10 Lessons To Learn In Forex:
1) Learn All Basic Terminology - Pip, Lot, Margin, Spread, Leverage, Base currency, Rollover etc...
2) Demo Trade For At least 1 Year - Then Trade Low Lot Size To Start Real Trading With, When you are ready.
3) Risk Management Is #1- Always Control Risk/Reward (keep all trades to 1% to 2% of your total account).
4) Always Have A Strategy/Plan- If Serious Follow It always. You want to demo trade until you find one which has a positive win rate over 100 or 1000 trades.
5) Try Price Action Only Charts- Naked Charts Tell You Everything. Start learning and even real trading with money on just price action charts. You can add Fib retracements & extensions, trend lines, support, resistance, etc. over them as needed.
6) Journaling Trades To Learn- To Find An Edge & Answer Q's. You want to put things like the following in a forex journal: pair trades, buy or sell, price entered, stop loss, exit price, loss or profit, reason whey you took trade, etc...
7) All Indicators Are Lagging-They Tell You Past Not Future. Yes, you can use indicators & some are useful in trading, but depend on time frame, etc.. but they are unnecessary in forex trading.
8) Scalp/Day trade On Higher TF's-Easier Using 1Hr, 4Hr or Daily. Any timeframes under 1 hour should be used to get a better entry into a trades and also to use a tighter stop loss, but using 1hr, 4hr & daily should be used to find quality setups that match up with your strategy and/or plan.
9) Learn Candlestick Language-They Give You A lot Of Info. Look at naked or just price action charts on any timeframes, what do you see? Candlestick bodies and wicks/shadows, reversals, times when same pairs tend to have trending or sideways price action. Buying/Selling pressure & trading patterns, etc...
10) Forex Trading Is A Marathon - Not A Sprint Race. Trading Forex can be a full time job, if you are serious and treat it like a business. The slow approach is best one to trade with- let your account slowly build up, using compound interest, by controlling risk and reward per trade to 1% to 2%, with a winning strategy/plan or having a profitable win rate in trading, your account will go higher then you think- have no fear, no greed & have patience.
1) Learn All Basic Terminology - Pip, Lot, Margin, Spread, Leverage, Base currency, Rollover etc...
2) Demo Trade For At least 1 Year - Then Trade Low Lot Size To Start Real Trading With, When you are ready.
3) Risk Management Is #1- Always Control Risk/Reward (keep all trades to 1% to 2% of your total account).
4) Always Have A Strategy/Plan- If Serious Follow It always. You want to demo trade until you find one which has a positive win rate over 100 or 1000 trades.
5) Try Price Action Only Charts- Naked Charts Tell You Everything. Start learning and even real trading with money on just price action charts. You can add Fib retracements & extensions, trend lines, support, resistance, etc. over them as needed.
6) Journaling Trades To Learn- To Find An Edge & Answer Q's. You want to put things like the following in a forex journal: pair trades, buy or sell, price entered, stop loss, exit price, loss or profit, reason whey you took trade, etc...
7) All Indicators Are Lagging-They Tell You Past Not Future. Yes, you can use indicators & some are useful in trading, but depend on time frame, etc.. but they are unnecessary in forex trading.
8) Scalp/Day trade On Higher TF's-Easier Using 1Hr, 4Hr or Daily. Any timeframes under 1 hour should be used to get a better entry into a trades and also to use a tighter stop loss, but using 1hr, 4hr & daily should be used to find quality setups that match up with your strategy and/or plan.
9) Learn Candlestick Language-They Give You A lot Of Info. Look at naked or just price action charts on any timeframes, what do you see? Candlestick bodies and wicks/shadows, reversals, times when same pairs tend to have trending or sideways price action. Buying/Selling pressure & trading patterns, etc...
10) Forex Trading Is A Marathon - Not A Sprint Race. Trading Forex can be a full time job, if you are serious and treat it like a business. The slow approach is best one to trade with- let your account slowly build up, using compound interest, by controlling risk and reward per trade to 1% to 2%, with a winning strategy/plan or having a profitable win rate in trading, your account will go higher then you think- have no fear, no greed & have patience.