Learning how to successfully trade Forex can be complicated for beginners. Most people want to get rich overnight, no matter how unrealistic it may sound.
The world of Forex trading can be a little overwhelming, especially if you are new to the game and don't know the rules yet. You need to dip your toes in before you go any deeper.
The good news is, we've got your back!
We've compiled a list of 20 Forex tips for beginners to help you along your trading journey in 2018. If you already have experience with Forex trading, it's always good to remember the basics.
1. Choose Your Broker Wisely
Choosing the right broker is half the battle. Take your time to check reviews and recommendations. Make sure the broker you choose is trustworthy and suits your trading personality.
Remember, there are lots of fake brokers out there who will only stand in your way. Go for an authorised broker with a licence.
If you want a reliable and trustworthy broker, look no further than Admiral Markets!
2. Create Your Own Strategy
No list of currency trading tips is complete if it doesn't mention strategies. One of the most common mistakes beginner traders make is not creating an action plan.
Figure out what you want to get out of trading. Having a clear end goal in mind will help with your trading discipline.
3. Learn Step-by-Step
As with every new practical learning activity, trading requires you to start with the basics and move slowly until you understand the playing field. Start by investing small sums of money and keep in mind that slow but steady wins the race.
4. Take Control of Your Emotions
Don't let your emotions carry you away.
It can be very difficult at times, especially after you've experienced a losing streak. But keeping a level head will help you stay rational so you can make competent choices.
Whenever you let your emotions get the better of you, you expose yourself to unnecessary risks.
5. Stress Less
This is one of the Forex tips that sounds really obvious – because it really is.
But guess what? Trading under stress generally leads to irrational decisions and in live trading that will cost you money.
Therefore, identify the source of your stress and try to eliminate it or at least limit its influence on you. Take a deep breath and focus on something else.
Every person has their own way of overcoming stress – some listen to classical music, while others exercise. Listen to your mental health and learn what works best for you.
6. Practice Makes Perfect
Of all the Forex tricks and tips for beginners, this is the most important. You will never succeed at anything on your first try. Only constant trading practice can yield consistently top results.
But you probably don't want to lose money while learning the basics, right?
Luckily for you, trading on a demo account costs nothing to set-up and not a cent more to use, for as long as desired.
7. Psychology is Key
Every trader is a psychologist at heart.
When you're planning your next move, you have to analyse market movements and your own psychology.Do you show signs of confirmation bias? Did you make a trade out of frustration? What made you choose that particular currency pair?
Mastering your psychology will guard you from many losses, along the trading development path.
8. No Risk, No Success
Not even Forex trading tips and tricks can guarantee you success. When you decide to become a trader, you should have already accepted the possibility of failure.
In case you didn't – here's a reality check. You won't make profitable trades 100% of the time.
Don't let false advertisements get in your head, either. Instead, be realistic about your Forex trading methods and goals.
9. Patience is a Virtue
When it comes to trading, the old saying is not just a cliché.
True success is never instant. It's the result of consistent work and planning. Many beginner traders look for an easy, fast path to profit. Don't bother – it doesn't exist.
10. Continuous Education
Each day you trade, there's a new lesson to be learned. So look closely at the Forex market and keep all our tips in mind. Start analysing news, trends, and financial processes and don't neglect the Forex basics.
Most importantly, study, then practise... and study some more. Studying will require a lot of time and effort, but it will pay off in the long run.
For starters, you can visit our
free education centre for more Forex tips:
- Check out our insightful webinars;
- Start your trading journey with Forex education for beginners;
- Find out more about Forex basics for everyone.
11. Take Breaks
A great Forex tip to follow daily is to take time away from your computer, especially during stressful trading sessions. When you have several computer windows open and multiple data streams to analyse, you can naturally feel pressured.
In this case, it's better to take a break and walk away for a while. Give yourself some time to collect your thoughts. When you return to your desk, you'll be calmer and more able to focus.
12. Trends are Good for You
One Forex market tip to follow is to learn about trends. The ability to spot trends is a valuable one.
While we don't recommend jumping on the trend bandwagon every time, outright ignoring the trend is a recipe for disaster. Trends can show you what is coming, so you can pro-actively adjust your trading rather than reacting when it's too late.
13. Look for Competitive Conditions
It's important to choose top-notch service conditions and get favourable spreads. We at Admiral Markets offer both.
14. Plan in Advance
Forex trading is not a gamble – it's a strategic game. Carefully calculate your next move before you act.
You can begin formulating a plan by asking yourself some challenging questions:Have I accounted for the possibility that I may lose? What's my plan B for different scenarios?
To be successful at Forex trading, you have to expect the unexpected.
15. Know the Charts
You will be trading on many different markets and will need to quickly understand the information you analyse for each trade. There are numerous tools to make trading easier, but nothing is more time-efficient than charts.
Charts give you fast access to numerically-heavy data as a simple visual, so you don't have to scroll through it.
We encourage you to learn more about Forex charts and how to use them:
- Most frequently used Forex chart patterns
- How to read Forex charts
- Best Forex charting software
16. Don't Run out of Chances
Eagerness is good, but there is a limit to everything. If you trade too much, you are probably hurting your chances of achieving success.
Overtrading usually leads to lower focus and careless trades.
As you develop your trading plan, indicate the maximum amount of trades you will make per day or week.
17. Greediness Leads to Risks
Greediness can make you take unnecessary risks as well. Set the maximum loss and desired profit in your trading plan. When you hit this level, stop and don't go for another trade.
When it comes to fund management, this is one of the most important Forex tips and tricks to follow.
18. Use Stop-Losses
Our Forex daily tips don't just focus on general recommendations. We also want to mention valuable tools, such as the highly rated stop-loss.
Not setting a stop-loss is basically giving you an excuse to keep a bad position open (because you're hoping that the situation improves). But bad situations rarely improve, and neither will your capital if you don't wise up fast.
A correctly placed stop-loss eliminates the risk of losing all of your money on a single bad trade. Stop-loss is especially beneficial, when you don't have the ability to close positions manually.
To find out more about stop-losses, don't miss the following tips:
- How to use stop-loss and take-profit in Forex trading
- What is stop-loss in Forex trading and how to set it
- Forex stop-loss strategy
19. Analyse Your Trades
Another daily Forex tip to follow is to keep a journal of your trading activity. This will help you monitor your performance and find patterns in your trading.
Basically, it's easier to learn from past mistakes when they are jotted down. Keeping a journal also improves your discipline. Be sure to write down everything and be honest about it, as you have to be your own biggest critic.
One of the essential tips for Forex trading is to flexibly adjust your strategy. Be willing to try out new things and aim to improve your trading. The FX market is constantly evolving and so should you.
Our MetaTrader 4 Supreme Edition (MT4SE) free for all live and demo accounts brings you the most advanced tools to improve your trading experience. With MT4SE, trading is made handy with a mini terminal, trade terminal, tick chart trader, indicator package, trading simulator, and mini chart.
Don't let Forex currency trading frighten you into giving up, when it feels like the odds are against you. Instead, try to remember that Forex success is based on a mixture of preparation and stubbornness.
As mentioned in our Forex Trading Golden Rules article, "FX trading takes consistent discipline to yield success". These Forex tips and tricks will help you prepare – the rest is up to you.