Newbie

Beginner Questions
1

Hi my names Aaron,

I am 18 years old and fairly new to trading in general, i know small aspects of it however i would like to get a better understanding and learn as many new things as possible so that one day i may be able to start trading. If anyone thinks they can help me along the way please feel free to get in contact with me.

Many thanks!

2

Hey Aaron,

I’m sure other will say the same but the school of pipsology is really the best place to start…it’s here on babypips and free!. It will give you the best start you could want. Open a demo account with a broker and start trying to get used to the features of the broker and how to place trades and stops etc. there’s lots to learn but if it’s of interest it’s easy to want to learn. There are plenty of traders on here who will help with specific questions too.

All the best

Shyfx

3

Forex is a profitable trade but also risky . Loss is part of the trade and as a beginner gaining much knowledge is very important so as to be equip to handle trading with the right knowledge. Babypips school is a good avenue start reading about forex then you start practicing with a demo account. And please do not rush into trading without practicing first.

4

Welcome to the forum, Aaron

To piggyback on what the others have said about practicing on a demo account, it’s important to keep in mind the following.

With demo money, it’s easy to stay calm when you equity drops 20%, because no real money is at risk. With a live account, such losses are hard to stomach. Try not to risk more than 2% to 5% of your equity on any trade, and by that I mean 2% to 5% of the equity you plan to invest with real money. So if you plan to invest $2000, then try not to risk more than $20 to $50 on any one trade even if you demo account has a much larger balance. Note that you can still place long term trades. For example, on a 1k micro lot trade, you’re risking 10 cents per pip, so with $50, you could risk up to 500 pips.

5

Here is my 2 pips worth.

I am sure that many other people have advised the same thing, and even though it might seem like common sense, will say it again. Educating yourself in a chosen field, and one that you are potentially considering to be a major source of income, is not a waste of effort. Even if it ends up being one you do on the side of another regular job, learning as much as you can to do so profitably is still a good idea.

One of the best pieces of advice I have ever read in regards to trading (of any kind, not just Forex) is proper Money Management. Stating it is simple, implementing it, not so much. Basically, it means learning how to make profits, and not end up giving them all back to the market.

6

Start visiting the school of pipsology, in the same time you can visit stockcharts.com where you can learn everything about technical analyses than open a micro account, make some small deposit and start developing your own strategy based of what you have learned.

7

That’s great advice, JD4!

In fact, a study conducted by the DailyFX research team into the traits of successful traders found that “in general, a risk/reward of 1-to-1 or higher was more profitable than one that was lower.”

8

Hello Aaron, welcome to our forex community! It’s great that you’re starting to learn about forex trading at such a young age. Might I suggest you swing by our School of Pipsology and follow our trading blogs to hone your forex skills? See you around!

9

Hey Aaron!

My name is Jason, I started trading at 19 and I’m now 22. Starting early is a great idea my friend! Being a young trader I can connect with you kinda haha. But the school here at babypips is the best place to start, go from start to finish do it 2 or 3 times until you have a good solid understanding of what it teaches. Take notes in a trading journal along the way, once finished ( or while doing the courses ) open a DEMO account and trade. Get the feel for trading and after completing the school, Apply a system and keep to it, don’t change system to system each week, a lot of traders fail that way! Give you system at least a month to prove itself. Stick to the rules of the system, once you start getting risky with your rules, you start to lose in my experience. Once you got some good screen time under your belt, that changes some, because you understand the market much better. DEMO until you’re consistently profitable for at least 2 months, after that, open a live micro account. That way you get the emotional transition from DEMO to LIVe and can see how you do. After 3 or so months of being profitable live, than you can trade larger lots and start making decent cash. LIke I said keep a trading journal that you take notes in, why the trade was a bad trade and how to prevent it next time, why it was a good trade and what you did right etc… keep your systems checklist nearby as well. ALWAYS check your checklist before entering a trade make sure it 100% meets your conditions to enter the trade. And lastly, be patient, I can never stress that enough, Patience is very very key in forex, don’t rush anything along the way, it will get you no where. Hope this helps, always feel free to ask questions, we are always willing to help!

Happy trading

Jason

10

Hi Jason! Thanks so much for recommending our School, not just for learning the basics, but for reviewing over and over again to get a better understanding of forex trading. Great tips for newbies you’ve got right here, too. See you around!

11

Thank you PipDiddy! You guys here have helped me a TON over the past couple years, I recommend the school to anyone who wants to learn forex, Great info in the school to help traders see real profit!

All the best

Jason