Money Management is the Most Important
As a beginner you should know that instant success is like winning lottery with 1 in 1 millions chances. So, surviving is the first important aim you should possess. Don’t risk your money more than 3% of trading capital per trade. As a newbie, always ensure you have enough trading capital at least 40 trades.
Always Use Stop Loss as Your Powerful Weapon
Stop loss is your only weapon yet very powerful to save you from deep bottom broke. Stop loss will help you to think more about your moves. Maybe you’re irrationally putting yourself into bad trade position. When you set a stop loss in advance before opening the trade, you can look at your position better. Stop loss also help you to think about your profitable or losing trades ratio and make your unafraid to drain your whole account for bad trade.
Unless You are Lucky, Be Realistic Please!
Well, unless you’re like Jerry who always can escape from Tom’s stranglehold, you should be a realistic newbie trader. Balance you strategy and experience to set your goal. For example, you risk to do average trading strategy on 15 pips to win 30. Through your 200 trades, 50% of your trades reach profit target of 30 pips while the remaining is gone and make you stop loss. So far, you’ve won 3,000 pips (30 pips x 100) and lost 1,500 pips (15 pips x 100). You gross revenue is 1,500 pips total because you need still to deduct the spread. Here you can see and work on average at least each trade nets you 5.5 pips.
Get Connection with Other Traders
Don’t only learn from books or websites. Getting direct feedback and alternative tips from professional traders is the best thing you can get as a beginner. As the experts have more experience, they will know whether your strategy is good or bad moves.
Control Your Emotion
Don’t easily get carried away! Yes, we know that trading is very challenging yet fun and exciting. Think about it like a business, not a play because your money is on stake. Trading is cost you money but will end up earn you good money also.
Although there is no guarantee of 100% success in the trading, but these forex trading tips for beginners is a good way to save your precious money. So, follow them carefully!
