Top 5 Forex Trading Tips For Beginners

we see new traders coming to the forex markets all the time what would be your bit of advice for them to take it easy and not want to double your money within a week firstly secondly to really draw the internet and literature and get a handle on strategies that work a lot has been published stuff is out there find it, and then appropriate it test it out and don’t just test that in live trading actually get historical data on a spreadsheet and look at it, if you’re more inclined to programming than try things out otherwise you can always look at it visually on a chart and also a lot of people start trading out on a demo account which is fine, let’s say you don’t have the money, but then keep your demo account realistically a lot of people make the mistake of starting out with a million dollar account or a hundred thousand dollar account, but that’s just not the kind of money they’ll have to invest and all of a sudden they come to the real world they think whoa there’s something different here and of course it’s different and you’re not going to make it the other one is rather than with a demo account start out with a trial account and, so for instance, if you have only a hundred or two hundred pounds to spare that’s still great, because nowadays brokers allow you to trade in very small size I mean some brokers allow things called nano accounts where a pip move is only a cent move, so you can imagine currency moves against you by 200 pips which is a very big move, if you’ve only lost $2 which is only 2%, so that’s a great way to do it the other one is should micro Lots meaning that for every pip move you only have an exposure of ten cents on your piano even that’s a great way to start out learning, but as long as you learn for real that’s the key important question, because what’s interesting is people don’t equate the size of the loss as being important it’s the actual sign of the PML, if it’s a plus or minus you’ll find people getting equally angry about losing $10 as about losing $500 which is actually really interesting, so people get more angry losing $10 on some peanut account they run and spending $10 on a latte and a muffin down Starbucks and that’s incredible, so ultimately don’t say oh just, because I have a hundred pounds I can trade yes you can you can practice there is of course the other downside that by only turning on two pounds the psychological stimulation is in there, because obviously you’re not going to turn 102 a million within the next six months.

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