Tips and Strategies for Learning Forex Trading
Forex trading can be an alternative business to get additional income through the internet. Before starting forex trading , first consider the risks, don’t just be tempted by the results. Only with enough experience and skills, a trader will be able to succeed in the forex business. Without qualified experience and knowledge, forex will only be a dangerous skull path. The correct forex learning process is absolutely necessary for the success of a trader.
The general public at first glance knows that making money in the forex business is almost impossible because more than 90% of beginner traders experience loss. Some even consider forex trading including gambling. Why can opinions like this be formed? The reason is of course because many traders who have no knowledge, trade blindly without doing the right analysis. Trading forex, stocks and feeling based gold is very dangerous.
To succeed in an online forex business, multiply your experience and look for a good mentor. Without a mentor, then you have to find our own personal trading system from the book and conduct a trial. Can data from the past predict the possibility of an accurate movement? Yes, technical analysis (analysis based on historical price data) is very important so you can anticipate price movements. It should also be noted, when there are fundamental news that has a big influence, usually the market will be very volatile.
The forex market is generally divided into 2, namely large and retail traders. Large traders are financial institutions, banks or big bosses who have very large capital. Retail traders are very small traders who hold funds of only 20% of funds from the market. The role of large traders is able to move prices when they make large-scale transactions. This is what makes trading fundamentals more accurate when approaching economic news announcements. We as small traders can gain profits if we follow this big player trend. Fundamental news for forex trading can be checked at the forex factory . However, if you want faster info, you can get paid news for hundreds or thousands of dollars per month (Reuters, Bloomberg, etc.).
Retail traders usually trade technically with the help of indicators using statistical calculations. The right time to trade technically is when the market tends to be calm and there is no important news. This makes sense because the market is driven by humans too, which has certain behavioral tendencies at certain times. It is important for you to study technical analysis before starting forex trading . What is technical analysis? In forex technical / graphical analysis, there are graphs with large / daily timeframes up to minute timeframes. Instead, do not use a time frame that is too small to determine price trends such as 1 minute (1M), 5 minutes (5M). Why? Time frames that are too small will have a lot of false signal / noise. The bigger the time frame used, the more valid / accurate the trend.
Beginner traders who want to learn forex trading , we recommend using a demo account first until advanced. Choose the appropriate strategy and test first with a demo account for 2 or 3 months. See the results whether the probability of a high profit or even a loss is very large. After trading a demo account, practice your mental or trading psychology with a live account or trade with real money. Psychological conditions when trading forex using real accounts are very different! The key to successful forex trading is patience and discipline with a strategy that you already believe in.Avoid greed and excessive fear when trading!
Forex trading is classified as high risk. One of the most risky among other financial investment instruments. The risk that you must know before starting forex trading is to have the possibility of losing 100% of funds. There is no forex trading method that can guarantee you are definitely 100% profitable. There are many good forex trading strategies, but no one can guarantee 100% profit. Forex trading is not a money printing machine that can make you rich suddenly without having to work hard. There is no success without hard work. Hard work is part of the success of learning forex . You need to work hard to study market analysis and behavior so you can analyze it well. It also takes extra mentality when trading results are not what you expect. Discipline! Have successful traders ever experienced a ups and downs in trading? The answer is almost certainly “yes”. To minimize the risk in forex trading, you must dare to limit the risk / cut loss from the losing position.