Hello my name is Elizabeth and i am new to trading can anybody help me with any tips to trading.
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I’d advise you to take on the book written by John J Murphy. He talks about technical analysis and trading psychology.
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Start with the basics. Learn from sites like investopedia. Learn about fundamental and technical analysis. Be good with the market research. Once you are done with it, you can start a demo trading account before risking the real money with real trading.
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Learn about the detail of the markets’ behaviour, it will all come in handy. Start trading with tiny amounts of risk capital per trade as soon as you understand the mechanics of your platform and a simple strategy. Don’t worry about making money, just worry about not losing too much per trade: the aim in this time is to learn about trading.
Organise your learning: follow a plan with rules: log your trades and what happened: separately log the trades you didn’t take: try and not spend great effort learning how to use tools and information that does not affect your trade decisions.
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If there is a simple and easy trading strategy, why should you find the hard one?
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This is the best answer. Sadly no one follows it.
Technical analysis provides levels where price will go. Fundamental analysis is “why was price held in consolidation when it should have moved to technical level”.
Technical provides facts.
Fundamental provides excuses.
Just remember you are just a drop in ocean and won’t change current of big boys with deep pockets.
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Trust yourself and work hard with demo account for more knowledge and experience of Forex. Learn Risk management and money management, you are good to go.
you have chosen best educational community from all , so it is more appropriate to be educated as a newcomer by learning, just go through the pre school level including practicing demo account. good luck
what you think , there is any different between money and risk management ?
Too many people misunderstand what risk is. Most confuse it with money management, but they are two very different things.
Risk is exposure to the portfolio. Money management is adjustment to the position size that allows you to maximize return without undo risk on your overal trading account.
Let’s say I trade market on four market portfolio EURUSD, GBPJPY, EURAUD, AUDUSD. In order to properly control my risk I must know the maximum drawdown my strategy has generated in each of the four currency pairs. Only then I chose right position size that will ensure that I will lose only certain percentage of my account in the event each pair suffers maximum drawdown at the same time. Most traders never take time to do this. Most will use some variation of 2% risk trade model. This style seeks to control risk by never risking more than x% of their account on anyone trade. What traders tend to do when using this method of risk control is using stops that are far too tight. They never consider that the other half of their management equation is position sizing. Trader using this method of risk control is also prone to breaking their rule model when their trading is producing consistent profits. Have you heard of traders double or tripling their accounts only to lose it back in a matter of days or hours? Trader who properly understands and manages risk never puts him/herself in a position to lose their entire trading account.
You are not trying to get rich… you want to be consistent. If you can make $1 a day you can make $1000 a day.