Beginner's Tips

This is just my opinion based upon my own experience.

Risk management

Emotionless trading

Automation where possible

Fundamentals and Technicals are equally important

Trade the majors

Forget about making 100% each month, that's completely unrealistic.

It is better to make a consistent low risk profit over a long period of time, than to try and get rich quick and lose it all.

Making a flat 25% annual ROI on $400,000.00 is $100,000.00 profit.

25% ROI / 12 months = 2.083333 % per month (non-compounding)

$100,000.00 / 12 months = $8333.333 averaged monthly ROI

A person can live a pretty comfortable life on $100,000.00 USD per year.

I will say that learning how to trade forex profitably is very analogous to learning how to ride a bicycle. Just like initially while learning a bicycle there are frequent chances of you being fallen down and being hurt, in the same way while learning stage of forex trading overall you may loose.

But once you learn how to balance the bicycle left and ride while you move ahead on it, even if you try to fall it is very difficult for you to fall. In the same way once you learn how to balance the profits and losses and continue to trade in forex, then it is very difficult for you to loose with some exceptions like sudden news or currency crash etc which are similar to an accident you face on the road and you should not doubt on your knowledge and experience of your learning. Because profit and loss balance is very important since you can't close each trade in profit and each trade in loss even if you try to do so.

So the most important thing is using low and reasonably low risk per trade and using a reasonable stoploss to start with for beginners, then even if you try to loose still it is difficult for you to loose in long run. For example, try to trade with 0.01 lot in a 1000 USD or 2000 USD balance or more with a reasonable stoploss with support and resistance levels , then even a worst kind of trader can't loose in long run though he may not make profit everyday or every week.

But try the same 0.01 lot with a 100 USD balance or 200 USD balance, then a series of losses account will go down and the trader will switch to a new strategy and repeat the process.

So my advice is to use a very low risk and reasonable stoploss(not very high or low) and preferably start with a cent account so that you can't loose a lot from the beginning, but still have the privilege of trading in a large balance.

Professional4X posted:
This is just my opinion based upon my own experience.

Risk management

Emotionless trading

Automation where possible

Fundamentals and Technicals are equally important

Trade the majors

Forget about making 100% each month, that's completely unrealistic.

It is better to make a consistent low risk profit over a long period of time, than to try and get rich quick and lose it all.

Making a flat 25% annual ROI on $400,000.00 is $100,000.00 profit.

25% ROI / 12 months = 2.083333 % per month (non-compounding)

$100,000.00 / 12 months = $8333.333 averaged monthly ROI

A person can live a pretty comfortable life on $100,000.00 USD per year.

Good advice. Interesting to see all the numbers laid out. Shame I don't have $100,000 to start with though

Rohtas posted:

Professional4X posted:
This is just my opinion based upon my own experience.

Risk management

Emotionless trading

Automation where possible

Fundamentals and Technicals are equally important

Trade the majors

Forget about making 100% each month, that's completely unrealistic.

It is better to make a consistent low risk profit over a long period of time, than to try and get rich quick and lose it all.

Making a flat 25% annual ROI on $400,000.00 is $100,000.00 profit.

25% ROI / 12 months = 2.083333 % per month (non-compounding)

$100,000.00 / 12 months = $8333.333 averaged monthly ROI

A person can live a pretty comfortable life on $100,000.00 USD per year.

Good advice. Interesting to see all the numbers laid out. Shame I don't have $100,000 to start with though

You don't need $100,000.00 to start with. It was just an example.
Start small, invest wisely, and allow your investment capital to grow over time.

Managing the risk is the most demandable ability in Forex market where risk is everywhere. My trading career, many times I fallen a great loss due to lack of exact risk management . now I am studying about this

Basically we the traders in particularly the newcomers try to make money very rapidly by using high leverage and practically fall a great loss due to non-sense planning and zero risk management policy, nothing to do with high leverage at all. So, before trading with high leverage we have to know how to manage risk.

its more appropriate go through the school level minimum for 2-3 times, but beginners can do it within very short time just for once , as a result they got nothing

trading with own , its a right one but borrowing money from family and others , its completely a wrong decision, its a mental pain and traders cant focus when trading in practically.

Never borrow money to trade and never trade with anyone else money. It will ruin your trading and your relationship

Irrespective of how many tips given to beginners, usually it is almost inevitable for most of the beginners to loose and that's how market is designed to absorb money from beginners in terms of losses and give it back to professional traders as profits since forex market is a zero sum game.

So till now more than 90% of traders consistently loose money which contributes to the profits of the remaining successful traders.

So if you are a beginner, then you should never even think to make profit and you should only focus as how to loose less while you learn how the forex market behaves and moves. Once you learn to get a balance between profits and losses, then even if you want to loose still you can't loose if it is your money you are trading.

2 truths about making profits in forex:
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1.If you are trying hard to make profit and you are loosing, then still you are a beginner irrespective of how many years you are trading it may be 10 years or 20 years.
2.If you are just waiting for the forex market to give you profit, then you are a professional trader. Making profit in forex must not be hard and if you are finding it hard, then something is wrong in your system or in your trading psychology.

In Fx trading , by and large traders in particularly the newcomers fall a great loss by taking high leverage due to non sense planning and zero risk management policy, nothing to do with high leverage at all. so, I think, before trading with high leverage we have to know how to manage risk.

Learning is the foremost ways to keep survive in this volatile trading place in a proper way. But sorry to say maximum traders who are particularly newcomers try to make money from here without learning. As a result they become loser when trading practically. It would be great if we choose the broker which always ensures best trading environment for learning this trading place by providing exclusive educational facilities.

I try to keep to strict trading programme. 3 months learning (no trading), 3 months demo account then 3 months on micro account. I am 4 months in and feel happy with my choice. Not yet profitable on demo but this structure gives me confidence

according to me, its much important , any smart initial amount can make you more confident when trading in practical. so we cant avoid the importance of this at all.

I have mentioned this in some other thread and I am repeating this here for beginner traders.

If you are a beginner, then just continue to trade in demo account as long as you are not consistently profitable in your strategy for 6 to 12 months.

Then, check if your strategy can meet all the below 5 conditions:
1.Good pip expectancy of 5 to 10 pips per trade or more
2.At least 100 trades per month
3.Low drawdown of around 10%
4.Minimum monthly return of 5% to 10% per month
5.Minimum track record of 6 months or more.

If you meet all the above 5 criteria, then you don't need to trade live account. Instead, you can simply continue to trade in that demo account and if needed then connect your demo account to a live account through a trade copier software and still you can make profit through trade copying to live account.

At least you can provide trading signals through signalstart and make money or join a PAMM account of broker and there are many more options.

If you follow my steps, then you can be successful in trading with zero investment of your own. The only thing required is patience.

So it doesn't matter whether it is a demo account or live account, but all the above 5 points must be satisfied since each and every point is important and has a reason behind it which describes clearly that there is a 80% to 90% chance that you are already a successful and professional forex trader irrespective of demo or live trading.

But if you jump from demo account to live account trading within few days with the greed to make money quickly, then you can keep on loosing and repeating the same cycle for ever for entire lifetime and may loose everything and still may not be a successful trader.

the most important trading tip , i think try to manage your money when trading in practical , only money management can change your trading life , otherwise no way to survive in here with successfully. 

There are many important things we the traders have to focus when choosing a broker, from all I think spreads is an important financial tool which an investor should consider when choosing a broker, if we have lowest trading spreads we the traders can make profit with certainly by using any kinds of trading strategies in particularly the scalping that brings profit in a short time.

The beginner should use demo account minimum for three months, sometimes many brokers organize demo contest with real money prizing. Newcomers can join here. It could be great to acquire real trading exeprince.

Some 'beginners-tips' from me:
- start with a demo account, learn the best strategy for your own mindset (everyone is different) in more than 6 months. after that try with a low budget first (even if you could afford more)
- always use low leverages (if trading outside of MetaTrader)
- always use microlots first (depending on your account (your max. account leverage) and asset leverages (assets need to be tested))
- patience, a lot of patience! if you trade the 'professional way' with sl and tp, always respect them and also the charts. if you trade the 'semi-professional' or 'hedged way' use microlots or low leverages only combined with loads more of patience and professional charts analytics (best without any indicators) on higher time frames (D1, W1)
- never let your margin-level come to less than 1000% (if you trade with 0,01lot; with higher lot-sizes you might need to use an even higher min. margin-level), if it's lower it's gambling (you won't have any chance in a flashcrash scenario)
- never be a greedy person (also outside of trading); make some trading plans (maybe start a private trading journal with goals like 100, 50 or 30% per month, if not reached set them lower)
- use only 1 of your favorite indicators (and learn how it could work in your favor)

Examples:
- MetaTrader account with 1:500 leverage: always start with 0,01lot if your account is lower than 2k, use 0,02lot if the account is lower than 3k, and so on (only try with 1lot (or higher) if the account is higher than 100k)
- with non-MT accounts: if in the EU use the ESMA's max. leverages, if outside: use the same max. leverage as with an ESMA account (e.g. 1:30 for currencies, 1:10 for oil, 1:2 for cryptos and stocks, and so on)