He has a monthly readership of , traders and has taught over 20, students. As a beginning forex trader, you can easily get lost, confused or overwhelmed with all the information you are bombarded with on the internet about trading. The following 10 forex trading tips are things that I wish someone had told me when I first began trading. So, with that in mind, I am giving you ten of the most important trading tips for a beginning or any trader to absorb before getting started in the market.
Many beginning traders try jumping right into the market with no real background knowledge on the markets they are trading. You can gain this knowledge by taking my free beginners forex trading introduction course. One of the biggest mistakes I see beginning traders make again and again, is changing trading methods too often.
If you are using a logical, common sense trading method like my price action method , you need to really learn it and master it before you do anything else. Any method will have a certain amount of losers over a sample size of trades , this is normal and part of trading.
You cannot let losing trades affect you too much; you really do need ice cold discipline to excel at trading. The best way to limit this or avoid it altogether, is to find a mentor, someone to learn from, and piggy back off their success.
This one is big, because most traders, especially beginners, freak out or over-react at the first sign of a trade moving against them. This is much more of a problem in live trading than demo trading, due to the differences in emotion between them, but it is a problem and it needs to be addressed. If I had freaked out and closed them out before they hit my stop loss, I would have not only lost money, but I would have lost a lot of profit too. Doing nothing with your live trade is usually the best and most lucrative move, meaning set and forget it.
There was a time once, believe it or not, when people traded without computers. How do you think they did that? They used to read the tape at the exchanges, or they would have the price movements posted up on big boards to read and interpret. They were interpreting price changes or price action. My unique take on price action trading has worked well for me and if you follow what I say in my course and use extreme discipline and logical thinking along with patience, it can work for you too!
No need to clutter up your charts and mind with a bunch of messy and over-complicated indicators or news events. Perhaps the hardest but most important thing for a new trader to do, is to be realistic.
Can you make a boat load of money trading the markets? Perhaps no other profession in the world has as much upside potential as trading. Being grounded and realistic is what will keep you on the path to trading success. Trading with high frequency opens you up to a world of emotional trading mistakes that will destroy your trading account and your self-esteem.
To understand why more clearly, check out this article on high frequency vs. You need to learn how to interpret and trade the price action on the daily chart time frame before you do anything else. If you place them too close you will get stopped out for a loss before the market really had a chance to move in your favour. In other words, your trade idea may have been right, but because you placed your stop loss too close, you got stopped out before the move you were anticipating occurred.
How to place stop losses. How to use the ATR for stop loss placement. Thanks Nial for giving us this informative article. These are such helpful tips for me. This is really helpful for me. Thanks keep posting like this. Today is day three of my very first introduction into this Forex trading.
It is very exciting, not real at all to me yet, and scary at the same time. Thank you for taking the time to write this article for the new guys. I can only wish to be a disciplined and dedicated learner.
Keep the good work up Nial!!!. I just got your course in May and have been implementing the simple approach you use. They key for me was properly sizing my trades and being patient enough to wait for set-ups to hit me over the head.
Almost all beginners, even some seasoned traders , are guilty of one or more of the above. Its good to read this article again and again just to remind us what to do and what not to do. Thank you Nial, what you say is very true. I highly recommend your course to any beginner and all those who wish to keep on learning. It contains valuable tips one can put into practice. Thank you for sharing all your expertise. Thanks coach, I love to read all your articles , in fact I have read them all many times over, and every time they inspire me even more, it has been a tough road for me but I am improving all the time, I know and I feel it that I will get there.
Another helpful, must read article especially for beginners. If only more people knew the vast amount of incredibly honest and effective Trading knowledge on this website that was forged through years and years of experience in the Market.
And that is what is great about you. Pat, thanks for your kind words of appreciation and support. In fact, today we have earned the largest readership of any forex education site online. Hi Nial Good advise, if you ignore the basics you can find yourself in a loosing run and blow your account.
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Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in forex, futures, and options and be willing to accept them in order to trade in these markets.
Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice.
We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results. Learn the basics first Many beginning traders try jumping right into the market with no real background knowledge on the markets they are trading.
Learn one trading strategy, stick with it. Focus on the price action. Be realistic Perhaps the hardest but most important thing for a new trader to do, is to be realistic. Focus on the daily chart You need to learn how to interpret and trade the price action on the daily chart time frame before you do anything else.
Here are a couple of articles to help you with stop loss placement: How to place stop losses How to use the ATR for stop loss placement 1. Christmas Trading Course Special: Checkout Nial's Professional Forex Course here. Narnolia Securities Limited June 8, at 7: Chris W January 20, at 6: You did good article. It has helped many newcomers in forex world. Prince Chukwuemeka Epum March 2, at Jotex July 10, at 1: Jendy Jasper July 9, at 3: Chaminda July 8, at 3: Another astonishing article thanks Nial Reply.
Nial, should i focus to 1 Pair only? Mark July 8, at 9: Brian July 8, at 8: Thanks Nial, I always learn so much from your articles. Matt July 8, at 5: Gilbert July 8, at 3: Ben July 7, atMore...