what can you suggest to those newbies who want to start trading with forex.
Spend a few months studying at the free school on here
Don’t trade too much on demo. For first year on live never trade higher than 0.1 lot. Remember to always put SL’s.
Three simple rules. And you’ll be happy and never lose.
Yes for safe trade use smallest lot size is very good to manage money and making more comfortable during trades, and avoid greedy and over taring if still newbie, because this is become reason trader get failure, and if stil realy newbie they must spent time practice in demo account
learn learn learn
finisch babypips school
if you have questions afterwards ask them here
find your own style
1 month of real money trading teaches you more then 10 years of demo account trading (even with small amounts)
dont start gambling
Finish the babypips school here. Reread it occasionally.
I actually do think that demo account trading is a good thing, as long as it’s in moderation. Use it until you get used to the software and the way the market moves, then switch to a small live account and trade with small lots.
I agree, they must start on learning all about forex. and have a deeper understanding about it. so they will come up with effective and profitable trading strategy.
but i think it is one of the starting place for newbies to start and try if their strategy would work. 6 months maybe are enough for them to stay on demo on demo account.
I can suggest you to think about forex as a profession like any other. Which means you need to spend a lot of time in education about forex trading in order to succeed. However, in forex trading there is no guaranty that you will succeed even if you spend enough time to educate your self.
For example: If a person spend a couple years of education to become a doctor, he/she will become a doctor on the end of that education and can get a job as a doctor in some institution. However, if you spend couple of years in forex trading education, that still doesn’t mean you will become a professional forex trader.
The reason why this is the case, is that in forex trading, despite the education you will get, still the success depends on the trader’s personality, self-discipline and trading psychology.
well, good suggestion from all of you, and maybe newcomers must always remember to create effective plans that can help them get good profit on every trades they will do.
Most of the newbie traders do not know what is right for them and where they should be starting. so it is also important for them to take their decisions correctly :21:
Hi Fiona, I will be a bit contrarian here. Trading should be simple. As simple as buy near support and sell near resistance. The problem is, most of retail traders risk their capital so much more than the hedge fund industry does. Mostly it because retail traders have no supervision of strict, i mean TOTALLY, strict risk management body.
As an ex-trader of institution, let me give you a big picture of how the investment institutions work. Every single day, the first part in the morning, we sit together and do scanning on the market. From economic data and statistical method of probability. We have a conjunction of market direction. That is first.
Second, every single trader in the room will get briefing from our risk management division. These guys telling us how much we are allowed to lose. We STRICTLY can’t breach that rule or we’re getting fired. And guess what, risk percentage has been never more than 1.xx percent of our traded fund.
Third, believe it or not. Prominent trading houses of big banks, never us profit target as benchmark. We use risk as benchmark. That is, how much percentage we can save. Because in real professional trading industry, we see any return as risk (which statistically measured with standard deviation of benchmark growth, let say, central bank interest rate). So any deviation, be it lower (loss) or higher (profit) from benchmark rate, is regarded as “risk”. Therefor, that could be negative or positive risk.
Thats how we see the market, and trading. So, what is the key taking points here.
Let me tell you this. As a newbie, find any strategy that you are most convenient at. All strategy is good. Believe me. As long as you follow the Babypips school here (which I believe the best basic trading education resource for any retail even institutional traders could have), there should be no problem.
BUT, please, really focus on your money management. never trade big. everytime you put a position, you have to be aware that those money you are betting at, has to be regarded as a loss. By this point you will realise that a very careful approach on risking your money is the most important.
We, at the industry, believe that what makes us profitable is not the trading strategy that we use. But all because of the risk management that we take. Remember, risk management comes first. Never play big, always play small. As small as the maximum money you are ready to lose.
After all, trading is fun. But you have to do it for fund! I hope it helps.