➤ Forex trading for beginners

➤ Forex trading for beginners

Online trading transactions for beginners are especially difficult due to the frequent unrealistic expectations among Forex newbies.

So the first thing you should know is this: online operations do not make people get rich overnight, in a week or over the course of a month even though some sales make a profit. The faster an aspiring trader realizes this, the less money he will lose.

Here are some Forex industry statistics for beginners: 90% of retail traders lose 90% of their investment in 90 days. How painful! True? And the fault is only of them.

Therefore, we will share some buying and selling tips with Forex for beginners that if followed, will help you avoid being out of the market in 90 days.

The food chain of retail trading
It is absolutely important to know how the industry plans and is the first thing that a person who wants to learn to perform Forex trading for beginners must understand.

Forex Webinars Principals

The market is created with the collective combination of all its participants. The relative weight of the part that operates in the market is measured by the amount of money handled by that part: from hedge funds of one billion dollars and investment banks, to brokers of millions of dollars, to private traders with a pair of thousands of dollars.

Long-term operations are more secure than short-term operations for beginners in Forex trading
In the initial stage, its main objective is not to multiply its capital but to maintain it.

The main objective in trading transactions with Forex for beginners is to minimize the risks. The proper use of money management techniques and simply following the trend will make you profit. It's just a matter of time.

Believe it or not, mathematics is useful in online Forex trading and there are easy ways to calculate what balance, what leverage and what trading volume is needed per instrument to keep risks under control.

Thereafter, the "security points" are deduced in favor of the "entry points" until a balance between risk and performance is satisfied. Not the other way around!

If you think your capital is well protected - do your homework.

Another forex trading advice for beginners is to be careful when buying assistance software.

Most software is free due to the level of competition between the brokers. When you conduct purchase and sale operations, you are clearly charged a fraction of your transaction through daily swaps and a commission. These are inevitable costs.

Sometimes beginners in Forex trading are tempted to buy Forex robots also known as Expert Advisors (EA). Buy it if you think an algorithm can do a better job than you, but this is not going to be easy money, especially if you are not the coder that wrote the code. Some EAs work, but as markets change, for robots to remain lucrative, they will require adjustments that you will not be able to make.

For example, there is a particular robot that works in a market with trends, while in a rocking market a robot would embarrass its trading account, destroy your balance before you can say: Stop, it's HAMMERTIME!

By the way, if you do not know what a swap is - you have not done your homework!

Sometimes, Forex intraday operations take away a lot of time and mental resilience.

The casual beginner in Forex trading does not realize that most successful traders make money with long-term trends. They keep their orders open for weeks, months and even years. In this way Forex works more as a form of investment and less as a kind of lottery. Any Forex trading guide for beginners will tell you that it is a good thing.

Long-term operations require patience, calmness and being modest when negotiating volumes. The few hours that are needed in front of the computer screen and the little stress are a compensation mode.

It is easy to be impressed with online trading operations: real-time charts, business channel news, etc. The truth is that less is more. Information overload can be counterproductive, so you have to filter it and slow down your operations.

Having access to real-time graphics does not imply maintaining constant surveillance or performing operations without stopping.

Learn about technical and fundamental analysis!

The analysis is to operate! The graphs are useful for short and long-term operations. You should be interested in daily, weekly and monthly charts. Any Forex trading guide for beginners that talks about technical analysis will tell you that their main tools are trend lines, support lines and resistance lines and indicators based on it.


The game of guessing is a game of elimination. That is why successful sales transactions require 90% analysis and 10% to make decisions. Ladies and gentlemen, think more and make fewer clicks!

It will not hurt to have a minimal understanding of how fundamental analysis works internationally.

Do you want some homework? Read about interest rates.

Do not get complicated!

What is the best forex trading system for beginners? The simplest!

Do not overload graphics with indicators or your strategy with fixes and changes. The more complicated your operation strategy is, the less likely it is to work and to be able to follow it.

Below is an example of basic Forex trading strategy for beginners:

Use the 10 day simple moving average technical indicator on any chart of your liking. Each time a candle closes with a price higher than the opening price, it is a purchase signal. Each time the closing price is lower than the opening price, close your purchase and open a sale. As you can see, this is a strategy of change of tendency or Reversal, since the closing of an order entails opposite to the opening of an order.

Simple? Yes, perfect? No. Profitable? It depends on the market. If it is a trend market - yes, very profitable. If it is a range market - it is not profitable. It is up to you and the historical backtesting to find out how you are doing on average, in different markets and in different periods of time.

Not complicating can be a challenge if you consider the amount of support tools you can apply to the graphics. Remember: it is not about the amount of tools that are available to you, but about how to combine them in an appropriate way.

Sales accounts differ in more than the minimum deposit!

The minor features when opening a long-term trading account, despite being the most promoted, are the minimum deposit and reduced spreads. Pay attention to the securities portfolio, the execution model and the leverage that is offered. There is no best Forex trading platform for beginners, because in practical terms, if you learn to use one, you will have learned to use any. The important thing here is the quote delivered, which depends on the broker.

Be careful with the accounts offered by the Money Desk unless you are interested in your requirements. Generally, they are distinguished by having: not immediate execution, fixed spreads and a low minimum deposit. This simply means that you are trading with the broker and not through it, which can be advantageous when, for example, you are interested in scalping.

If you do not know what an ECN is - you have not done your homework.

Be very careful with volatile markets like the owner of a yacht in stormy waters!

Volatility is like the wind blowing the candle from your operation, but make sure it does not tear your candle. A volatile market shows marked variations to the side, which causes the spread to increase and its orders to "fall". Include the volatility analysis to your buying and selling operations! Consider the storms that you could weather every day without having to see how your trading account collapses in just 5 minutes.

As a beginner in Forex trading, what can save you a lot of money is that anything can happen in the market. For example, you can research the surprising Swiss Franc history that occurred in January 2015. No one saw it coming, but it did and left many traders and brokers out of business.

So, how should a beginner operate with Forex? Carefully!

If you do not know what gaps and slippages are - you have not done your homework.

In this industry nothing is news, unless you are the news!

The market has already ruled out last-minute information delivered on CNN, Bloomberg and its trader's calendar. The only thing that the news promises is volatility, that the spreads of the prices increase and before you realize it - you are buried in re-orders and using the orders of limited loss.

Unless you are a professional trader who operates on the basis of news - stay completely away from news-based operations!

If you do not know what recotization is - do your homework!