Forex traders have to know these 7 things before they can start trading:
1) Don't Trade With Indicators - All they are doing is taking up space. Find out how to trade with price movement, and you'll have a better idea of how to trade the market.
2) Learn the concept of money management - It doesn't matter what kind of trading system you are using. If you don't know how to manage your money, you will never make it in this business. Too many people are just overleveraging their account, until it eventually crashes and you are left with no money.
3) Don't stay on demos too long - It's normal to trade on demos when you are first starting out. But you've got to cut the chord quickly. Trading with fake money cannot prepare you what its like when you're trading for real. There are emotions involved when real money at stake.
4) Maintain your poise - One of the hardest things traders have to deal with is what happens when trades go against them. Certain traders just can't handle this. Expect to lose once in a while, and you won't be so disappointed.
5) Start off small. Do some mini trading - Once you got the demo trading out of your system, start off trading on a mini account. Chances are you aren't quite ready to play full lots (both financially and emotionally).
6) Don't trade with more than 200:1 margin - Margin is the livelihood of any forex account. Anything over 200:1 can destroy an account quickly.
7) Understand how news moves the market - It's a forex trading certainty. The economy will always have news coming out, and you best be prepared for it, if you want to succeed. Too many people disregard this aspect of trading.
1) Don't Trade With Indicators - All they are doing is taking up space. Find out how to trade with price movement, and you'll have a better idea of how to trade the market.
2) Learn the concept of money management - It doesn't matter what kind of trading system you are using. If you don't know how to manage your money, you will never make it in this business. Too many people are just overleveraging their account, until it eventually crashes and you are left with no money.
3) Don't stay on demos too long - It's normal to trade on demos when you are first starting out. But you've got to cut the chord quickly. Trading with fake money cannot prepare you what its like when you're trading for real. There are emotions involved when real money at stake.
4) Maintain your poise - One of the hardest things traders have to deal with is what happens when trades go against them. Certain traders just can't handle this. Expect to lose once in a while, and you won't be so disappointed.
5) Start off small. Do some mini trading - Once you got the demo trading out of your system, start off trading on a mini account. Chances are you aren't quite ready to play full lots (both financially and emotionally).
6) Don't trade with more than 200:1 margin - Margin is the livelihood of any forex account. Anything over 200:1 can destroy an account quickly.
7) Understand how news moves the market - It's a forex trading certainty. The economy will always have news coming out, and you best be prepared for it, if you want to succeed. Too many people disregard this aspect of trading.
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