Why Trade Forex?
The Forex market is the only Market in the world that is open 24 hours a day, 6 days a week (Sunday – Friday).
Like many others, the Forex Trading Market can offer lucrative ways to earn a living by Traders who seek to exploit daily or weekly trends, and capitalize on those trends. Forex Trading for Beginners is the best guide, if you’re new to trading. There are some things that everyone should know before entering the market. You can learn more about Forex Trading Strategies for beginners in this article.
Market participants are typically:
- Hedge funds
- and of course, speculators like me and you!
The Forex Market, unlike most, contains almost daily Market moving events involving foreign governments seeking to conduct business via monetary policy, causing MASSIVE price fluctuations in their respective currencies, and it is in these price movements that Forex traders hope to capture a profitable trade..
In addition, the Forex Market has the unique distinction of being the most liquid Markets ever…with daily trading volume averaging over USD 5 Trillion. Yes, that’s a 5 with 12 zeroes behind it!!
With all of these ranking factors, a beginner can easily assemble a profitable trading strategy, and this article is going to show you how.
HERE ARE SOME TIPS OF FOREX TRADING FOR BEGINNERS
Market Timing is Critical To Your Success
The days of floor trading and order-desk trading executions are long gone…today’s Markets are all about speed.
Nimble traders are rewarded at the expense of clumsy traders.
This has led to the rise of electronic and computerized trading, also known as algorithm trading (Algos).
While many newer traders find this to be intimidating, we’re going to show you the hidden footprint that Algos leave behind, that is visible ONLY to the patient trader, allowing you to properly time your trading entries to capture upto a 90% win rate.
Remember this folks: Market Timing is EVERYTHING. Those who tell you that there is no such thing as “Market Timing”…are either talking out their butt…OR…wouldn’t know a BUY/SELL signal if it slapped them in the face.
REDUCE YOUR RELIANCE ON FOREX TRADING INDICATORS
Everyday I’m amazed at the volume of mail I receive from readers who are still puzzled by Price Action and who start freaking out when I tell them to remove all indicators and just go ahead and stare at the naked chart (also known as Naked Trading).
Trading indicators are defined as any of the below:
- Moving Average Lines
These trading indicators were invented by people with nothing better to do with their time, and serve no useful purpose within the context of a beginner Forex trading for beginners.
Take a look at the below charts.
One contains indicators. One does not.
Which one would you rather trade?
Cut your trading losses quickly. Let your winners ride all the way.
This probably seems like a no-brainer.
BUT, again, you would be surprised at the number of beginners who buy the Market, then watch as the Market starts to turn down, and then still hold on to their losing position…even though the Price Action was telling them “SELL…SELL…SELL!”.
In order to succeed as a beginner at Forex trading, you need to follow the pros. This means thinking like a pro. Acting like a pro. Executing your Forex trading strategy for beginners like a pro.
When the market is showing you signs that your position may be a loser…dump that trade and absorb the small loss.
TRUST ME FOLKS…its better to take the small loss than the big loss.
On the flip side, when the Market is showing you signs that your position is a giant winner…don’t be so quick to take your profits. Setup a trailing stop and let the Market tell you when its time to take profits.
Master the basic strategy of exiting your position.
Define your Risk Tolerance on Day 1 of your trading career
Forex traders are drawn to the concept of fantastic riches while putting in very minimal effort.
NOTHING could be further from the truth.
Folks, at the end of the day, Forex trading for beginners is nothing more than sophisticated casino betting.
There will be massive winners. And there will be massive losers. Every single day.
The secret to being a profitable trader is knowing in advance how much you are willing to lose.
Can you stomach a 500 dollar drawdown? What about a 5000 dollar drawn down?
Understand that Forex trading is a business…you have to spend Money to make Money. The spends are when you cut your losses.
Forex Strategy for Beginners can be summed up by totaling up your wins, totaling up your losses, and letting you walk away with bigger wins than losses in any particular trading day.