategies before using them in trading, remember about money management, etc.
An important role should be given to demo trading, which will allow you to make sure of the quality of the platform service, get acquainted with the principles of forex trading, especially as it differs from binary options (it is important to remember about spreads, different orders, stop-losses, take-profits, etc.). Demo trading will help to study the terminal, the broker's service, to test the strategies without risking one's own money, and after that, being more confident in one's abilities, the player can proceed to earning money. One should not forget about the demo account, because in most cases it is valid for an indefinite period, and at any moment one can use it to test strategies, new approaches to market analysis, for example, with the help of graphical elements, patterns, etc.
Forex brokers bonuses - an excellent opportunity for a profitable start for a trader. By depositing your account, you can double it by getting a 100% welcome bonus. Modern companies also have a lot of such offers. The fact that some traders use bonuses for trading is not bad, because if you work with them consciously, you can really increase your income by times. It is important, even before the player starts to use the bonus, to study the conditions of its provision, because here one may encounter with unfavorable conditions of the broker's funds withdrawal. In any case, it is up to the trader to decide whether to use the bonus or not.
The serious factors of market player's success are selection of reliable broker, convenience and functionality of his terminal, increase of trading experience, search or development of author's working strategy, realization of risk management and money management rules. It's also necessary to pay attention to education, to read reviews of traders about brokers, thematic forums, books, articles, etc. A beginner in the Forex market, who is planning to succeed here, should remember about it.
- Newbie mistakes
Plunging into the world of Forex, most newcomers to the market make a number of mistakes, which prevent them from getting more money and developing in the field of trading. Thus, they get disappointed in Forex and write reviews saying that Forex is a scam and fraud. All these mistakes can also lead to loss of capital for the trader, so it is worth to be aware of them and to eliminate them at the very beginning. In this part of the article we will tell you about these mistakes.
- Trying to get an income right away
Having entered a Forex broker's platform for the first time, newbies immediately try to make money from trading. Without immersing themselves in its peculiarities, without understanding the terminology, without knowing how to trade consciously, they expect a huge income, they rather transfer their money to the broker's account and play mindlessly. In that case it's easy to be disappointed not only in Forex, but in any other market as well.
- Thoughtless trading
Some traders think that Forex is a gambling game. Once they get into the terminal they start trading on a real account trying to guess the dynamics of currencies without using any market analysis, indicators, market reviews, signals, etc. But this is just one of the popular misconceptions, which is better to abandon. You cannot make money by guessing currency movements, the market is dynamic, it has its own rules, its trends are changing and to predict them it is important to analyze the situation. The misunderstanding of this leads to the fact that there are a lot of comments in the network that Forex is a scam, that the broker has lost money.
- Trading the last of the money
Often beginners, starting unknowingly trading in the terminal, try to transfer all their money, savings, savings to the broker's account. They trade thoughtlessly, because Forex is a game for them, they lose all their money, then comes disappointment, etc. Of course, it is wrong: you should not transfer all your money into your account, especially if the trader has no experience in the market and trade with it. In addition, losing money is psychologically hard, so it is important to treat it carefully, especially if there is no stable source of their earnings yet.
- Incorrect work with the demo account
A free demo account becomes a useless option for a beginner, because it does not bring him money. After a quick look at its capabilities, even after making a few trades, he immediately switches to a real account. This is not the right way to work with a demo account. It offers a serious trader a lot of opportunities: he can learn the principles of the market without risking his capital, conduct his first trades, develop the improvement of performance indicators, use indicators, oscillators, strategies, broker signals, etc. A closer look at the broker's platform will also help you see the quality of the broker's services, the serviceability of the terminal and its individual options. You can ask the support team questions and determine how professional they are, whether bonuses are available, whether the broker keeps the promises to the client, etc. Already on a demo account, analytics, training programs, personal cabinet, etc. are available. By consciously working with this tool, the player can feel more confident in real trading and reach a stable income faster.
- Choice of forex broker by bonus
And this is also one of the popular mistakes of traders, which allows, when choosing a broker to work with, to focus only on the benefit of its bonus. The fact is that the Forex market is characterized by great competition for the client, so brokers are forced to think up more and more new promotions, bonuses, to attract him different benefits. Next to honest companies there are actively working with fraudulent brokers offering brighter and more profitable offers, attracting a huge audience of novice traders. Of course, not all players initially understand that they can be cheated here, and only after transferring money to the account of such a company, starting trading, they are no longer able to withdraw their earnings, to contact the manager of the company. It becomes clear that this is a scam and deception. In fact, the choice of a platform for trading is a much more complicated process: it is important to study its work experience, license, reputation, positive feedback from traders, a training account, analytics, training courses, etc. This approach is more used by professionals who are aware of the existence of scammers in the market, looking for a proven company for a stable income.
- Trading without knowledge of the market
Newcomers to the market, after registering with a broker and transferring their money to the account, expecting an immediate income, immediately start trading. They bet at random in the system trying to guess the price movement and they do not even realize that all this will only lead to disappointment: the dynamics of assets movement is influenced by a number of factors and to predict something it is necessary to analyze them and use different tools for that. Only after losing money they start thinking about a serious approach to trading, study the theory, analysis rules etc. - And this is a real job where you have to take into account many factors.
In this part of the material we told you about some mistakes made by beginners in trading. When starting to trade on Forex, it is important to understand that the market works according to its own laws and that it is possible to earn money only with a thoughtful approach.
Technical and fundamental analysis
When trading on Forex, it is important to pay attention to the study of market dynamics, because it directly affects the results of such a difficult work. Two types of analysis are popular among traders - technical and fundamental. Both of them have a number of differences, knowing about which a player can make the best use of them and improve his profitability. If they are used correctly, it is easy to achieve stable earnings.
Technical analysis is an analysis of the dynamics of assets in which "technical means" of the market are used to find signals: indicators, oscillators, strategies, candlesticks, patterns, etc. If you look at the chart of an asset, you can immediately see the movement of quotes, which initially seems chaotic, but it is not. The dynamics of currency movements depends on various factors, which is what this type of analysis does. In this approach, a decision about the future dynamics of an asset is made based on its past changes. For this purpose different parameters are analyzed: analysis of time intervals, trading volumes, etc.
Indicators allow you to get some average value of the price, oscillators are used when the value moves within the "sideways". Popular on the market are RSI, MACD, Momentum, Stochastics, ADX etc. By adding such tools to the chart, you can analyze their signals, observe their dynamics, track overbought/oversold conditions, downtrends/upward trends, etc., place bets and make a profit. There are a lot of different trading systems available, of which a trader will always find something comfortable for himself: these are indicator strategies, techniques based on patterns, candlestick patterns, indicator signals, oscillators, etc. The advantage of such analysis is that it is possible to work with both fast and long term deals.
Fundamental analysis of the market can also be considered one of the common types of situation analysis. It can simplify trading and increase the amount of capital in the account. This type of analysis predicts the dynamics of currencies with the help of financial indicators of organizations, assessing the influence of news background on the rise or fall in the value of currencies. It uses news, "hot" reports, statements of large organizations, heads of central banks. It is also important to take into account news related to changes in economic indicators of countries: for example, business activity index, sales volumes, unemployment rate, economy sector reports, key rate data. The data of macroeconomics of states and general economic background between them is also used. All these factors are able to change the dynamics of an asset, provoke its active movement and, knowing it, you can make money on it by correctly placing a deal.
Of course, fundamental analysis is used less often by novice traders and more by professional investors for investments in long-term deals, although it can be quite good in medium-term and intraday investments, because it takes more time and requires serious preparation. It will not work if the trader prefers fast trading, because you have to make quick decisions and he will not have time to analyze the market. Most often traders work with news strategies, economic calendar.
Choosing the Right Forex Broker
Forex broker is the most important element between a trader and the market, which provides an opportunity to enter the market at any convenient time for a speculator to start trading. It is the broker which provides the client with the terminal, publishes a lot of useful information which helps the trader to make a decision about the bet and earn money. The right choice of a Forex broker is a serious problem for a trader, because there are a lot of cheating brokers on the market which are interested in losing money, "losing" the deposit.
Top 3 best forex brokers in our opinion
|Broker||Bonuses||Open an account|
Especially often beginners, who are unfamiliar with this market, poorly versed in it and make a choice of a broker in favor of the company, which will offer them the best bonuses, higher profitability, encounter frauds and scams. After transferring the money to the company's platform, newbies begin to trade and lose their funds, when withdrawing they encounter the fact that it is impossible to conduct these operations, because the broker begins to "throw a spanner in the wheel", of which they were not previously aware (additional verification, conditions of bonus processing, etc.). Here it is important to understand the following: before choosing a decent and honest broker, it is important to study the actual rating of the forex brokers, read reviews. Of course, a professional forex investor will behave differently when choosing a broker, will pay close attention to several factors at once:
- Work experience, reputation
The trader will be more reliable to cooperate with such companies that have extensive experience in the market, have an active position (for example, being a sponsor of some events), have a positive reputation and authority in the market. Serious organizations have passed a long way of development, are well aware of the fair fight for the client and value each trader on the platform. Such companies are stable, successful, have a large base of traders.
- The availability of a broker's license
Every serious broker has a license to operate in the field of financial markets, sometimes more than one. The presence of this document makes trading protected for clients of the platform, proves its honesty and legality. Also, in case of any problems, the trader can always write a letter or complaint to the regulator, which will help to resolve the situation in a fair way.
- Demo account
The option of demo trading is also a factor that distinguishes a professional market player from scammers. The opportunity to study the functionality of the broker's platform, to conduct the first transactions here with virtual money - this largely confirms that we are not a scam or a scam hiding an allegedly workable platform, but an honest, open and transparent company, which has nothing to "hide" from a potential client. Being a simulator of trade on a real account, a demo account is simply invaluable for a professional trader: here you can explore the functionality of the broker's platform, try trading in it, test strategies and other tools, think over and work out your strategy.
- Availability of a functional terminal
The main work of the trader takes place in the trading terminal of the broker, so it is important to understand how functional, convenient and simple it is. Besides, professionals of Forex market pay attention to the fact whether there are no failures in its work, how quickly all operations are performed here, whether the quotes of assets are accurate, what tools are available here: indicators, graphic elements, types of expiration, etc. - All this affects the possibilities of market analysis, the application of a particular strategy.
- An informative website
When choosing a reliable Forex broker, the company's website is also of great importance. This resource should contain a lot of useful information about the company, its licenses, bonuses, promotions. The website is a source of up-to-date market analytics, news, most often large companies publish professional market reviews, educational articles and video lessons, strategies, signals, information on quotations. It is more reliable and interesting to work with such brokers, because they provide different possibilities for traders to make it convenient and comfortable for them to cooperate with them.
- Availability of bonuses
Bonuses, although not always, but still are a desirable attribute of Forex trading, so it is important for the broker to develop special offers, contests and promotions for their clients. It is also more profitable to work with such company. However, when choosing a bonus, it is important to understand that there are rules for its processing and sometimes it is better not to accept any bonuses from the broker at all, because their conditions are unprofitable and even impossible not only for a new trader, but even for a market professional.
- Availability of professional support
One of the factors to determine how prepared the broker himself is for the market is the quality of his technical service. When investing your money in the platform, it is important to trust the company, to see it as the market leader. If tech support works slowly, incorrectly and incorrectly advises clients, it affects the result of their work.
- Traders' reviews
Of course, before choosing a reliable forex broker, it is important to study reviews about it online and if there are many negative reviews, and in most ratings the broker is marked as a scam and a scam, it is better not to work with it and not to transfer money to its platform, otherwise you will have to say goodbye to them. Not all brokers have only positive customer reviews and it's normal when a broker is criticized. Another thing is that some companies try to listen to their clients, aiming to provide them with a really high-quality service.
Trading strategies: what they are and what they are
For stable earnings on the Forex market, a trader needs a trading strategy, most often more than one. Besides, the result of trader's work will depend on the effectiveness of the chosen strategy. One of the problems of beginning traders is how to choose the strategy, which would bring the big stable earnings. Thus it is important to understand that, unlike trading in the binary options market, forex offers more functional possibilities for work: it is the use of stop-losses, take-profits, etc.
You can find many different forex strategies on the net: indicator strategies, for beginners, for professionals, scalping, long-term strategies, etc. We bring to your attention the list of the best forex trading strategies, which show themselves well when trading on this market.
- Moving averages
This is one of the popular trading systems among beginners. Among its advantages: the ability to trade any asset, easy to use, quick search for signals on the chart. It also works well with different expirations. For example, you can set the following parameters for trading: time frame: W1 (trend detection), H4 (entry into transactions). At the same time, high-speed trading is more dangerous for a trader, as there are a lot of false signals. On the weekly chart there are 2 moving averages: simple (5) and exponential (21). If this chart shows a downtrend, then sales are made on the four-hour chart; if the trader sees an uptrend here, then purchases are made on the H4 timeframe.
This is also a simple trading strategy, which is used more by newcomers to the market. Its peculiarity is that no indicators are used here at all. It will allow the trader to get the maximum income. The work takes place on daily timeframes, it is possible to trade any trending currency pairs.
This simple strategy works as follows: you must wait for the signal combination of Japanese candles (to carry out the purchase transaction, it is necessary to wait for the appearance of a bear candle, then - two bullish, with the body of the second such candle should close above the maximum of the first). It is important to set a pending order to purchase a contract 5 points higher than the maximum of the second bullish candle, stop-loss is placed at the minimum of the candle, take-profit - at a distance of 500 points from the point of entry into the transaction. After the price has passed 200 points, the transaction should be transferred to Breakeven and activate the trailing stop with a step of 50 points. If in 4 days trades will finish with a loss, it is necessary to close them on the market.
- "The Beginning."
An interesting strategy that will allow the trader to work in the market constantly, while studying the analytics minimally. It will allow daily opening a deal at the beginning of the London session, spending about five minutes to work. This is a simple system of work, which takes place on the M30 time frame. At 10:00 Moscow time, after waiting for the London session to start, the trader should wait for the formation of the first thirty-minute candle and place two pending orders: 1 - to buy a few points above the maximum, 2 - to implement the deal below the minimum. Stop-losses are placed on the extremums of this candle so that when a stop-loss on one order triggers, it leads to the activation of the opposite pending order. Here it is not necessary to expose take-profits, however it is important to close all transactions at the end of the session regardless of their profitability, delete all orders. If positions are not closed in a timely manner, it can lead to significant losses.
It is also a simple and accessible strategy for beginners, which involves trading on the breakout or rebound of levels. To start working, it is important to find zones on the price chart, from which the line bounced more than once, mark them by horizontal linesThe probability of a new bounce is high. Any currency pairs, M5 or M15 time frame will be suitable for trading. If the line has broken through a horizontal level, there will be a breakdown of the level - this will cause it to lose strength.
If there was a rebound from the level and fixation of the price behind it, it is necessary to enter the transaction in the market way in the direction of the rebound. If there was a breakout, it is worth waiting for a pullback, enter the market at a better price or in the direction of the breakout. As a rule, a Stop Loss is placed below the level, Take Profit - at the closest level. It is important to remember that if the profit has reached 40 points, you shouldn't trade, and you shouldn't trade when the news is out.
- "Three Candles."
This strategy resembles the "Juicer", but you can use it with different timeframes, one-minute, five-minute, etc., shows itself perfectly in scalping. When starting work on the strategy, it is important to remember the following rules: the first candle is the one whose high or low stands out from the other bars; the high or low of the second candle is higher than the previous one, it may be lower than it; the third candle is the income for the trader. Entry into the transaction occurs after the second candle has closed, exit - when the third candle has closed. Stop Loss is located at the opposite level of the second candle. Here, it is important to pay attention to the size of the candle: If the first candle has a small body size, you should not trade; you must skip the signals, and if the body size of the second candle is very large. In addition, the strategy can not trade thirty minutes before and thirty minutes after the release of important news.
Strategies for forex trading by time
All strategies with which the trader works in the forex market, and differ in the use of different expiration, the time at the end of which the transaction ends and the player knows the result of the work. Depending on the type of expiration, trading systems can be:
- Intraday trading
Such forex strategies are also fast, although they offer more opportunities to study the dynamics of the asset. They are simple to set up and require a minimum of time to analyze the market. Such systems are aimed at making a large number of deals during the trading session. In such a high-speed trading style on the forex market, popular among scalpers, it is also possible to conclude an unlimited number of deals. Having studied the dynamics of an asset, indicator signals and set the risk-limiting orders, one can gain a good profit. However, it is important to remember the risks of high-speed trading: market "noises", the need to analyze the market, know how to work correctly with orders, etc.
- Strategies designed for a period of 1 day to 1 month
These strategies are more stable and moderate than the ones we described earlier. With calm trading, you can use a wide range of tools and take the time to analyze the market in more detail. They are popular with professional players who need to make a stable income from trading. It is important to be able to use technical and fundamental analysis, different strategies and indicators. All this will allow taking a decision about the dynamics of currency pairs, setting stop-losses and take-profits, opening deals and gaining a stable income. Such strategies also have some disadvantages, such as long waiting for the result of a deal, the need for more substantial investments in trading, the large role of orders, which will either make a profit or incur expenses, the need for basic knowledge of technical and fundamental market analysis, etc.
- Strategies for the period from 1 month to 1 year
These long-term strategies are very interesting to those traders who are interested in receiving stable earnings from the forex market. It is important to remember that they are not offered by every forex broker, they are less popular with the main audience of market players, because extensive trading experience is required. In order to work successfully with long-term investments it is important to be able to analyze the market in different ways (fundamental factors, indicator and oscillator signals). In addition, it will require more money, which the investor does not need in the near future. The result of such trading will also have to wait longer. However, there are enough advantages: low risks of losses, different ways of market forecasting, stable income. Such trades are made by those traders who have experience in in-depth market analysis, who have access to all available platform tools.
Popular forex trading strategies
There are such strategies in Forex, which are constantly used by different market players, show stable earnings and are effective. These are popular strategies, effective and working trading systems that are always in the "arsenal" of a professional trader. If a beginner does not have his own comfortable and convenient strategies, he can use such popular techniques, which can be fairly called and Best Forex Strategies.
This weekly candlestick trading system managed to prove itself perfectly with both experienced traders and beginners. To work it is important to set the time frame W1 in the platform, then choose 14 pairs of currencies, and analyze the size of their candlesticks. Next, you need to select the longest distance between the opening and closing candlesticks during the week. In this case, if the candle was initially a bearish one, the position will be long, if it is bullish, then it will be short. Do not forget about the parameters of Stop Loss - it is about 100-140 points, Take Profit - 50-70 points. Having waited until the middle of the week, it is necessary to close the order, in case it has not been closed earlier. Then it is necessary to wait again for the beginning of a week, to repeat all settings on a platform and to continue trade.
Such strategies are of interest to traders and are used by them all the time regardless of their experience in the market. Scalping allows for unlimited profits during 2-3 hours of intensive trading. Such systems of work are also relevant in a flat market, which can actually be used to make money. However, some traders know that the "sideways" market on the timeframe is an absolute trend on small intervals, which means that they can trade on M5-M15 intervals at any time regardless of the situation. Scalping on forex is a popular strategy which will allow to conclude about 1000 deals and it is successful also because traders work competently with the leverage.
- Trading on the news
This is one of the simple and therefore popular Forex trading systems. To work traders study the news background, try to predict the dynamics of currencies, go to the service of the economic calendar, read news reports of companies, government agencies, central banks of the countries. Here pending orders are also used, which simplifies trading, because there is no need to sit in front of the TV all the time waiting for the news to come. Traders also use analytics from leading market speakers, such as Nikolai Korzhenevsky and Artem Deyev.
- Strategy by "Cayman" indicator
Most traders are well aware that the opinion of the crowd in the market can be wrong. Following it, it's easy to lose your money. Another thing is if one uses a sentiment indicator, which analyzes the opinion of the majority of market participants regarding the dynamics of a particular currency pair. It often helps to use the strategy where trader goes "against the crowd", against the majority opinion, it is based on the opinion that pessimism and optimism of traders is not eternal, the market is waiting for reversal in any case. The mood indicator will offer in this case only to determine the current trends - bearish or bullish moods and choose the moment to open the deal. Often experienced traders recommend for such work the "Cayman" indicator, which was developed by analysts of the leading market broker, AMarkets. It is easy to work with, it allows you to easily assess market trends and identify its reversals in time.
- Win-win forex strategy - what is it?
No trader wants to be stressed and lose his money. But there is no one hundred percent win-win strategy in the market, otherwise everything would be very simple. However, starting forex trading with popular, well-established systems, you can work on creating your own working methodology, which will give you a stable profit. There is no need to waste time looking for a winning forex strategy, it is worth improving your experience, improve your knowledge and develop a single strategy, which will be a win-win for a particular trader.
What training courses are available and does a novice trader need them?
Almost every beginner on the Forex market sooner or later starts thinking about how to become a professional, improve their experience, undergo serious training in order to feel better while working. Training is an opportunity to get immersed into the market opportunities, to get prepared for real market trading conditions. Having understood this, traders begin to search for training courses in Forex trading and here another difficulty is waiting for them - how to find the course that is right for them. There are various courses on the Internet: free of charge, paid courses, programs for beginners, programs for experienced players, market basics courses or, on the contrary, immersion in working with particular type of instruments, strategies, etc. The question of the quality of training, its duration, the need for practice, etc. is also relevant here. In this part of the article we will talk about the difference between paid courses and free ones.
The Internet offers a large number of various paid training courses in forex trading. Most of them are complex programs, which include not only market theory, but also practice, analysis of strategies and mistakes, manager's assistance, constant feedback, trader's support after the training for some time, etc. These services are provided, of course, first of all by professional organizations. In this format it is convenient to work, it is more productive and profitable for the trader, who can, during the time of training, get advice from professional analysts and players, actively practice, work on his mistakes. The price for the courses may be different in different companies, so you can find the most convenient variant. Brokers and successful Forex traders are also able to offer such courses for a fee. We offer you a selection of paid training courses in forex trading, which are available online right now.
- Learning to trade forex with Hamilton
The Hamilton Company, which is a European broker, provides training services in forex trading, and there is a free basic course, which teaches the basics of theory, tools, and money management issues. Having passed the course, according to the project's site, the trader will start earning money in 14 days. The course teachers are experienced investors, masters, who have reached the heights of Forex trading. The following courses will be of interest: "Technical and Fundamental Analysis of Financial Markets" (advanced course), "Building Trading Systems and Tactics" (professional course), "Master Class" (expert course). At the same time, the prices are not indicated here and there is no detailed description of the programs. Training can be both distant (remote format), and in the company's office.
Tuition: on request
- Forex trading training with FIBO Group Academy
FIBO Group Academy offers a professional approach to training on the Forex market. Different courses are available here, aimed at experienced and novice traders. Training is conducted by market specialists and analysts who have achieved success in investing money in Forex. The peculiarity of the courses is complex approach, skilful combination of theory and practical studies, which allows a participant of the Academy to get prepared to real trading in the most effective way. It also offers seminars, master-classes, congresses, etc. Among other offers for newbies we would like to mark out video course "Complex trader's package" available from the website for 299$. This includes 22 video lessons, an advisor, and a trading account worth 300$. Also available to beginners are the following courses: "Three Touch", "Trading with Technical Indicators", "Level System, or Who Trades the Market?". Professionals can take advantage of courses, which will help to improve their trading experience: "Fundamental analysis and economic calendar reading", "Complex technical analysis", "Trading signals - the way to successful investing", etc. The Academy offers seminars, webinars, consultations etc.
Tuition: from 199$
- Learning to trade forex with Trader Assist
An interesting variant of training courses on Forex is offered in the service Trader Assist, the founder of which is a professional trader Yaroslav Wise. The company employs professional investors and analysts. The advantage of courses - a comprehensive approach, the maximum materials for work, the possibility of serious training, which includes: basic theory, practice, trading even while passing the course: it provides analytics, Dow Jonew Newswires, signals, books, webinars, support from analytics company, communication in chat, video lessons, articles and so on. Such an approach will allow traders to start earning money even before the end of the course, improve their experience and knowledge, and spend much less time and money on training than if they were to learn on their own and make mistakes.
Tuition: from 46 USD
- Training in forex trading with the Phoenix Institute
Traders may be interested in the training courses offered by the Phoenix Institute of Trading and Investment, the only scientific and practical center in our country that includes analysts, teachers and market practitioners. It also says that the trader is a profession of the future, which will be more in demand. By completing training at the institute, it is possible to join the ranks of professional traders. Traders are offered several courses which may be taken remotely or in the office: START-UP, FOCUS GROUP, INTENSIVE, MASTER GROUP. Here again, the training is based on a comprehensive approach: it is a combination of theory and practical exercises, work with a tutor, error analysis, etc. Also within the training there are master classes, seminars, etc. On the site you can study detailed course programs, buy them and start training.
Cost of training: from 1500 USD
- Learning Forex Trading with Alexander Gerchik
Alexander Gerchik is a trading guru whose name is known by professional traders. Today thousands of students are actively adopting Alexander Mikhailovich's experience and trading in the black. He is the only trainer who invests personal funds in his students' trading. According to Mojo Wall Street Warriors, Alexander Gerchik is recognized as the safest trader with almost no losing days in the daily trading sector. There are many training courses available on his site, aimed at different audience of players: beginners, professionals. They offer both online and traditional training programs, seminars, workshops, master classes, and the opportunity to become a member of the private club. Among different training programs we would like to mention the following: "Trading from A to Z 2.0", "Wolves of Wall Street", "Active Trader Course", "Real-time Trading for Advanced Traders", etc.
Depending on the type of course, traders are provided with: market theory, practical lessons, personal cabinet with access to training materials, a closed support group on Facebook, feedback from the curator on homework and trades, analytical reviews by Alexander Gerchik, etc.
Tuition: 897€ (basic course), 1,497€ (advanced course)
In addition, there are also free training courses on the Internet to learn how to trade in the forex market. They are more attractive for traders, which is understandable, because you do not have to pay your own money for them. But to what extent the information provided in such programs will be valuable and really work? It is important to understand that no one will share such information for free. So there is a high probability that these courses are a scam, a fraud and a swindle, that the trader training will appear to be just an interested person, who wants to make money without teaching his listeners anything useful. Also, such a trader may turn out to be an agent for attracting naive players to a dubious project, who will continue to deceive them further, promising them mountains of profits.
Cooperating with such traders, the player can lose money, using an allegedly effective tool. At the same time, in the case of large losses, which resulted in such a strategy, he will be denied a refund. Using free courses, it is worth realizing that they will never guarantee 100% results. It is better to avoid such programs altogether, because the information they tell the trader is already available on the Internet. We offer you examples of free forex education courses available to traders on the net today.
- Learning Forex Trading with the FinWiki Project
- Training in forex trading with the "Center for Modern Investment Technologies"
The task of this company is training traders with the author's methodology: these are programs for beginners and refresher courses for experienced players. The courses are aimed at in-depth study of forex market opportunities, attention is paid not only to theory, but also to practical exercises. There are both paid courses and the free basic course of Forex trading, which is oriented to the beginners in trading and allows them to plunge into the world of finance and to get ready for trading. Course participants will learn what forex is, open an account with a broker, get acquainted with effective strategies, types of analysis, etc.
- Learning to trade forex in Alex Grant's Closed Club
Free Master-class in Alex Grant's Closed Club of Successful Traders will allow you to learn about the methods and secrets of profitable forex trading. The event is addressed to both beginners and experienced traders and will introduce them to such topics as: "How to use news for profitable trading?", "How to achieve fast results in trading even if you are a complete beginner?", "How to see the sniper points to enter a position?", etc. Traders are free to participate in the event and have the opportunity to join Alex Grant's club (the price of the master class is 450 USD).
- Learning to trade forex with the blog WebmasterMaksim.ru
The project's website is dedicated to trading and publishes news, signals, many tools for working on Forex, useful articles, etc. In addition, the author's free Forex trading course is available, but in order to get it you will need to register with 13 brokers using affiliate links, indicate a special code, repost the page in social networks and send the links to the course author for verification. After that participants get a secret e-mail, through which they will communicate and send letters. Traders will be able to get acquainted with possibilities of automatic trading by means of Expert Advisors and robots. As "gingerbread", trainees will receive the adviser, copying transactions, will get acquainted with free advisors, will see how trading by advisors occurs, etc.
How not to lose money trading forex?
When trading on the Forex market, it is important to treat this activity as work, to study different instruments consciously, to test strategies on a demo account, to think over forecasts about the dynamics of assets. You must realize that making wrong forecasts will lead to losing money. In addition there are many different "stumbling blocks" in the market which can also lead to a loss of capital and we will speak about them in this part of our material.
- "Forex broker's User Agreement
The "User Agreement" is an important document, which the trader simply must know about and which is worth studying even before he deposits his funds into the broker's account and starts trading here to make money. Such document has another name, but it is necessarily located on the broker's website and must be read by each member of the company's platform. But what is there in it that might alert the trader? "Agreement" contains a number of important information about how the work on the platform takes place, what are the responsibilities of the broker offering trading services to the client, what is his responsibility, how he will react to certain situations that have occurred in the market, etc. Also there is a lot of information about what are the rights and obligations of the client of the company, who uses the software, how the consideration of applications of the trader occurs, in what situations (terminal failure, force-majeure, etc.) the broker will not be liable to him, and therefore, will not return the lost funds to him. In addition, this document is updated and it is the trader's responsibility to monitor such changes.
The broker, making a decision on any problem, for example, in case of force majeure, technical failures, loss of money as a result of not closed transaction in time, is guided by the provisions of the "Agreement". And if the client of the company does not read its provisions, the decision on his complaints is taken by the rules of this document. Often there are clauses in the "Agreement" that will not "work" in the trader's favor which only complicates the work with the company. In our reviews of forex brokers we also do reviews of the company's "Agreement", so it is important to read them in order to be aware of what awaits you on the platform.
- Study the terms and conditions of bonuses
All broker bonuses, special offers and promotions have rules for working with them. It is important to get acquainted with them before the player decides to take part in these offers. It is worth remembering that there is always a probability that in such conditions there will be unfavorable or unrealizable conditions of bonus money withdrawal, especially if the trader has little trading experience. Often such conditions are difficult even for professionals, who advise to avoid bonuses, otherwise it is very easy to lose both the broker's money and your own funds. In the rules for using the bonus you can learn about its terms, peculiarities of working off these funds, peculiarities of withdrawal of money from the platform in case the earnings can be withdrawn at all, etc.
- Trade by strategy
As we've written before, forex trading is not a game or roulette. It's easy to lose all your money here without even noticing it. Consciously working with strategies, indicators, different types of analysis, you can see the signals of asset dynamics, which will allow you to make a correct forecast and get the long-awaited income. Besides, unlike in the binary options market, Forex allows the use of stop-loss and take-profit that will help to fix profit and limit losses in case of incorrect trading results. Therefore, it is important to set these parameters correctly so as not to lose all of your money.
- Carefully study the forex broker
When searching for a reliable and honest forex broker, it is important not to "rush" to the company that offers the most profitable bonus (which will turn out to be a "trap" for the trader), but to carefully study its reputation, work experience, reputation in the market, licenses, positive reviews of traders, etc. Otherwise, there is a high probability of meeting with a scammer, who will fraudulently get the user's money and disappear.
- If the money needs to be paid back, a chargeback will help
Often brokers turn out to be swindlers and after receiving the money they disappear. There are many situations when by their actions brokers prevent the withdrawal of money (i.e. every time they find new excuses to refuse the client in the withdrawal). These are common situations on the market which make traders feel cheated, unprotected, especially if the broker does not have a license and there is nowhere to turn for help.
However, there is a way out in such situations - it is chargeback procedure. Companies providing chargeback services will help the trader to get his money back and get justice in the matter resolved. Chargeback is also possible in other situations: if any Internet user was cheated, lost money using the services of sites, projects, if he received services or goods of poor quality, etc. What is a chargeback? It is a popular payment cancellation and refund procedure which is based on a number of international payment system rules which are obligatory for the banks cooperating with payment systems. They accept the terms of IPS (International Payment System), the payment system, and are obliged to follow them, acting as its member.
To speed up the return of their money, the trader will have to follow exactly the recommendations of the company, which must collect all the documentation, prepare the evidence base and start working with the bank. The faster the trader will contact the companyThe more likely it will be that the trader will get his money back.
- Psychology of forex trading
When trading on Forex, it is necessary to study market theory, get acquainted with the main trading tools, improve your experience, pass training courses, but it is also necessary to remember about the psychological component of such work, so there is a concept "psychology of trading" which studies trader's emotions, helps to control them and eliminate fears, self-doubt, etc. It is already proved that such emotions interfere with trading on the market, contribute to the reduction of attention, which leads to the loss of money. It's worth to remember about the psychology of trading in order to conquer all those emotions which prevent the player to concentrate on the process of trading and achieve good results, using its basics. Next, let's talk about the rules of trading psychology.
- You can't be afraid to trade
Trading on the Forex market, some players are often afraid to start trading, because with the transition to a real brokerage account they have a fear of losing money, which drowns out the "voice of reason" and everything - the trader will lose focus, attitude, will make mistakes. In this case, it is important for the player to understand that losses occur even for professionals with extensive trading experience. This should not scare and stop them, on the contrary, it should only motivate them to improve their experience in market analysis and trading. The trader's task is to make sure that there are less losses than profits.
- You can't be greedy
When trading on the Forex market, you should also understand that all attempts to earn as much money as possible will not lead to a good result. Mindlessly trading and concluding deals, it is difficult to analyze the market correctly, while chasing the result one loses his mind and attention. Thus, the trader does not notice the current situation on the market, does not have time to analyze the state of his account. Such trading will stop only when a message appears telling the trader that it is necessary to replenish the account in order to continue trading. When starting trading, it is important to set a correct goal: not to earn more money, but to obtain a stable profit. It is better to trade calmly, to study the market thoroughly, not to lose your mindset.
- You can't turn on the excitement
Again, it should be noted that Forex is not a game of chance or a casino where you have to guess the outcome of a bet. Forex is a serious job, in which both expenses and profits await the trader. Playing is for fun; trading is work, a source of real money earning. And for this earnings to be permanent, one will have to work hard, study materials, test strategies. In addition, you should not make another mistake of traders - to trade without a reason. In order to make predictions about the movement of quotations, you need analytics, study of the history of asset dynamics, and a trading plan.
- Patience should not be forgotten
Forex is not just about making money, you need market knowledge and trading experience. Trading does not tolerate rash decisions, that's why patience is an important quality which sobered up the trader, it makes him work, analyze the dynamics of assets more thoroughly, use different instruments and make a conscious decision. Impatience is more common among newbies as they are afraid of not being able to enter the market in time, of wrong orders, etc. They are less focused on work, inattentive, in a hurry to manage everything. It is important to learn to be patient, work carefully and consciously, then success will come to the trader.
- You can't win back.
Another important mistake of the trader, which can cost him the loss of money, is trying to win back in case he loses. Making the decision to get his money back anyway, he is already less focused, his emotional background is unstable, there is no focus. He begins to rush to trade one trade after another and ends up losing money. Of course, one can understand the desire to get even and correct the situation, but after unsuccessful trades, most likely he will lose, because the trader is not able to "manage" the situation. A simple rule of "three trades" popular in trading can help him here: according to which after three unsuccessful trades it is better to leave the market and do other things than to trade and lose all his money.
Literature for Learning
Traders who would like to become market professionals earning stable income need to pay a lot of attention to training, testing strategies, improving experience, etc. Here it's almost impossible to do without studying professional literature - experienced traders will agree with that. Books about trading contain a lot of useful information from professional players of the market: it is the theory of the market, analysis of analytical instruments, there is also working advice of traders, success stories and etc. All this is shared with the reader by famous traders who have become trading legends. Below we will tell you about the books on trading that are worth reading for a market player.
- Anna Ehrlich "Technical Analysis of Commodity and Financial Markets"
This useful book tells about different methods of technical analysis, which can be used in the commodities market, stock market, as well as in Forex, etc. It is interesting that the book is addressed primarily to the Russian trader. Described here methods of market analysis can be used both individually and together. The author of the work will teach the player to analyze the situation on the forex market and accurately predict the trend change.
- Vyacheslav Taran "It's easy to play the stock market
This interesting work will be especially interesting to those traders who believe that trading should bring not only earnings, but also be pleasant. It offers a non-standard way to trading, the work that will allow you to avoid many restrictions, to change your lifestyle.
- Michael Brett "How to Read Financial Information"
This useful book will tell the reader that information on the market is assessed differently by the players, that it is influenced by many factors: trading experience and market analysis, individual characteristics of traders. In this case it is important for each trader to find those tools for work that will allow him to trade in the market as correctly as possible, will help to interpret the state of the market in the same way. The author of the book also mentions a number of peculiarities of modern mass media that try to mislead traders with their materials. The book will be equally useful to read for experienced and novice traders.
- John Keynes, "General Theory of Employment, Interest and Money
This book is rightfully considered one of the main works of D. Keynes, because it seriously influenced the development of the economies of nations. It is thanks to this work that the name of John Keynes is inscribed in the history of trading as an outstanding philosopher and market economist. It is in this work the author for the first time introduces the concept of "multiplier", here also appeared the idea of using regulators in the market, allowing to prevent the crisis in the state and come out of it without losses. Some of the ideas of the book became the basis of state economic management, and the term "Keynesianism" emerged. This work is a must-read for all market players.
- Р. Prekter and A. Frost "Elliott Wave Principle".
"Elliott Wave Principle" is a classic work on market theory, relevant and useful for traders today. It was after the appearance of this work that traders began to actively use Elliott's theory in trading, which leads them to positive results. Ralph Nelson Elliott carefully studied the regularities of the market and discovered that prices always change according to recognizable patterns. Today the wave principle of market analysis is one of effective methods of price dynamics analysis which can improve the results of traders.
- Р. Dealer Strategies in Electronic Trading
Another interesting work for traders who would like to trade effectively during the day, to engage in daytrading. The book is equally easy to read for beginners and experienced players. Trading today is one of the desirable professions for a person, which can bring him a decent income from investing in different markets. But, apart from high earnings, losses are also possible here. Then there is a fair question: how to avoid losses? To improve the performance, optimize the ability to analyze the market, etc. In general, the answer to this question can be found in the book.
- Jesse Livermore "How to Trade Stocks"
This is one of the legendary market publications devoted to trading, which will be useful to anyone involved in it, regardless of their experience. As you know, Jesse Livermore built a brilliant career as a trader, earning millions by investing money in stocks. One of his secrets to success is that you have to constantly watch the market. In addition, he never relied on luck to work, thinking through all his trades. For about 40 years he was a trader and developed the rules and strategies that made him successful. You can read about all this in his book.
Professional forex traders as one of the secrets of their success call the use of risk management rules in their work. Risk management is a term used to describe the rules of risk management, which are expected by a player while working in the market: loss of funds in the account, fears, greed, desire to win back money, etc. Using risk-management rules in his work, a trader can prevent loss of money, will feel more confident and will start to trade successfully on the market. Not knowing the basics of risk management is one of the most common mistakes of traders because it is very difficult to keep track of account balance and react properly to losses. Below we will tell you about the basic rules of risk management that allow traders to achieve decent results on the Forex market.
- Minimum amount on deposit
If a trader is just starting out in the market, it is not a good idea to transfer all the money into the account. Because he does not yet have trading experience, does not have a strategy, does not know how to track the balance of the deposit and is unlikely to be able to stop trading, it is better not to transfer large amounts of money to the account. It is worth to allocate a limit of money with which he can trade without problems, which he can lose and not feel at the same time serious losses.
- No more than 5% for trade
When trading in the forex market, it is also not worth investing more than 5-30% of the capital on the deposit into one transaction. The trader is not immune to possible failure, especially if he is just starting out. But if his transaction ended with a loss, he will be able to win back the money and come out in the black. In addition, losses of small amounts of money do not affect the size of the deposit, it will not affect the trader's decision to leave the market altogether just because he was disappointed in it.
- Minimum number of assets to trade
Also, newbies should know another rule - it is not recommended for them to work with several assets at once, because in order to make a correct forecast it is necessary to understand their features, study the history of their dynamics, etc. Such analysis is usually performed by more experienced market players, but not by beginners, who can make wrong forecasts, do not track the balance in time and lose all funds in the pursuit of income. It is worth to trade 1-3 assets and only after a confident work with them is built, you can look at other instruments for investment, but in this case the player will already have experience in trading, working with strategies, etc.
- Trading without emotion
When trading forex, it is important to have the right mindset for it, because trading is a job that requires focus, attention, quick reaction time, etc. It will be very difficult to follow the market mood if the player is distracted, if he is thinking only about how to win back money, if he is worried about fears, uncertainty of the result. Emotions should be considered as one of the main enemies of a trader, because they prevent from adequate evaluation of the situation, from noticing the important moments, from entering the market in time.
- "Rule of 3 Deals."
Following this simple rule can be a source of successful trading for beginners to the market, because it will help to minimize losses, save trader's money and his confidence in his abilities. The meaning of the rule is that after 3 transactions, no matter what their result is - losses or gains, you should leave the market and do other things, such as analyzing the situation and working with the transactions diary. You should not get even if the trades ended with a loss, you should not try to improve your performance if they made a profit - this will not lead to anything good.
- Transaction Diary
Another simple rule, following which a trader will improve his work on the market, is to keep a transactions diary. Such a detailed document will allow him to learn maximum information about his trades: he will see the percentage of losses and wins, track the effectiveness of the strategy, indicators, what his investments in a particular asset give him, etc. Knowing these valuable trading "parameters", he will always be able to correct them, refuse to work with instruments that do not bring him profit, etc. In such a diary one usually records expenses, profits, type of strategy, asset, expirations used, one can also make notes - this is the information which, with careful analysis, will allow one to eliminate deficiencies and improve one's trading results.
21 November 2021 in 17:16
very useful information
18 March 2020 in 08:09
Any education is first of all self-education, but it will turn out to be futile if it will not be supported by tutors, mentors, trainers, coaches — practicing Forex-traders… Completely independent education makes sense only at the stage of familiarization with the international currency market, then there is inevitable a need for exchange of experience and systematized knowledge. Also, do not have illusions that free education in the field of «Forex» trading will provide any economic effect. Yes, it will improve literacy, but nothing more. Therefore, at a certain stage of professional growth you’ll have to look for quality paid programs that allow you to learn how to earn on the difference of exchange rates.