This short guide is intended for beginning traders, it is intended to explain the basic concepts of forex trading: demo accounts, spreads, leverage, lot sizes, types of orders...
Demo accounts are ideal to learn how to trade for free and without any financial risk. However, they don't enable you to develop the psychological aspect of trading.
Some tips to avoid the mistakes that are typical of beginners traders. Know the broker's trading conditions, secure your profits, follow the trend, establish a strategy, manage risk, etc...
This article, written by a professional trader, explains three methods for managing risk. Risk management and position size management can make the difference between two traders who use the same entry and exit points.
Proper money management allows one to maintain control over the risk/reward ratio of each trade. It significantly increases the likelihood of making money over the long run through management rules pertaining to stops and position sizes. The mastery of risk is the basis for success in forex trading.
A forex trading plan helps traders avoid making mistakes. It consists of a set of rules that precisely define the trading strategy, money management and the management of emotions.
Books on trading can be useful to learn trading. They provide a wealth of information and are usually inexpensive compared to formal training courses.
A hybrid trading system which combines a mechanical (or automated) approach and a discretionary approach can be ideal for forex traders who are influenced by their emotions.
Traders oftentimes lose money because of a lack of rigor or discipline. Ironically, these investors are usually aware of the reasons of their failure, but they are unable to adopt the mindset of a professional trader. Here are 10 reasons which explain why professional forex traders make money.
The transition to a real trading account is difficult and often leads to losses at first. Here are a few tips to know if you are well prepared. Make sure that you go through this checklist before you invest your savings in the ruthless world of forex trading.
There is no magic formula enabling one to become a profitable forex trader. There are as many approaches to trading as there are traders. Nevertheless, professional traders have things in common in terms of how they approach currency trading.
In forex trading, "herd mentality" refers to those traders who blindly follow the trend set by the masses. These traders generally adhere to the well known investment saying "the trend is your friend".
Here is a neat and nicely arranged list of key things you need to know in order to become a profitable trader. Although this list is not exhaustive, you'll find the following tips to be very useful.