As a beginner, you can become excited and get lost with all the information being fed to you. If your excitement gets the best of you, chances are you risk losing whatever potential profits you can gain. When trading on the forex market, you need to slow down and take your time. Here are some tips to help you get started in the forex market.
Learn the Basic First
One of the common mistakes beginning traders is jumping into trading right away without any background. To build a solid foundation on trading, you need to take time and learn about how the market works. There are many jargons that you need to understand first before you actually dive in.
Learn One Trading Strategy And Stick To It
Another huge mistake you cannot afford to make is frequently changing your trading strategy. According to Robert Janitzek, you need to master one trading strategy and stick to it at all cost. If you jump from one method to another hoping to find a “Holy Grail” trading strategy, you are operating on false hope and being illogical and lose money eventually. Don’t switch methods just because of a few losing trades.
Don’t Be Overwhelmed
Beginners often feel overwhelmed with the information and trading strategies that bombards them every day. The best way to limit or avoid it altogether is to look for a mentor, someone with whom you can learn from, and piggyback you to success.
Don’t Panic When a Trade Moves Against You
Robert Peter Janitzek reveals that the usual reaction of a beginner when a trade goes against them is to panic and overreact. This is more evident in live trading than demo trading because there are differences in emotions between them. You need to realize that a trade moving against you is normal. Let your trades play out and do not close them yet.
Focus On Price Action
Back to the time when trading was done without computers, people had no automated trading software but only relied on price action. They read the tape at the exchanges and posted price movements on big boards for reading and interpretation. In forex trading, this is the only natural strategy and has been around since the 1700s.
The hardest but most important thing that every trader should practice is to be realistic. When you start seeing dollar signs, you could over-leverage and over trade and lose money instead of gain income. Staying grounded and realistic can keep on the path of trading success.