How To Start As A Best Forex Trader
It is estimated that 95% of all new Forex traders who give online Forex trading a shot lose money on their accounts within a short amount of time.
The reason as to why failure occurs with such frequency is because new Forex traders enter the trade with poor education of what online Forex trading actually involves.
Other common reasons include buying into the hype surrounding the industry, not having sufficient discipline during trades and letting greed take over, and finally, not having an experienced mentor who can guide them on to a profitable path.
Every aspiring Forex trader should keep in mind the following five basic tips:
1. Learn The Fundamentals
Those who rush into the business end up on the losing side. Take time to educate yourself with the fundamentals of Forex and the benefits will more than pay off in the long run for the time spent learning. Become familiar with the fundamental trading methods and common indicators used such as price pivots, moving averages and Fibonacci retracements just to name a few. Find a suitable mentor to guide you through the initial learning curve.
2. Don’t Buy Into The Hype
Treat Forex as a real business that requires planning, discipline and persistence before profitable results can be achieved. Many beginners enter Forex with false ideas. Those are mainly due to the exaggerated claims made by various groups within the industry.
3. Begin with a Demo Account
Do not rush to open a live trading account. Those that do this within the first month almost certainly lose their trading capital. You need to run a demo account within the first few months. This will give you a feel of how the markets work in the long run. Make sure that the demo account is identical to the live account.
4. Stick to A Single Currency Pair
Trade in one currency pair until you become proficient with it. The most popular one is the Eur/Usd because it is the world’s most popular due to its low volatility and decent daily range. Although your Forex broker might offer several currency pairs and other commodities, sticking to a single currency pair is the best policy.
5. Avoid Automated Trading Robots
The main problem with these programs is that they don’t let the beginner learn facts about best Forex trading and it is possible to lose your trading capital very quickly. In reality, robots are only as good as the default parameters they start with. As a beginner, you are unlikely to the judgement of a best Forex trader for this or when to close a trade profitably.
To find out more about how to become a best Forex trader and the aspects of a best Forex trading platform, visit: http://www.bestforextraderinfo.com
Author: Michael Torc
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