Forex trading tips for new traders

Unless a person has spare money and is willing to learn, Forex trading is not for them. Unfortunately, many new traders fail and one of the main reasons is the act of desperation. They usually have a good job and then decide to pay the car or mortgage off by trading Forex. Rather than being disciplined and patient the 'desperation' kicks in and before they know it; they have lost all their capital. The frequency of this scenario is worrying so below are a few tips that new traders should take on-board if they wish to be successful traders.

Forex training

Everyone needs to start somewhere and Forex training is definitely the place to start. Whilst there are many books a person can read, there is no better experience than 'screen time'. Taking in what you see, hear or experience and using it on a trading chart is the most comprehensive way of learning to be a trader. Forex training provides exactly that.

Learn to use your trading platform

Forex brokers from around the world provide trading platforms for us to use. Some vary in look and feel but realistically they are all there so that traders can make orders i.e. trade. Therefore, it is absolutely crucial that the use of a Forex broker's platform does not delay any important investment decision that traders need to make. If this happens, it can be costly and opportunities can be missed in no time. This is why knowing your platform inside out is beneficial to your trading.

Do not copy others

There are millions of successful Forex traders around the world but this does not mean that they all trade in the same way or what they trade individually will suit everyone. Other people and their trading style can always provide a basic framework but if you truly want to learn to trade then you should develop that framework into a bespoke style that only suits you. If this means that you have to sit on the side while others trade then so be it.

Move on

It is very rare that trading scenarios will be identical all the time. This is why certain strategies have to be adapted to all scenarios. However, if this is not done there will be times when traders are caught out in what seemed to be a standard trade. If this is the case, then a stop-loss should take care of the losing element of the trade. Dwelling on it will not bring back the capital so the best thing to do is to learn from it and move on.

Do not get over-confident

Confidence is great in trading but there is a certain line that people should not go beyond. It can make traders feel invincible but when they least expect it, it is shattered by a huge loss. Unfortunately, there are many factors outside of our control that can turn the market around in an instant. If we are not prepared, it can have detrimental effect on our capital investment. The trick is to keep that confidence controlled and use it our advantage; not disadvantage.