When you are starting Forex trading, it is not easy to get a good hand on the market. Becoming a good trader can be time-consuming, so a few tips will make it easy for you to understand the market in less time.
We have discussed a few tips bellow, those will be very helpful for you for becoming a successful trader.
Way to become an online trader
Becoming a Forex trader doesn’t require much, all you need is a computer or smartphone, internet, and a trading account. First, you need to open a trading account in any trading platform, then it’s good to start trading with a demo account for a few days till you start getting positive results. Once you start getting some positive results, then you should think about depositing real money into your account. Trading is not a very hard task but you must need clear knowledge about this market as a foundation.
Choosing the best place for trading
The trader needs to keep his mind cool so that he can notice the market movement. A trader should choose a comfortable and quiet place no mater he is trading from home or office. A new trader also keeps a notebook or spreadsheet to note down all the possible outcomes and reasons for opening a trade.
Trade-in longer time frame
If you are an amateur trader you should not trade in a shorter time frame, because understanding the market in a shorter time needs lots of experience. We will suggest 4 hour or daily time frame for a new trader so that they can find out good opportunities and start learning to control their emotions. When you become comfortable with a longer time frame, you can go for the shorter ones.
Choose some favorite currency pairs
There are lots of currency pairs in the Forex market. No trader can keep an eye on all the currency pairs at a time. If any trader tries to trade in all currency pairs he will end up with missing potential trades. So choose some currency pairs and keep their chart open in front of you so that you don’t miss any potential trade.
Following the trend
When you start to learn about Forex trading, you will listen to drawing trend lines. When you start trading you should trade in favor of market trend and should avoid trading against it. There is a line that goes “Trend is your friend”. Memorize it before opening your next potential trade. Being a new trend trader, you should visit https://www.home.saxo/en-sg/products/futures so that you get to know about the professional environment at trading.
Look for a good candlestick patterns
When you are looking through a currency pair, look for a good candlestick pattern before opening the trade. If you found a good candlestick patter, it may be possible that lots of other traders also watching that candlestick pattern for making a move, and because of that market can follow the trend or go against the trend. So candlestick is an awesome tool for trading but one should not trade only based on these patterns.
Keep a clear fundamental knowledge
There are lots of traders who don’t have any kind of fundamental knowledge. They always go for any trade by only doing the technical analysis. They may make a profit from there trade but you cannot always judge a market by your technical knowledge. Because, when a news or COT report publishes the market goes insane and your technical analysis not going to work that time. So, before start trading keep a clear concept on fundamental analysis.
Fixing risk exposer
Every trader wants to get rich by trading, as a result, they take higher risks to earn more and more money. They don’t follow any kind of money management rules and end up with a broken bank account. As soon as, you learn the importance of making and following a proper risk and money management rule, it is better for your trading career. A trader should take risk more than 2% of his account balance in any single trade.
These are the few basic tips for startup traders for becoming a successful trader. You can find more tips if you surf the internet. Follow and review them if you won’t be successful.