5 Top Tips For Beginners

Wednesday, June 9, 2010

In that spirit, here are five tips every beginner must know Forex Trading: The

1. Learn learn the basics of the basics. Those who rush in the industry seem to be always on the losing side of his craft. Take time to familiarize yourself with the basics of currency trading very profitable car in the long term. You should be familiar with fundamental business and technical strategies as well as indicators such as moving averages, Fibonacci retracements and pivot price to name a few. The best we can do for you is to find someone to guide you through the learning process. In short, finding a mentor.

2.Don't Believe The Hype
Many beginners come into the forex trading industry with the wrong impression. This is mainly in part due to the number of fantastic claims made by various parties within the industry itself. Treat it as a real business that requires a disciplined long term approach to be able to make profits consistently.

3.Demo Accounts
Never rush to open a live trading account. Ideally, you'll want to start trading on a demo account for at least a few months. This will help you get a feel for how the markets work in a longer time frame. Those that open a live account within the first week (or even month) of demoing often go on to lose all their equity. Forex Trading Tips For Beginners

4.Currency Pairs
While online forex brokers offer a variety of currency pairs as well as commodities such as gold and silver, beginners should always to stick to a single currency pair until they are fully familiar with it. A good currency pair to start of with would be the Eur/Usd, which is arguably the world's most popular pair. It has decent daily range and is not considered very volatile.

5. Avoid Automated Trading Robots
Robots are only as good as the parameters you set them up with and as a beginner you are unlikely to have the experience or judgment for this or know when to close a trade manually.Read more: