Top 10 beginners tips
Welcome to the exciting world of Forex trading! As you make your way through our Education tutorials and lessons, we’d like to share with you some priceless knowledge. These Forex trading secrets can improve your way of thinking about the Forex market. Our Top 10 Trading Tips for Beginner Traders. Below we’ve compiled a list of what RoyalPip experts consider the 10 Golden Rules of Trading.
Every successful Forex trader has to exercise discipline, technique and develop a style. It takes time and dedication but it’s worth every ounce of effort! By following these steps your chances for successful trading will improve tremendously and you too will have knowledge of Forex secrets.
1.Stay Humble in an Unknown Territory!
Don’t make the mistake of most beginners. For example, they hear some rumors and invest all they have in the hopes of profiting quickly and effortlessly. As a beginning trader start small. Humbly learn all you can about a few instruments before you dive in.
2.Hold on to your Capital!
Quick profits are out there for the taking, but real success at trading comes with time and experience. Remember: staying cool in this line of work is achieved by discipline and knowledge, by entering and exiting the market confidently.
3.Respect Your Stop Loss!
Do you know what is the number one reason for traders to quit trading? They incur heavy losses because they don’t incorporate Stop Loss into their strategies. It’s that simple. If you are not familiar with Stop Loss, make sure you understand it thoroughly before it’s too late.
4.Create a System of Trading
Just like each person has their own fingerprint, so each trader has their own style. You must nurture and develop your own style by reading widely and studying carefully. Study success and you may achieve it!
5.Watch your Profits Grow!
Among the most important things to remember as a beginning trader is to not to close your winning trades too early. Avoid making decisions based on fear and impatience.
6.Know when to Adjust!
When your trades prove profitable, watch them closely and if needed, move your stop loss forward to your entry point to guarantee profit. Then, watch the trend and adjust your stop loss. And most importantly, watch the trend to prevent your investment from slipping into a loss.
Trading takes finesse and planning. If the price of a stock or currency suddenly rises or falls, don’t take that as an indication that it’s a good time to enter. Knowing your entry point well in advance takes study and planning. You must know your Take Profit and Stop Loss rates before you trade, so then you only have to wait for the right opportunity to come up.
One more thing that new traders should be aware of is that when a new trend starts to grow, it gains momentum. So, imagine that what you see as a great opportunity, so do thousands of others thereby strengthening the trend. This could push your trade into the right direction, increasing your profits sooner than you might forecast.
9.Taking a Loss? Get out!
Remember the old saying, “Don’t put all your eggs in one basket”? So it goes with trading. If one of your trades is taking a loss, pull out! You can always reassess it from the sidelines.
10.Be aware of the ALL risks involved
One of the most important things when it comes to foreign exchange trading is to be aware of ALL risks involved. We would therefore suggest to have a look at our Risk Warning Page
Remember these Forex trading secrets as you move ahead to the next page.
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Learn from your losses until you overcome them.
Don’t feel foolish if the market outsmarts you. No one is right all the time,
except the market of course.