Forex traders have to know these 7 things before they can start trading:
1) Don't use indicators - They are just blocking your view of what's important. Learn price action and you'll be miles ahead of the competition.
2) Understand money management - you could have the greatest trading system in the world, but it wouldn't mean much if your constantly over leveraging your account. Remember, it's a marathon, not a race. You won't be a millionaire overnight, so there is no reason to risk that much.
3) Don't rely on demo trading for too long - The normal tendency is to trade on demos on until you feel comfortable trading. The problem is that people just abuse the demos. They trade for so long without any kind of risk that they just can't handle when they trade with real money.
4) Maintain your poise - One of the hardest things traders have to deal with is what happens when trades go against them. Certain traders just can't handle this. Expect to lose once in a while, and you won't be so disappointed.
5) Use Mini Accounts When First Starting Off - You need to know what it's like playing for real money, when you get done with demos. But playing with full lots is not the way to do it. Make sure you start off nice and slow.
6) Keep the margin reasonable - If I were to recommend a margin ratio that you should use it would probably be 200:1. It's enough room to play with.
7) Be Prepared When The News Comes Out - Find out what kind of news most market analysts are expecting, and see if the actual meet or exceed analyst expectations. That's the bread and butter of news trading. - 15224
1) Don't use indicators - They are just blocking your view of what's important. Learn price action and you'll be miles ahead of the competition.
2) Understand money management - you could have the greatest trading system in the world, but it wouldn't mean much if your constantly over leveraging your account. Remember, it's a marathon, not a race. You won't be a millionaire overnight, so there is no reason to risk that much.
3) Don't rely on demo trading for too long - The normal tendency is to trade on demos on until you feel comfortable trading. The problem is that people just abuse the demos. They trade for so long without any kind of risk that they just can't handle when they trade with real money.
4) Maintain your poise - One of the hardest things traders have to deal with is what happens when trades go against them. Certain traders just can't handle this. Expect to lose once in a while, and you won't be so disappointed.
5) Use Mini Accounts When First Starting Off - You need to know what it's like playing for real money, when you get done with demos. But playing with full lots is not the way to do it. Make sure you start off nice and slow.
6) Keep the margin reasonable - If I were to recommend a margin ratio that you should use it would probably be 200:1. It's enough room to play with.
7) Be Prepared When The News Comes Out - Find out what kind of news most market analysts are expecting, and see if the actual meet or exceed analyst expectations. That's the bread and butter of news trading. - 15224
