SAs a beginner entering the world of trading, it requires a lot of learning and experience so that you can master the market game quite easily. Forex is not only a means for investing with a high risk factor, but also teaches us how to analyze the market in a more effective and targeted way. Playing Forex is not just relying on instinct, but the psychological game of every trader must be properly trained so as not to fall into fatal mistakes. Loss and profit are bonuses that you get in playing forex trading, so we suggest that everyone who wants to enter the world of forex must equip themselves with experience, skills and extensive knowledge about the world of trading first. In this article, we want to share information that has generally been explained on the internet, maybe this information from us is quite useful for you as a novice trader. Please see the information below.
Tips for Becoming a Forex Trader for Beginners
- Avoid getting rich the quick way
As we wrote earlier that forex is not just giving you convenience in making money but training yourself to be ready to lose money as a form of forex game risk. It is not surprising that every novice trader always wants a big win or money to become a rich person in a fast time. Although it is quite possible to happen, the odds of the game will determine it later. Once again we want to emphasize to you, without taking into account the risk with the largest possible trading lot size, you will not necessarily think about losses afterwards. No trader really understands what it means to predict the right price movement, even in the stock world.
- Random Trading ? Don’t do that.
The best strategy in playing forex trading is with very simple entry and exit, don’t enter the market just as an estimate. So that random entries without any basis are just like online gambling games. Playing forex is different from online gambling, although both still rely on luck, the difference in terms of analysis is clearly quite significant. But there are also many people who think so, depending on how you deal with it wisely.
- High Leverage : Big Risk
As we know that in the world of forex trading it is known as Laverage which is actually the first attraction that sometimes makes many novice traders smitten. Brokers in Indonesia and abroad are always competing to offer high leverage with the assumption that they can steal the attention of novice traders. Even so, this high leverage is very possible for you to open a large number of positions because the minimum margin provided is quite small. Once again, you can’t predict market price movements with accuracy, so it’s quite risky if you keep doing it. The worst case scenario is of course a big loss.
- Use Stop Loss
Note that in the world of trading there are times when you have to take action as quickly as possible to anticipate losses that cannot be predicted when the time is right. Many traders do this because they are afraid of losing a lot of funds, but not a few are also willing to stay in positions for a long time in the hope of turning things around. In fact, how to survive that is not reinforced with the right analytical foundation can destroy your account in an instant, because you yourself never limit the risk. No matter how sophisticated your trading model is, keep using stop loss to protect your account.
- Emotions bring big losses
It’s true that if someone is playing forex trading but can’t control their emotions, it’s highly likely that the opportunity to lose is right in front of their eyes. What we mean is that it is difficult to control this emotion, which is not thinking logically which in the end plays with high leverage and relies more on predictions than accurate market analysis. Forex not only gives you the convenience of making money, but trains your psychology in the game. Never force your will on a market whose movements are very volatile.
- Prepare the Best Strategy
The next stage if you want to become a professional trader is to be able to prepare the right strategy. One of the most appropriate steps is to play with a trial account or commonly known as a demo account to see how great your control is both from the emotional side to market analysis itself. Consistent in applying forex game strategies can produce maximum results compared to relying on predictions or estimates alone.
- Money Management
The most important thing when you have plunged into the world of forex is that you must be able to implement large and appropriate financial management. Not everyone is able to do this and it ends sadly. It’s true, a forex trader usually has an income above 5 million – 10 million more, but if you can’t control your money well, then 1 year or even the next few years will not have investment or old age savings. This is important to note for all novice traders, but it is important to remember well that Forex is not the only way to make money fast but to train your patience and experience in the world of traders.
- Follow market developments
The next guide to playing forex trading for beginners is to stay abreast of market developments that often change. Global market developments can help you to choose a currency pair that can be traded later. Even more leverage if you choose a strong currency pair vs. a weak currency.
- Monitoring Your Position
Even when playing forex you use a pending order complete with the use of stop and exit levels. Also note that the monitoring of trading positions is in line with what you expected. For that reason, don’t forget to continue to pay attention to / monitor market price movements.
- Make a trading plan
As a novice trader, you will be faced with a more mature financial plan going forward. It’s not easy to do this, but it has to be. Also plan how you deal with market movements later until the way you make decisions, some of these minimal trading plans you must fulfill are:
- Know the clearer buy and sell signals
- How to determine stop loss and take profit (Limit)
- Market criteria with high risk/reward ratio
- Better strategy in understanding market movements
right time to start trading
Trading frequency can be daily or monthly
So much information that we can convey to all of you about the guide to playing forex trading for beginners. Hopefully this simple information is enough to give you new knowledge in playing forex trading. That is all and thank you.