Forex Trading Learning Tips for Beginner Traders
Articles studying forex this time, still have the theme of the forex trading system, because the trading system is very important for the success of a trader. The main mistake often made by novice traders is that they do not have a trading strategy. Because of the many interesting reasons for forex trading , the time is 24 hours, two-way transactions, the existence of a leverage system, etc., often beginner traders are lulled by this ease and make them want to prove their abilities because of the ego they have. The selfish attitude that is usually done by a beginner trader is that they are so confident they can get profit and make a fortune in a short time. In fact, a successful and successful trader usually includes people who are humble and disciplined. This attitude can be obtained from experience and accept the reality in the field of forex trading, one of which is being able to accept losses.
The first step to becoming a successful trader is by designing a trading strategy or making a trading plan. Making trading strategies is very important and actually very easy.
To develop a trading strategy, a trader must pay attention to the following:
- Reasons for trading: Why Buy or Sell?
- Instruments that want to be transacted
- Trading purpose: how many targets do you want to achieve? How much risk is ready to be borne?
- Money management
Before entering the position we must have the right reason .
Many beginners when entering the position because it is based on an attitude of impatience or just based on feeling when you see prices move up or down. This is a recipe if you want to lose your capital. You must have the right reason why you take a Buy or Sell position, this reason can be based on technical analysis or fundamental analysis. Always use these two analyzes as an excuse.
What currency or instrument do you want to trade .
Sounds like this is very simple, but from this easy thing it can make you dizzy if it is not determined from the start because each currency pair or instrument has the characteristics of each. There are those that are suitable for scalping and those that are not, there are those whose movements are fast there are those that are not. Therefore you must know what instrument you want to trade
Determine when and how often you trade.
As is known there are several types of trading that can be done. Determine whether you want to be a day trader or become a trader who will hold a position for some time or a trader scalper. Setting your trading time according to the schedule of your daily activities and your responsibilities will have influence.
The next step is to determine your trading goals
What is your target profit and stop loss.
Try to place profit and stop loss targets before entering a position, don’t worry because you can change your target and stop loss at any time if something unexpected happens in the market. The wrong habit that is usually done by a beginner trader is to rush to take profit while leaving floating minus. This is because the beginner’s mindset is very difficult to accept if they are wrong.
Placing a stop loss when you enter a position will make you disciplined and learn that sometimes your analysis is wrong and learn to accept it, a further mistake often made by novice traders is that they are often unrealistic about the goals to be achieved.
Money Management is important in trading .
The first thing that novice traders must understand is that in this forex trading world no one is 100% going to profit even though it is a professional trader, they also have experienced loss. The attitude of accepting when the analysis we are doing wrong is also important, the key to accepting losses when our analysis is wrong and immediately taking action before experiencing a bigger loss. To do that a trader must understand how much capital he has and then determine how much risk is ready to be borne. Many experienced traders advise not to risk more than 5% of the capital for each position, this seems very small for novice traders but believe this will avoid big losses.
Thus are the forex learning tips regarding the preparation of a good trading system. Don’t ignore this trading system, because of the success or failure of a trader, one of which is discipline in the application of a trading system. Finally .. Congratulations on learning forex !!