Forex Trading Training
Forex (what is it? Full truth) is an international currency market that allows you to trade currencies at any convenient place and get a decent income from trading. Forex is the oldest market with its own laws, developed infrastructure, already tested by millions of traders. It is older than binary options market, what is also its difference. In addition, there are more functional features in Forex than in binary options trading. Here you can place various orders, take profits, stop losses, etc. This industry employs not only a huge number of speculators, but also the largest banks, dealers, investors, etc., which monitor the dynamics of currencies, serve the market. It operates around the clock, has a large set of operations and capabilities that are implemented through a system of different institutions (dealers, brokers, insurance companies, etc.).
- 1. Forex trading training starting from scratch
- 2. Basics of Forex market
- 3. Basics of trading
- 4. Forex trading preparation
- 5. Technical and fundamental analysis
- 6. Right choice of Forex broker
- 7. Trading strategies: what is it and what they are like
- 8. Strategies for Forex trading based on time
- 9. Popular Forex trading strategies
- 10. How the training courses can be and whether a beginning trader needs them?
- 11. How to avoid losing money trading in Forex market?
- 12. Training literature
- 13. Risk management
- 14. Reviews
Previously, this market was available only to a certain audience (speculators, analysts, etc.), today, with the development of Internet technologies, everything has changed: anyone can try the possibilities of this market, get income from it and improve knowledge in the field of trading. Nowdays, if you have access to the Internet, you can independently learn what Forex is, register with a broker, trade on a demo account and switch to real trading in order to start earning real money. This market is characterized by huge turnover; it has no geographical restrictions, is huge in scale and opportunities, and is available to those Internet users who do not have special education.
Trading in Forex market means trading in the Forex broker’s terminal, when a speculator enters into transactions by investing money in the currency, based on data on the growth and fall of the price of asset quotations. At the same time, it is important for him to study trading history of the asset, to take a certain position in relation to the currency. There are many such speculators today; they all get their income by trading in Forex market without leaving home. Forex trading is very simple: a player trades a currency against another currency, buys at a price when an asset should grow (long positions) and sells at a price when it will fall.
There are not many currencies available on Forex market: American dollar (USD), pound sterling (GBP), Japanese yen (JPY), Euro (EUR), Swiss franc (CHF), etc. Thanks to if it is easier for the trader to concentrate on trading with specific instruments; it is easier and faster to track their changes. In this way Forex differs from the market of binary options, which offers a huge number of trading assets. Traders use strategies, reliable indicators, different types of analysis (fundamental, technical), trading terminals to make Forex trading profitable. Correctly assessing the situation, analyzing the charts, selecting a position to enter, placing orders to buy and sell, you can earn decent money.
Forex trading training starting from scratch
There are more and more traders on the Internet who are interested in Forex opportunities. Some of them have experience with other markets: stock market, market of binary options etc. Another has no experience in trading at all. Everyone wants to immerse in the world of Forex and to get decent income from it. However, Internet offers a lot of information that is necessary for such work. There are both useful and necessary data, and wrong, false materials. In addition, a beginner on the market does not need some knowledge that is focused on an experienced player, and it is important to be able to distinguish it. In this part of the article we will tell you what a trader, who starts trading on Forex and learns trading from scratch should know.
- Studying market theory
If you work in the Forex market, it is important to know the basic terminology used here. This will help you to understand the articles, lessons, materials of thematic forums that are available on Internet. Important among these terms, for example, are: «lot», «order», «market execution», «scalping», «Ask», «Take profit», «spread», etc. If a trader is confused in the terminology of the market, it will be difficult for him to work here and especially to achieve good results, so it is worth devoting time.
- Trading on demo-account of Forex broker
A training account is not provided to the trader simply so. All reliable and serious brokerage companies offer this service. After a quick registration on the site, you can get acquainted with capabilities of the platform for free, but it is important to be able to use this tool correctly: to study its functionality, to see the availability of tools for market analysis, options, to understand how the terminal is ready for trading, whether there are any problems, what a personal account is, etc. You can also ask questions to the support manager and evaluate his professionalism, trade in the simulator of real trading, but with use of virtual capital, place transactions and observe effectiveness of work, test strategies, indicator signals. Most brokers offer a demo account without a term; it means that even after going to a real account, a user can always take advantage of educational trading.
Your first demo account by Forex broker you can open filling in the form below. After that you will be redirected to the broker’s website, decline the deposit replenishment and get a demo account open for the sum of $10 000.
- Studying helpful materials about Forex market
A trader should be aware that it is not enough to understand only special terminology to work on the market efficiently. Stable Forex trading involves much more. There are a lot of useful materials available on Internet, which are also important to consider and apply in the work: articles about money management, risk management, features of trading in the Forex market, features of assets, methods of their dynamic analysis, strategies and effective approaches to work, video tutorials, webinars, etc. Among other useful materials we note the market analytics, reviews, news that will become part of the player’s strategy, success stories of traders, and secrets of their earning money. In many ways, the concept of a professional trader is a constant study of market opportunities, new solutions for asset analysis, etc.
- Studying indicators signals
Indicators are also an important part of the trader’s work and without knowledge how to work with them; it will be very difficult to achieve success in Forex with their help. Indicators and oscillators, as technical tools for market analysis, are part of a technical type of analysis. On the basis of certain algorithms, they generate signals of trend change; indicate the imminent completion of trends, reversals, etc. In order to be a successful trader, it is not necessary to know all the indicators, but it is important to be able to use the basic tools properly that are part of most classic Forex trading strategies. The basic indicators are RSI, MA, MACD, CCI, Stochastic, Awesome Oscillator, Parabolic SAR, etc. The sophisticated instruments are considered to be, for example, OBV, McClellan oscillator, Chaikin Oscillator, DPO, Ultimate Oscillator, Gator, Relative Vigor Index, ROC, Elder’s Force Index, etc. If handled properly, these tools will help a trader to make decision on the dynamics of the market and to earn steadily with Forex trading.
- Studying trading strategies
There are many strategies available on the Internet; among them a trader can choose a method that will be the most convenient and comfortable for him. Some strategies are aimed at beginners, while others are recommended for professional investors with extensive experience in the market. Strategies aimed at beginners do not have complex settings, and complex indicators are not used here, they are simple and clear. Some of the complex techniques are based on signals of rare tools and methods of market analysis and require more immersion in the subject. How to choose a reliable strategy when starting Forex training from the beginning? Professional traders advise to pay attention to the classical methods of trading with the results that have already been tested by more than one player, which means that they can be trusted. The study of a number of strategies will not only improve understanding of the basics of the market, but also will be the basis for the development of the individual trading system that would take into account advantages and characteristics of the trader.
- Using bonuses
The most Forex brokers offer traders various promotions, special offers, bonuses. Bonuses can be welcome, holiday, special, for recommending the platform to a friend, for comments and reviews about the company. Bonuses are offered by a reliable broker not to complicate the trader’s work. To avoid situations, when using a bonus can become a real surprise for the trader in the form of obligatory work out of money, etc., it is necessary to read carefully the terms of the provision of these funds before taking part in a bonus. Of course, bonuses as an opportunity to increase earnings are beneficial to a trader, but not in case, when the rules dictate to work out of a huge number of transactions that will be impossible even for a professional market player.
- Forex trading with a reliable broker
Choosing a broker that provides access to the Forex market is an important task and one of the key elements of a player’s success. A broker provides the client with a lot of opportunities for working: a functional terminal, comfortable private office, a set of assets for investment, expiration, how to trade etc. Honest broker service will have a high quality, ready for trading service. Such broker usually has a license, works transparently, is open to communication, without a problem allows withdrawing capital. On its website you can find a lot of information that will be useful in the work: reviews and forecasts of analysts, description of indicators, strategies, training lessons, bonuses, contests, etc. Such company has authority with the market and its customers, and on Internet there is available a large number of positive feedback from traders about it, which is also important to read in order to be convinced of broker’s integrity.
Basics of Forex market
To earn stable money from Forex market, it is important to understand the basics of its work. We will discuss it further. Forex is an international financial market, where currency is a product to make money with. This is a round-the-clock market, which has a set of operations, rules, features. It provides a large turnover of funds during the day, it is large-scale, and there are no geographical restrictions. Any user of Internet, even without special education, can trade in this market. It employs the largest organizations (banks, dealers, etc.), as well as private traders. In order to enter the market and start investing in a particular instrument, it is important to register with a broker that provides an opportunity to earn money on trading currency pairs in the terminal.
The market operates according to a very simple rule: there is a trade of one currency against another and, buying at a price that, according to the trader’s forecast, should grow, he opens a long position (ask), if he sells at a price that should fall, a short position (bid) is opened. The difference between Forex and binary options is that there are available fewer trading tools. It also uses a different terminology; the principle of operation in the terminal is different, although here all transactions are opened easily. To analyze dynamics of the market the same indicators and oscillators are used here, it is possible to work with different expirations (for example, high-speed trading, scalping, long-term investments, etc.), automatic robots, it is possible to conduct a graphical, technical, functional type of analysis of the dynamics of quotations.
A trader must be able to use various orders correctly, use both market and limit orders, for example, he must take into account the spreads that are provided by each broker with different values, and they can be fixed and floating. To minimize risks and profit-taking, it is important to learn how to set stop-losses correctly (profit-taking, loss-stopping, if quotes start moving against a position) and take-profits (automatic closing of a position when the trader reaches the asset price level specified by the trader). There is even an opinion that Forex market looks more attractive for traders than the possibility to trade binary options, though here you will have to set more parameters to place a trade.
If you work on Forex, it is necessary to devote time to constant training, to test indicator signals and strategies on the broker’s demo account, to analyze the market, etc. It is also important to choose an honest Forex broker who will help trader to make money. In the trade the players use additional tools: «live chart», Economic calendar, MT4 or MT5 platforms, signal informers, robots, etc. Forex is a serious work that requires training of a trader, his constant improvement, testing new methods of analyzing of the dynamics of quotations, and only an integrated approach will make it possible to achieve results here.
Basics of trading
Forex is one of the types of financial markets. A trader can work with the stock exchanges, binary options, etc. All markets have their differences, available trading styles and tools. However, there are those factors that make it easy to combine all these financial markets in the concept of «trading», and we will tell you more about it. Trading is a modern way of making money by trading on financial markets. It is more correct to talk about it as online trading, because all the work is done on Internet: investment in different assets, market research and strategy testing. Internet has long been considered a part of our lives, offers different opportunities to earn money with the help of remote work format. This type of work is trading.
In the market, the work begins when an Internet user interested in trading opportunities decides to try his hand at it. He selects a broker, trades on a demo account, reads theoretical materials, tests strategy, etc. He has to learn the basic tools, basic indicators, part of the classic strategies, different assets (currency pairs, options, indices, cryptocurrency, etc.) and types of expiration. Then after the introductory trade he transfers money to the broker’s account and starts real trading, receives and withdraws money. He must determine a comfortable style of trading, find a convenient strategy that will be guarantee him profit. After successfully start of trading he reads useful literature constantly, spends time on demo trading and thinks about becoming a professional. Such experienced market players have their own trading strategy; in their «arsenal» there is a large number of working tools that bring results, for example, in long-term and medium-term trading.
Some brokers allow using the advisors for automatic earnings in their work. Honest platforms try to provide a client with maximum opportunities for work: a terminal, analytics, news and reviews, forecasts, free signals, an option of «social trading», a variety of assets, training programs, etc. It should be noted here again that only an integrated approach to the market will allow a trader to become a professional, consistently receive money from investments in financial markets.
Forex trading preparation
Forex market, as we have already written in this article, is a serious job that requires training of a trader and training should be of high quality. A successful start on Forex is, first of all, a consistent acquaintance with its capabilities study of concepts, theories, following the advice of experienced traders: to work correctly on a demo account, to trade in the real market with minimal amounts, to test strategies before using them in trading, to remember about money management, etc.
Educational trade plays an important role in the trade, which will allow verifying quality of service of the platform, to get acquainted with the principles of trading in Forex, many things here are different from binary options (it is important to remember about spreads, various orders, stop loss, take profit, etc.). Demo trading will help to study the terminal, broker’s service and test strategies without risk for your own funds. When a player is more confident in his abilities, he can move on to earning money. At the same time, do not forget about the training account, because it often operates without time limits and at any time it is possible to test strategies, new approaches to market analysis, for example, with help of graphical elements, patterns, etc.
Bonuses of Forex brokers are a great opportunity to have a profitable start for a trader. If you deposit your account, you can get 100% welcome bonus and double it. Modern companies also have a lot of such offers. The fact that some traders use bonuses for trading is not bad, if a trader works with them consciously, he can really increase his income at times. It is important, before a player begins to use a bonus, to study the conditions of its provision, because here he can face unfavorable conditions for working out the broker’s funds. In any case, it is up to the trader to decide whether to use a bonus or not.
The solid achievement factors for a market player are the choice of a reliable broker, its user-friendly and functional terminal, trading experience extension, search and development of an effective strategy, implementation of risk and money management rules. The attention shall be paid also to training, studying traders’ references about brokers, thematic forums, books, articles etc. The Forex market newcomer planning to achieve success here shall keep it in mind.
- Newcomers’ mistakes
Diving into Forex world, the majority of market newcomers make a number of mistakes preventing them from getting more money, developing in trading. So they get disappointed in Forex, leave references about Forex to be the scam and the fraud. All these mistakes may result in trader’s capital loss, so one shall know about them, eliminating them right when the trade starts. In this part of the article we will tell you about these mistakes.
- Trying to get income at once
Visiting the Forex broker platform for the first time, newcomers try to get income from trading in one go. Without diving into its aspects, having a little idea about definitions, with no skills of conscious trading, they expect a huge outcome, rush to transfer all their money on the broker’s account and play mindlessly. In such a case the disappointment comes easy, not about Forex only, but about any other market.
- Mindless trading
Some traders think that Forex is a game of chance. Entering to the terminal they start trading on a real account trying to guess the currencies’ dynamics, not bothering themselves to us the market analysis capacities, indicators, market reviews, signals and so on. But this is just one of the popular blind spots you’d better avoid. Considering Forex a kind of chance game is wrong, here you can’t earn money guessing currencies moves, the market is dynamic, follows its own rules, its trends change and it’s crucial to analyze them to forecast the situation. The lack of this understanding results in a great number of references in Internet about Forex to be the scam and the broker to drain the money.
- Trading last money
Often the newcomers starting their mindless trading in terminal hurry to transfer all their money, savings, roll ups. They trade happy go lucky since Forex is a game for them, lose all the money, and that’s where the disappointment comes etc. Sure, it’s wrong: all money shall not be transferred onto the account to trade them, moreover if the trader has no experience in trading in the market. Apart from this the money loss is psychologically hard, so the careful attitude to it is important, especially with no stable income source.
- Wrong operation on demo account
The free demo account becomes a useless option for a newcomer, seeing that it doesn’t bring him money. Quickly going through its options, even completing some transactions, he changes to the real account right then. This is the wrong operation with the training account. It provides the trader with the vast opportunities: get familiar with the market operation principles with no risk, complete first transactions, practice the improvement of performance indicators, apply in trading indicators, oscillators, strategies, broker’s signals etc. Also the careful study of the broker’s platform will help you to fully realize the quality of its services, terminal operability, efficiency of some its options. You can leave your questions for customer support and realize quite how professional it is, whether bonuses work here, whether the broker keeps its promises to the customer etc. Analytics, training programs, personal account and so on are available on the demo account already. Working with this tool consciously the player will be able to feel more confident in real trading, achieve the solid returns more quickly.
- Choosing a Forex broker based on bonus
This is also one of the popular traders’ mistakes, to pick a broker for trading based just on its bonus advantage. The matter is, that the Forex market is characterized by more competition for the customer, so the brokers have to think out more and more offers, bonuses, attract him by various advantages. Along with fair companies the scam artists operate providing more sexy and gainful offers, appealing to the huge audience of traders who just started. Of course, not all players understand from the word go that they may be deceived here, and just after they transfer the money on such company account and started trading, they can’t withdraw the earnings, contact the company manager. It becomes clear that it was the scam and the con trick. The choice of trading platform is a much more complex process indeed: it’s important to study its operating experience, the availability of a license, reputation, positive references of traders, training account, analytics, training courses etc. Such approach is more used by professionals, which are aware of scam artists existing in the market, and looking for a trusted company for getting solid returns.
- Trading without market knowledge
The newcomers to the market begin to trade immediately in anticipation of a speedy income after registration with the broker and transferring their money to the account. They make bets in the system at random, try to guess the movement of quotations and do not even realize that all this will only lead to disappointment: dynamics of the movement of assets is influenced by a number of factors and in order to predict something, they need to analyze many things and use different tools. Only after losing money they think about a serious approach to trading, study theory, rules of analysis, etc. In this way it already is a real work when it is necessary to consider many factors.
In this part of the material we told you about some mistakes that makes the beginners in trading. To start Forex trading it is important to understand that the market works according to its own laws, that earnings are possible only with a thoughtful approach.
Technical and fundamental analysis
When trading Forex, it is important to pay attention to the study of market dynamics, because it directly affects the results of such difficult work. Among traders are popular 2 types of analysis — technical and fundamental, and they having a number of differences, if a player knows about them, he can use them better and improve his profitability. With the correct use of their capabilities, it is easy to achieve stable earnings.
Technical analysis is an analysis of dynamics of the assets, in which «technical means» of the market are used to search for signals: these are indicators, oscillators, strategies, candlesticks, patterns, etc. If you look at the asset chart, you can immediately see the movement of quotations, which initially seems chaotic, but it is not so. The dynamics of currency movements depends on various factors that are subjects for this type of analysis. In this approach the decision on future dynamics of the asset is made on the basis of its past changes. For this purpose, different parameters are analyzed: analysis of time intervals, trading volumes, etc.
Indicators allow you to get some average value of the price and oscillators are used in the movement of prices within flat market. RSI, MACD, Momentum, Stochastics, ADX and others are popular on the market. By adding such tools to the chart, you can analyze their signals, observe their dynamics, track overbought/oversold states, downtrends/uptrends, etc., place bets and make a profit. There are many different trading systems available here and a trader will always find something comfortable among them: these are indicator strategies, techniques based on patterns, candlestick charts, indicator signals, oscillators, etc. Advantage of such analysis is that it is possible to work with both high-speed and long-term transactions.
Fundamental analysis of the market can also be considered one of the most common types of situation analysis. It is able to simplify trading, increase an amount of capital in the account. This type of analysis predicts the dynamics of currencies with help of financial indicators of organizations, assessing the impact of news background on the growth or decline in the value of currencies. Data of news, «hot» reports and statements of the large organizations and heads of the Central Banks are used for work. It is also important to take into account the news related to changes in economic indicators of the countries: for example, index of business activity, sales volumes, unemployment rate, reports of economic sectors, data on the key rate. The data of macroeconomics of the countries, general economic background between them are also used. All this can change dynamics of an asset, provoke its active movement, and, knowing it, you can earn money by placing a deal properly.
Of course, the beginners use fundamental analysis not very often, it is more used by professional investors to invest in long-term transactions, although it can show good results in medium-term and intraday investments, because it takes more time, requires serious preparation. A trader will not be able to trade it, if he prefers a high-speed trading, because here it is necessary to make quick decisions, and he simply will not have time to analyze the market. Most often the traders work with news strategies, economic calendar.
Right choice of Forex broker
Forex broker is the most important element between a trader and the market, which provides an opportunity to enter the market at any time convenient for a speculator to start trading. The broker provides a client with the terminal, publishes a lot of useful information that helps a trader to make a decision about a bet and earn money. The right choice of a Forex broker is a serious task for a trader, because there are a lot of scam brokers in the market, who are interested that their clients lose money, «funnel» the deposit.
Top 3 Forex broker in our opinion
|Broker||Min 1st Deposit||Leverage||Spread||Founded||Review||Open Account|
|$10||1:1000||from 0, 007 points||2013||Review||Visit Broker Demo|
|$200||1:500||from 0 points||2015||Review||Visit Broker Demo|
|$100||1:50-1:300||from 3 points||2017||Review||Visit Broker Demo|
The newcomers to Forex especially often meet scam artists, because they know little about this market and choose a broker that will offer them the best bonuses, high profitability. Further, after transferring money to the company’s platform, the beginners start to trade and lose their funds, when they want to withdraw, they face the fact that it is impossible to carry out these operations, because the broker begins to «throw obstacles» which were not previously known (additional verification, conditions for working out bonuses, etc.). It is important to understand the following: before choosing a decent and honest broker, it is important to study the current rating of Forex brokers, read reviews. Of course, a professional Forex investor will behave differently when choosing a broker and pay close attention to several factors:
- Availability of experience, reputation
Trader will be more safe dealing with the companies with rich market trading experience, which are distinguished by pro-active approach (for instance as a sponsor of some events), good image, being heavyweights in the market. Solid entities passed the great development way, perfectly know about fair competition for a customer and cherish every platform trader. Such companies are stable, successful, with a big base of traders.
- Availability of a license by broker
Any solid broker has a license for performing activities in financial markets, sometimes not one. This document existence makes trading protected for the platform customers, proves its integrity, legitimacy. Also, if any problems occur, the trader can always write a letter, complain to the regulator, which will help to solve the case in fair way.
- Availability of a demo account
The option of training trade is also a factor that distinguishes a professional market player from the scam artists. An opportunity to study a functionality of the broker’s platform is to make the first transactions here with the help of virtual money. Availability of this option confirms that we do not have a scam that is hidden behind a supposedly workable platform, but an honest, open and transparent company that has nothing to «hide» from a potential client. A demo account is a simulator of trading on a real account and is simply priceless for a professional trader: here a trader can study functionality of broker’s platform, try trading in it, test strategies and other tools, think over and work out his own strategy.
- Availability of a functional terminal
The main activity of any trader takes place in a broker’s trading terminal, so it is important to understand, if it is functional, convenient and simple. In addition, Forex professionals pay attention to whether there are any failures in its work, how quickly all operations are performed here, whether asset quotes are accurate, what tools are available: indicators, graphical elements, types of expiration, etc. — all this affects the ability to analyze the market and use a particular strategy.
- Availability of informative website
When choosing a safe broker crucial is the company website. This resource shall contain a lot of information about the company, its licenses, bonuses, offers. The website is a source of data about the current market analytics, news, on the websites of most major companies the professional market reviews are published, along with the training articles and video tutorials, strategies, signals, quotations. Dealing with such brokers is more safe and interesting, as there are various options provided for a trader to operate comfortably.
- Availability of bonuses
Though not always but bonuses are a welcome attribute of Forex trading, so it is important for a broker to develop special offers, contests and promotions for its customers. It will also be more profitable to work with such company. However, when choosing a bonus, it is important to understand that there are rules for its processing and sometimes it is better not to accept any bonuses from the broker, because their conditions are unprofitable to meet and even impossible not only for a beginner, but even for the professional market players.
- Availability of professional support
One of the factors that allow to determine a level of broker’s readiness to work on the market is a quality of its technical service. When you invest your money in the platform, it is important to trust a company and see it as a market leader. If technical support is slow, incorrect and gives wrong advice to the clients, it affects the outcome of their work.
- Availability of traders’ references
Of course, before you choose a reliable Forex broker, it is important to study the reviews about it on Internet and, if there are a lot of negative reviews, and according to the most ratings a broker is designated as a scam, it is better not to have any deal with it and not to transfer money to its platform, because you can lose it. Not all brokers have only positive customer reviews and it is normal when a broker is criticized. Another thing is that some companies try to listen to the customers’ opinion and aim to provide them with a really high quality service.
Trading strategies: what is it and what they are like
To get a stable income in Forex market a trader will need to have a trading strategy and often more than one strategy. In addition, effectiveness of the chosen strategy will depend on the result of the trader’s work. One of the problems of the beginning traders is how to choose the strategy that would bring a high stable income. At the same time, it is important to understand that, unlike trading in the binary options market, Forex offers more functionality to trade: among them use of stop losses, take profits, etc.
You can find a great number of various Forex strategies in Internet: indicator strategies, strategies for newcomers, for professionals, scalping, long-term strategies etc. We bring to your notice the list of the best trading Forex strategies proving themselves well while trading in this market.
- Moving averages
This is one of the popular trading systems by beginning traders. Among its advantages there are: an ability to trade any asset, easy to use, quick search for signals on the chart. It also works great with different expirations. For example, you can set the following parameters for trading: timeframe: W1 (trend detection), H4 (entry into trades). At the same time a high-speed trading is more dangerous for the trader, because there are many false signals. On the weekly chart there are 2 moving: simple (5) and exponential (21). If this chart shows a downward trend, sales are made on the four-hour chart; if a trader observes an upward trend here, then there are purchases on H4 timeframe.
This is also a trading strategy used more by market newcomers. Its point is that there are no indicators used at all. It will allow a trader to get maximum earnings. The work takes place on daily timeframes; you can trade any trend currency pairs.
According to this simple strategy you should work as follows: to wait for a moment when a signal combination of Japanese candlesticks will be formed (to carry out the purchase transactions, it is necessary to wait for the appearance of a bearish candlestick, then — two bullish, in this case a body of the second candle of this type should be closed more than maximum of the first). It is important to place a pending order for the purchase of a contract 5 points higher than maximum of the second bullish candlestick, while a stop loss is placed at the minimum of the candle, take profit is at a distance of 500 points from point of entry into the transaction. When a price passes 200 points, a deal should be transferred to breakeven and activate a trailing stop with a step of 50 points. If in 4 days trading ends with a minus, it will be necessary to close them on the market.
This is an interesting strategy that will allow a trader to work in the market constantly, while minimally studying analytics. It will allow a player to open a deal every day at the beginning of London session, spending about five minutes on trading. This is a simple system of work that takes place on timeframe M30. At 10: 00 GMT, when London session starts, a trader should wait for the formation of first thirty — minute candlestick, put two pending orders: 1 — for a purchase of a few points above the maximum, 2-for accomplishment of the transaction below the minimum. Stop losses are placed on the extremes of this candlestick so that when a stop loss works on one order, it leads to activation of the opposite pending order. There is no need to set take profits, but it is important to close all transactions at the end of the session, regardless of their profitability, remove all orders. If the positions are not closed in time, it can lead to substantial losses.
This is another simple and accessible strategy for beginners that involve trading on breakout or rebound of the levels. To get started it is important to find the price zones on the chart from which a line rebounded more than once, mark them with horizontal lines, because probability of a new rebound is high. Any currency pair, timeframe: M5 or M15 will be suitable for trading. If a line breaks the horizontal level, there will be a breakdown of the level-this leads to the fact that it loses its strength.
If there was a rebound from the level and fixing the price for it, you need to enter into the transaction in the market way in the direction of the rebound. If there was a breakdown, you should wait for a pullback; enter the market at the best price or in the direction of the breakdown. Stop loss is usually placed behind the level, take profit-at the closest level. It is important to remember that if profit has reached 40 points, it is not necessary to trade and do not engage in trading after the news release.
- «Three candles»
This strategy resembles «Juicer», but can be used with different timeframes, minute, 5-minute etc., perfectly profile themselves by scalping. When starting to work on the strategy, it is important to remember the following rules: the first candlestick is the one whose maximum or minimum stands out from other bars; maximum or minimum of the second candlestick exceeds the previous one, may be lower than it; the third candlestick is an income for the trader. The entry into the deal occurs after the second candlestick is closed, the exit — when the third one is closed. Stop loss is located at the opposite level of the second candle. It is important to pay attention to the size of the candlestick: if the first candlesticks have a small body size, do not trade; it is necessary to skip signals and with a very large body size of the second candlestick. In addition, you must not trade according to the strategy for thirty minutes before and thirty minutes after release of important news.
Strategies for Forex trading based on time
All strategies that a trader works with in Forex market differ in use of different expiration, time at the end of which the transaction ends and a player gets the result of his work. Depending on the type of expiration of the trading system there are:
- Intraday trading
Such Forex strategies are also fast, although there are more opportunities to learn dynamics of the asset. Such systems are aimed at making of a large number of transactions during the trading session. In this high-speed style of trading in Forex market that is popular among scalpers, you can also enter into an unlimited number of transactions. If you learn dynamics of the asset, indicator signals, place orders limiting the risks, you can get a decent income. However, it is important to remember the risks of high-speed trading: market «noises», to analyze the market, to be able to work correctly with orders, etc.
- Strategies for the period up 1 day to 1 month
These strategies are more stable and moderate than those we described above. Due to quiet trading one can use the wide range of services, spare a while for more detailed market analysis. They are more popular by professional players, which are concerned about getting solid returns from trading. Here it’s crucial to be able to apply to trading the technical and fundamental analysis, various strategies, indicators. All this will allow you to tale the decision concerning currency pairs dynamics, set stop losses and take profits, open a transaction and get solid return. Such strategies have disadvantages, too: long transaction result expectation, more significant investments required, crucial role of orders, which either will let you get income or incur expenses, basic knowledge of market technical and fundamental analysis required etc.
- Strategies for the period up 1 month to 1 year
This long-term strategies are very interesting to traders concerned in getting solid returns from Forex market. At that please note that they are offered not by any Forex broker, less popular by majority of market players as here rich trading experience is required. To work with long-term investments more efficient, it’s important to have skills in analyzing market by different ways (this are fundamental factors, indicators and oscillators signals). Besides, here more money is needed, which the investor won’t need in the short term. The outcome of such trading is also to be expected longer. However, there are enough advantages, too: low risks of losses, various market forecast ways, stable income. Such transactions are executed by traders with the experience of advanced market analysis, and implementation of all available services of the platform.
Popular Forex trading strategies
There are such strategies on Forex, which are used by market players on the regular basis, show the stable income and are effective. These are popular strategies, efficient and working trading systems, which are always in the «armoury» of a professional trader. If the newcomer has no particular strategies comfortable for him, he can use such popular methodologies, which may be fairly called also the best Forex strategies.
This weekly candlestick trading system has been able to prove itself to experienced traders and beginners. To work it is important to set on the platform timeframe W1, then select 14 currency pairs, analyze a size of their candlesticks. Next, you need to choose the longest distance from opening to closing of candlesticks during the week —you can open a deal at the beginning of next week for this currency pair. At the same time, if a candlestick was initially bearish, the position will be long, if — bullish, it will be short. Do not forget about the parameters of stop loss — it’s about 100-140 points, take profit — 50-70 points. In the middle of the week you need to close the order, if it was not closed earlier. Then you should wait for beginning of the week again, repeat all the settings on the platform and continue trading.
Scalping allows you to get an unlimited number of profits within 2-3 hours of intensive trading. Such systems work relevant in flat market too, when you actually can make money. However, some traders know that flat market at temporary stage is an absolute trend in small segments, which means that it is possible to trade on M5-M15 segments at any time, regardless of the situation. Scalping on Forex is a popular strategy that will allow you to conclude about 1000 transactions; it is also successful because traders work competently with leverage.
- Trading based on news
This is one of the simple and therefore popular Forex trading systems. For trading traders study the news background, try to forecast the currencies’ dynamics, visit the economic calendar service, read news of the companies, state entities, central banks of the countries. Here also pending orders are used making trading more simple, as you don’t have to sit before TV waiting for news outcome. Also traders use analytics of major market speakers, for instance, Nikolay Korzhenevsky and Artyom Deev.
- Strategy for the indicator «Caiman»
Most traders are well aware that opinion of the crowd in the market can be wrong. Another thing-if you use a mood indicator, which analyzes opinion of the majority of market participants about the dynamics of a particular currency pair. There is such strategy that often helps here, according to which a trader goes «against the crowd», against opinion of the majority, it is based on the opinion that pessimism and optimism of trading participants is not eternal, the market is waiting for a turn in any case. In this case the mood indicator will offer only to determine the current trends — bearish or bullish moods and choose the moment to open a trade. For such work the experienced traders often recommend to use Cayman indicator, which was developed by analysts of the leading broker of the market, company AMarkets. It is easy to use in work, will make it easy to assess market trends and to determine its reversals in time.
- A nonlosing Forex strategy — what is it like?
No trader wants to be stressed out and lose their money. But there is no one hundred percent no loos strategy in the market; otherwise everything would be very simple. However, starting trading on Forex with popular, well-established systems, you can work on creating your own methods of trade which will give a stable profit. Don’t waste your time on searching for a no loos Forex strategy, you should improve your experience, your knowledge and develop the only strategy that will be a no loos one for a certain trader.
How the training courses can be and whether a beginning trader needs them?
Almost any newcomer to the Forex market begins to think sooner or later about how to become a professional, improve his experience and do serious training to feel more confident during trading. Training is an opportunity to immerse you in the market opportunities, to prepare for the conditions of trade in the real market. When the traders understand it, they begin to look for training courses in Forex trading, and then another difficulty is waiting for them — how to find exactly the course that will suit them. The Internet offers a variety of courses: free and paid courses, programs for beginners, for experienced players, courses to learn the basics of the market or, on the contrary, immersion in the work with a specific type of tool, strategy, etc. In this case is important a question of the quality of training, its duration, necessity for practice, etc. In this part of the article we will talk about the difference between paid and free courses.
Internet offers a large number of different paid courses of Forex trading. They are often the comprehensive programs that include not only market theory but practice, and also there are an analysis of strategies, errors, manager’s support, constant feedback, support for trader after the beginning of the course, etc. It is obviously that these services are primarily provided by the professional organizations. In this way is convenient to work and it is more efficient and profitable for the trader, who will be able to receive advice from professional analysts and players during training, actively practice, learn on mistakes. At the same time, the price of the courses may differ among the companies, and you can find a more comfortable option for yourself. Paid courses can also be provided by the brokers, successful Forex traders. We offer you a selection of paid training courses in Forex trading, which are available to you on Internet now.
- Forex trading training with Hamilton
Company Hamilton is a European broker that provides training services for trading in the Forex market, and there is a free basic course in which the basics of theory, tools and money management issues are studied. According to the website of the project after completing this course, a trader will start to make money in 14 days. The teachers of the courses are experienced investors, masters who have achieved good results in Forex trading. The following company’s courses can be interesting for you: «Technical and fundamental analysis of financial markets» (advanced course), «Building of the trading systems and tactics» (professional course), «Master class» (expert course). However, there is no information about the prices, no detailed description of the programs. Training can be both remote (remote format) and in the office of the company.
Training price: upon request
- Forex trading training with FIBO Group Academy
Academy of FIBO Group offers a professional approach to training in the Forex market. Different courses are available here, aimed at experienced and beginning traders. Training is conducted by market experts, analysts who have achieved success in investing money in Forex. The main feature of the courses is an integrated approach, a skillful combination of theory and practical training which will allow the participants of the Academy to prepare for real trading as efficiently as possible. It also offers seminars, workshops, congresses, etc. Among the offers for novice traders we note the video course «Comprehensive package for the trader», which is offered to purchase from the site for$299. This includes 22 video tutorials, advisor and trading account in the amount of $300. There are also available such courses for beginners: «Three touches», «Trade using technical indicators», «Level system, or who trades the market? ». Professionals can take courses that will improve their experience of trading: «Fundamental analysis and reading of economic calendar» «Integrated technical analysis», «Trading signals — a way to successful investing», etc. The traders of Academy can attend seminars, webinars, consultations, etc.
Training price: up $199
- Forex trading training with Trader Assist
An interesting option of training courses on Forex is offered by service Trader Assist that is founded by a professional trader Yaroslav Mudriy. The company employs professional investors and analysts. The advantage of the courses is a comprehensive approach, maximum materials for work, the possibility of serious training, which includes: basic theory, practice, trade even during the course: it is a provision of analytics, news of Dow Jonew Newswires, signals, books, webinars, support of company’s analytics, chat, video tutorials, articles, etc. This approach will allow a trader to start making money before the end of the course, improve his experience and knowledge, spend less time and money on training than if he would study on his own and make mistakes.
Training price: up $40
- Forex trading training with «Phoenix» institute
The trader may be interested in training courses offered by the Institute of Trading and Investment «Phoenix», the only scientific and practical center in our country where works analysts, teachers and market practitioners. It is written here that a trader is a profession of future, which will be more in demand. After training at the Institute, you can enter the number of professional traders. Traders are offered several courses that can be completed either remotely or in the office: START-UP, FOCUS GROUP, INTENSIVE, MASTER GROUP. At the heart of learning here again an integrated approach is a combination of theory and practical classes, work with a mentor, analysis of the errors, etc. There are master classes, seminars, etc. as part of training. On the website it is possible to study the detailed programs of courses, to get them to start training.
Training price: up $1300
- Forex trading training with Alexander Gerchik
Alexander Gerchik is a trading guru, whose name is known among professional traders. Today thousands of students actively adopt the experience of Alexander Mikhailovich, trading in plus. This is the only coach who invests in trading of his students personal funds. According to Mojo Wall Street Warriors Alexander Gerchik is recognized as the safest trader with virtually no loss-making days in the daily trading sector. On its website there are many training courses aimed at different audiences of players: beginners, professionals. It offers online programs and traditional training, seminars, workshops, master classes; it is possible to become a member of the private club. Among the various training programs we note here: «Trading from A to Z 2.0», «Wolves from Wall Street», «Course of an active trader», «Real-time trading for advanced traders», etc.
Depending on the type of course, traders are provided with: market theory, practical classes and a personal account with access to training materials, a closed support group on Facebook, feedback from the curator on homework and transactions, analytical reviews of Alexander Gerchik, etc.
Training price: up 897€ (basic course), 1497€ (advanced course)
There are also free Forex trading training courses in Internet. They are more appealing to traders, and rightly so, you don’t have to pay for them. But how much information provided in such programs will be valuable and really useful in trading? It is important to understand that no one will share such information for free. Therefore, there is a high probability that these courses — a scam, that a training trader will be just an interested person who wants to make money and teaches his students nothing useful. Also, such trader can be an agent who attracts naive players to a dubious project, which will continue to deceive them further and promise those mountains of profit.
If a player cooperates with such traders, he can lose money, using a quasi-effective tool. At the same time, in the case of large losses, as a consequence of such strategy, he will refuse to return money. Using free courses, you should understand that they will never give a 100% guarantee of effectiveness. It is better to avoid such programs, because the information that they give the traders you can find on Internet in free access. We offer you some examples of free Forex trading training courses that are available today to traders on the web.
- Forex trading training with FinWiki project
- Forex trading training with «Center of modern information technologies»
The task of this company is to train traders according to the author’s method: these are programs for beginners and extension courses for experienced players. The courses are aimed at in-depth study of the possibilities of Forex market, attention is paid not only to theory but also to practical training. There are both paid courses and a free basic course of Forex trading, which is aimed at beginners in trading, will allow them to dive into the world of finance and be ready for trading. The course attendants will get to know what is Forex, open the account by broker, get familiar with effective strategies, analysis type etc.
- Forex trading training in Alex Grant’s Private club
Free practical lesson in Private club of successful traders Alex Grant will let you get information about the techniques and secrets of profitable Forex trading. The event is addressed to both beginners and experienced traders, will introduce them to the following topics: «How to use the news for profitable trading», «How to achieve quick results in trading on the stock exchange, even if you are an absolute beginner?», «How to see the sniper points to enter the position?» etc. There is the free training attendance available for traders, along with the chance to join Alex Grant’s club (the practical lesson price is $400).
- Forex trading training with WebmasterMaksim.ru blog
The project site is dedicated to trading; here are published news, signals, a lot of tools to work on Forex, useful articles, etc. In addition, free author’s training course in Forex trading is available on the site and, but in order to get it, you will have to register at affiliate links from 13 brokers, specifying a special code, repost pages in social networks, send links to the author of the course to check. After that participants receive a secret mail, through which communication and mailing of letters will take place. As part of the training, traders will be able to get acquainted with the possibilities of automated trading advisors, robots. As present students will receive an adviser, copying the transactions, get acquainted with free advisors; see how the advisors trade, etc.
How to avoid losing money trading in Forex market?
Trading in the Forex market, it is important to think about this activity as a work, consciously study various tools, test strategies on a demo account and think over forecasts regarding the dynamics of assets. Here it is necessary to understand that the wrong forecast will lead a trader to loss of money. In addition, there are generally a lot of different «stumbling blocks» in the market that can also lead to the loss of player’s capital, and we will talk about them in this part of our material.
- Forex broker «Terms of service»
«Terms of service» is an important document, which any trader is simply obliged to know, which is worth studying even before he deposits his funds on the broker’s account and start trading here to earn money. This document can have other names, but it is necessarily located on the broker’s website, it should be read by each participant of the company’s platform. But what information in it can alert a trader? «Agreement» contains a lot of important information about how the work on the platform, what are the duties of the broker who offers trading services to the client, what is his responsibility, how he will respond to certain situations that have occurred in the market, etc. Also, there are a lot of materials about rights and duties of company’s client using its software, how the trader’s applications are considered, in what situations (terminal failures, force majeure, etc.) a broker will not be responsible for the client and will not return him lost funds. In addition, this document is updated constantly and it is trader’s responsibility to keep track of such changes.
If a broker makes a decision on any problem, for example, in case of force majeure, technical failures, loss of money as a result of not closed transaction in time, he is guided by the provisions of the «Agreement». If a client of the company does not read its provisions, the decision on his complaints is made according to the rules of this document. There are often several points in the «Agreement» that will «work» not in favor of the trader, and only complicates work with the company. In our Forex broker reviews we also do reviews of the company’s’ «Agreement», so it is important to read them to be aware of what is waiting for you on the platform.
- Study bonus terms
All broker bonuses, special offers and promotions have special rules for working with them. It is important to get acquainted with them before a player will decide to take part in these offers. It is worth remembering that there is always a possibility that in such conditions there will be unfavorable or impossible conditions for working out bonus money, especially if the trader has little trading experience. Often such conditions are difficult even for professionals who advise to avoid bonuses, otherwise it is very easy to lose both the broker’s money and own funds. In the rules of using the bonus you can learn about its timing, the features of working out these funds and withdrawal of money from the platform, if there is a way to withdraw these earnings at all, etc.
- Trade with strategy
As we wrote before, Forex trading is not a game and not roulette. It’s easy to lose all your money here without even noticing it. If you work consciously with strategies, indicators, different types of analysis, you can see the signals of dynamics of assets, which will allow you to make the right forecast and get welcome earnings. In addition, unlike the binary options market, Forex allows you to use stop losses and take profits, which will give you an opportunity to fix profits and limit losses in the event of an incorrect outcome of trading. Therefore, it is important to set these parameters correctly not to lose all your money.
- Carefully study a Forex broker
Looking for a reliable and honest Forex broker, it is important not to «rush» to the company that offers the most profitable bonus (which will be a «trap» for a trader), but carefully study its reputation, experience, reputation in the market, licenses, positive feedback from traders, etc. Otherwise, there is a high probability of meeting with a scam artist who fraudulently gets user’s money and disappears.
- Charge back will help to get money back
Often the brokers appear to be the scam artists: they get money and disappear. There are many situations when brokers prevent the withdrawal of money by their actions (it means that each time they find new excuses to refuse a client to withdraw). These are common market situations that make traders feel cheated, unprotected, especially, if the broker does not have a license and they have nobody to ask for help.
However, there is a way out in such situations — it is the chargeback procedure. The companies, providing services chargeback, will help a trader to get his money back and get justice in resolving the issue. Chargeback is possible in other situations: if any Internet user was deceived, lost money, using the services of sites, projects, if he received services or goods of poor quality, etc. What is the chargeback? This is a popular recent procedure for cancellation of payment and refund to the card, which is based on a number of rules of the international payment system, which are an obligation for banks cooperating with payment systems. They accept the terms of IPS payment system (International Payment System), and are obliged to follow them, acting as its participant.
To speed up the return of their money the traders will have to follow the recommendations of the company, which must collect all the documentation, prepare an evidence base and start working with the Bank. The faster a trader will contact the company providing the chargeback services, the more likely he will get his money back.
- Forex trading psychology
Trading on Forex, you need to study theory of the market, to get acquainted with the basic tools of trading, improve your experience, take training courses, but you also need to remember a psychological component of such work, so there is a concept of «trading psychology» which studies the emotions of the trader, helps them to control and eliminate fears, self-doubt, etc. It has been proven that such emotions interfere with trading in the market, contribute to reducing attention, which leads to the loss of money. It is worth remembering the psychology of trading in order to use its basics to defeat all those emotions that prevent the player to concentrate on the trading process and achieve good results. Next, let’s talk about the rules of trading psychology.
- You shall not be afraid of trading
Trading in the Forex market, some players are often afraid to start a transaction, because when they change to a real broker account, they have a fear of losing money, which drowns out the «voice of reason», and then a trader will lose attention, attitude, make mistakes. In this case, it is important for the players to understand that losses also occur among professionals with extensive trading experience. This should not scare and stop them; on the contrary, it should only motivate them to improve their market analysis and trading experience. The trader’s task is to make profit higher than losses.
- You shall not be greedy
Trading in the Forex market, it is also necessary to understand that all attempts to earn as much money as possible will not lead to good results. If you thoughtlessly trade and make transactions, it is difficult to analyze the market correctly; in chase of result you can lose mood and attention. So you do not notice current situation in the market and have no time to analyze the state of your account. This trade will be stopped only when you receive a message that you need to deposit in your account to continue working. When you start trading, it is important to set a right goal: not to make more money, but to get a stable profit. Do not rush with a lot of transactions, it is better to trade calmly, study the market carefully, and do not lose your working mood.
- You shall not turn on the thrill of excitement
We have to note here again that Forex is not a gambling game and not a casino, where you need to guess the outcome of the bet. Forex trading is a serious job in which there are both expenses and profits. A game takes place for fun; trading is a job, a source to earn real money. To make this income constant, you have to work much, study materials, test strategies. In addition, do not make another traders’ mistake — to trade for no reason. In order to make a forecast regarding the movement of quotations, you need to make analytics, study history of the dynamics of assets and have a trading plan.
- You shall not forget about patience
Forex is still not a simple way to make money; you will need market knowledge, trading experience. Trading does not tolerate rash decisions, so patience is an important quality that sobers the trader, it makes him work, analyze the dynamics of assets more carefully, use various tools and make an informed decision. Impatience is more common among newcomers of the market, because they are afraid to be unable to enter the market and insert orders incorrectly, etc. They are less focused on the job, inattentive, in a hurry to do everything. It is important for a trader to learn to be patient, to work carefully and consciously and then success will come to him.
- You shall not retrieve your losses
Another profound mistake of the trader, which can lead to loses of money, is trying to recoup in case of loss. Making a decision to return his money in any case, he is already less focused, his emotional background is unstable and there is no attention. He begins to hurry to trade one transaction after another and eventually loses money. Of course, we can understand desire to recoup and correct the situation, but after unsuccessful transactions most likely there will be a loss, because the trader is not able to «manage» the situation. Simple and popular rule of «three transactions» can help the trader. According to the rule after three unsuccessful transactions the trader should better leave the market and do other things than to trade and lose all his money.
Traders, who wish to become professionals of the market and receive a stable income, should pay great attention to the training, testing strategies, improving experiences, etc. Here is almost impossible to do anything without studying professional literature and experienced traders will agree with it. A lot of useful information is published on behalf of professional market players in the books about trading: theory of the market, analysis tools, also here is offered working traders’ tips, success stories, etc. All this is shared with the reader by famous traders who have become legends of trading. Next, we will tell you about the books on trading, which should be read by the market player. Moreover, you can immediately download them for free from our website and start reading.
- Anna Ehrlich «Technical analysis of product and financial markets»
This insightful book describes the different methods of technical analysis that can be used in working with the commodity, stock markets, as well as Forex, etc.The methods of market analysis described here can be used both separately and together. The author of the work will teach the player to analyze the situation in the Forex market independently and accurately forecast the trend change.
- Vyacheslav Taran «Playing I exchange is simple»
This exciting work will be especially interesting for those traders who believe that trading should bring not only earnings, but also pleasure. Here is offered a novel way of trading, the work that will allow you to avoid many constraints and change your lifestyle.
- Michael Brett «How to read the financial pages»
This useful book will tell a reader that information on the market is evaluated differently by players that it is influenced by many factors: experience of trading and market analysis, individual characteristics of traders. In this case, it is important for each trader to find those tools that will allow him to trade in the market as correctly as possible, will help to interpret the state of the market in a single key. Also, the author notes a number of features of modern media, which try to mislead traders with their materials. The book is equally useful to read not only for experienced, but for the beginning traders too.
- John Keynes «The general theory of employment, interest and money»
This book is considered to be one of the main works of J. Keynes, because it has seriously influenced the development of state economy. It is thanks to this work the name of John Keynes is inscribed in the history of trading as an outstanding philosopher and economist of the market. Exactly in this work the author introduced the concept of «multiplier» for the first time, here arose an idea of using regulators in the market to prevent a crisis in the state and get out of it without losses. Some of ideas of the book became the foundations of the management of state economy; definition of «Keynesianism» appeared. This work should be read by all market players.
- R. Prechter and A. Frost «Elliot wave principle»
«Elliot wave principle» is a classical market theory book, actual and insightful for todays traders. Exactly after appearance of this book traders started extensive using Elliot’s theory in trading, achieving positive results. Ralf Nelson Elliot studied the market consistent patterns carefully and realized that prices always change by identifiable models, which he then defined. Now the wave principle of market analysis is one of the effective analysis methods for price dynamics, able to improve trader’s results.
- R. Deel «The strategic electronic day trader»
Another interesting publication for traders, who would like to trade effectively during the day, is to engage in day trading. The book is equally easy to read both for beginners and experienced players. Trading today is one of the most desirable professions for a person that can bring him a decent income from investments in different markets. But, in addition to high earnings losses are possible here. Then there is a fair question: how to avoid losses? The traders should improve performance of their work, optimize the ability to analyze the market, etc. In general, you can find the answer to this question in the book.
- Jesse Livermore «How to trade in stocks»
This is one of the legendary publications about the market, dedicated to trading, which will be useful to any participant, regardless of his experience. As you know, Jesse Livermore built a brilliant career as a trader, earned millions by investing money in stocks. One of his success secret is to monitor the market constantly. In addition, he had never relied on luck in his work, thought through all the deals. For about 40 years he was engaged in trading, developed the rules and strategies that made him successful. You can read about all in his book.
Professional Forex traders mention use of rules of risk management as one of their success secret. Risk management are risk management procedures that expect the player while working in the market: loss of funds in the account, fears, greed, desire to win back money, etc. Using the rules of risk management, the trader can prevent loss of money, feel more confident and begins trading successfully in the market. Ignorance of the basics of risk management is one of the common mistakes among traders, because it is very difficult to monitor the state of the account, to react correctly to losses. Next, we will tell about the basic rules of risk management which will allow the trader to achieve decent results in the Forex market.
- Minimal sum on deposit
If a trader is just starting to work in the market, it is not necessary to transfer all money to the account. Since he does not have any trading experience, any strategy yet and does not know how to track balance of the deposit, and he is unlikely to be able to stop trading, it is better not to transfer large amounts of money to the account. It is necessary to select a money limit that he can trade without problems, and if he lost them, he would not feel serious losses.
- Not over 5% for trading
Trading in the Forex market, you should not also invest in one transaction more than 5-30% of the capital on deposit. The trader is not insured against possible failure, especially, if he is just starting to work. But if his deal ended with a loss, he would be able to win back the money and climb back into positive territory. In addition, loss of small amounts does not affect the amount of deposit, it will not affect trader’s decision to leave the market at all only because of his disappointment.
- Minimal amount of assets for trading
Also beginners should know about the other rule: it is not recommended to work with several assets because for making the correct forecast it is necessary to understand their characteristics, to study the history of their dynamics, etc. Such analysis is usually carried out by more experienced market players, but not beginners that can determine a wrong prediction, will not track the balance in time and will lose all the money in the pursuit of income. It is worth trading 1-3 assets and only when you can trade them confidently, you can look at other tools for investment, but in this case the player will already have experience in trading, working with strategies, etc.
- Deadpan trading
When you trade Forex, it is important to have a right attitude, because trading is a job that requires concentration, attention, speed of reaction, etc. It will be very difficult to track the mood of the market, if the player is distracted, if he thinks only about how to win money, if he is worried about fears, uncertainty in the result. Emotions should be considered one of the main enemies of the trader, because they prevent to assess the situation adequately, to notice important moments, to enter the market in time.
- «3 transactions rule»
Following such a simple rule can be a source of successful trading for market newcomers, because it will minimize losses of funds, save trader’s money and confidence. The main idea of the rule is that after 3 transactions, whether their results are loss or profit, you should leave the market, do other things, for example, analysis of the situation and work with a diary of transactions. You should not recoup, if the transaction ended with a loss, do not try to improve your performance, if they made a profit — it will not lead to anything good.
- Transactions diary
Following another simple rule the trader will improve their work in the market – this rule is to keep a diary of transactions. Such a detailed document will allow the trader to find out as much information about his trades as possible: he will see the percentage of losses and winnings, track effectiveness of the strategy, indicators that are given to him by investments in a particular asset, etc. Knowing of these valuable «parameters» of trading, he always will be able to adjust them, refuse to work with tools that do not bring him profit, etc. The diary usually contains information about losses, profits, type of strategy and asset, used expirations. You can do your own notes — this is the information that, with careful analysis, will eliminate the shortcomings and improve your effectiveness from trading