Competent work in the Forex market can bring in a very substantial income. At the same time, for a beginner, the chances of losing money invested in trading are very high. In order to learn how to earn and not lose a lot of money during the training period, you must follow certain rules.
It is necessary
- - account with a brokerage company;
- - funds for trading.
Instructions
Step 1
Choose a brokerage company that is included in the rating of the most popular and reliable brokers. It is better to choose a broker that works with five-digit quotes, rather than four-digit ones. Register, download the trading terminal from the broker's website. Deposit a small amount into your account - for example, $ 100. Do not invest any more, as you will almost certainly lose your first deposit.
Step 2
When registering an account, choose a trading leverage no higher than 1: 100. This will serve as additional protection against a quick drain (loss) of the deposit. With $ 100 on your account, trade the minimum lot - 0.01. Remember that your task at this stage is not to make money, but to gain experience and not lose your funds.
Step 3
Learn the basics of trading with a free demo account. When you know how to open orders, set Stop Loss (loss limitation) and Take Profit (profit taking level) levels, work with pending orders, study the basic principles of technical analysis, learn how to work with indicators, etc., you can go to real account.
Step 4
Do not chase after the win, this is the main mistake of beginners. Choose a convenient moment to enter - so, the word you are a hunter, hunting game. Let you have only two or three entrances a day, even less - but successful ones. Chaotic opening of trades always leads to a loss.
Step 5
Never win back, do not increase the lot size if you lose - this is a direct path to losing your deposit. Don't trade without a strategy, you should always understand what you are doing and why. If you do not understand how the price will behave, stay out of the market.
Step 6
Do not overestimate the importance of indicators - choose 2-3 indicators suitable for your strategy, no more. Their signals should only confirm your assumptions. Trading only by indicators is most often unprofitable.
Step 7
Learn to understand the logic of price movement. In assessing the situation, be guided by resistance and support levels, trend lines, channels. Learn from history how the price behaves, how it reacts to important levels. Remember that the price does not move by itself; there are real people behind it. The price movement is a reflection of their hopes, aspirations, their greed and fear. Learn to see the actions of traders behind each price movement, to understand the course of their reasoning. It is impossible to make money on Forex without understanding the price movement.
Step 8
Never rush. If you miss the right moment for an accurate entry into the market, do not try to grab onto the running trend - you will be among the losers. Convenient moments for entry were, are and will be. If you missed one, wait for the next one. By rushing and making rash decisions, you will always lose.
Step 9
What seems obvious is deceiving. If the price has formed some kind of graphical pattern or candlestick pattern, if the indicators show that now there will be a powerful leap in such and such a direction, do not rush to enter the market. The crowd always loses - as soon as the joyful newcomers, seeing a convenient moment, enter the market, the market “sharks” will immediately reverse the price. Most likely, the price will eventually move in the expected direction, but after a dash in the opposite direction, in which the crowd will lose their money.
Step 10
Remember that in Forex, you get your income at the expense of the losers. Therefore, learn to feel the market, understand it. It is knowledge of the market, understanding of the logic of price movement that is the only key to successful trading.
