Roxen

These are some advice for the beginners at Forex market, given by the active and experienced traders, working at our service. Every trader mentioned some rules, which he considers to be main for the beginners of Forex market. So, we'd like to post such advice there in order to help all newbies on Forex market. Today only advice by only 2 traders have been posted, but we'll certainly add some posts in the nearest future. Here's a piece of advice by the trading system provider "Jolly11":

"Of course, one of the main things is learning to do money management, which will help you to avoid losing your deposit and keep you in a good mood for continuation of trading. The next thing you need to do is working out your own trading system based on positive mathematical expectation. It is said: "If you can't predict, how the market is going to move, your prediction is completely wrong". The trading system should be accurate and consistent. Always use stop-loss and take-profit in order not to lose big money and to exit the market with profit. Notice, that it's useless to put stop-loss smaller than 50 pips, because it will be eaten by the trend's movement very soon and you'll be quite disappointed (you see, I use higher stop-loss in my Forex signals).You are also to use all you analyst's skills to find out, when this or that tendency gonna begin. But never open a position in passed wave with the hope of earning some pips. You'd better analyze the market and find out the beginning of a new wave. And don't forget to follow the rules of your trading system, which is very important. Good luck!"

And there you see some tips by one of the traders, who's passing testing period at our service at the moment:

"Firstly, find out, what currency pair "suits" you. Don't try to trade with big amount of pairs - 2 or 3 is enough. Otherwise you'll be lost among different news, parameters and so on. Secondly, don't lose your temper in case of loss. Sometimes you need to close a position with a loss in order not to lose the whole deposit. Thirdly, never take important decisions in a hurry! Fluctuation of the market will always take place, but being hurried can really damage your capital. Also don't forget to take a rest. If you had a loss, it's better to relax for a while and improve your trading system than start trading in a bad mood. And never retreat from your strategy rules. Try not to use more than 5% of your deposit for trading. Remember, that trading with big part of your deposit can easily lead to complete loss of your funds (such mistake is very often done by beginners.). So, keep trading and good luck!"

You are also welcome to post some common advice for the Forex beginners there. That will be quite convenient and useful for all forum-users.

Day-trading as you already know by now has the power to offer many advantages over a short time lapse. It’s no wonder that so many people get interested in day trading.

A day trader is basically an individual that holds onto their position for a day only. He is usually out of the market at the end of the trading day thus monitoring all trades taken in real time. This type of trading can be very rewarding if proper rules and money management are followed. It comes also with lower risk, due mainly to smaller losses. A lot of new aspiring traders are attracted to day trading because of these particular features.

However, day trading as good as it seems also carries some major disadvantages. You see, a lot of new aspiring traders tend to enter the forex world with one major goal, to make a ton of cash in record time. This mentality usually leads to:

· Over-trading

· Stress

· Fear

All those attributes, if we may say so, may lead to the rapid depletion of your capital.

This happened to me too at in my early stage of trading. This, like it or not, is a common phenomena in trading. We as traders are highly exposed to such flaws and our main goal in the early trading period is to be able to overcome those issues by following a rock solid plan.

To tell you the truth, in my early trading days, I would be glued to my computer the whole day waiting for a trade set-up. I was too scared to miss a trade, so I deem right to stay in front of my PC for nearly 24 hours until the right set up happened. Well, most of the time, I found myself so exhausted that I could hardly think straight. My focus was all out of whack. I was constantly stressed and my social life was slowly fading.

At this point, I knew that something needed to be done if I wanted to build a career out of trading. Besides, my dream was to leave my 9 to 5 job in order to have a better life. If being slave of my computer was the outcome, I would be better off working for someone else.

I took a break from trading for nearly 2 weeks just to refresh my mind and rethink of my strategy to tackle the Forex world. This was not an easy decision as my ego took a beating. However I had to choose either to keep on going and blow my account or reassess my whole approach to trading. The second option was undeniably the one to go for.

This was one of the best decisions I would take to guarantee my success in trading. I wrote down all the things that made my trading worse. Those were what I got out of it:

· Stress

· Over trading

· Fear

· Lack of energy

The four components above were playing a crucial role to my failure in trading. I clearly had to bring some changes that would dramatically reduce the possibility of the above to occur.

My plan, believe it or not, was very simple. I went back to my platform to pin point at what time the market tends to move the most in a day. My thought was that if I could pin point a time where the currency pairs have the tendency to move the most I could start trading at around that same time everyday. My analysis was of great help to my trading as I realize that the London market had a tendency to move some of the currency pairs quite drastically.

From then, I started to monitor the market at the same time everyday and trade accordingly using my strategy. I was amazed by the result. I was making more profit in 3-4 hours of trading compared to trying to trade the whole day. Consequently my stress level decreased, I was in control of my emotion and on top of it all I had still energy left to enjoy life. Trading, to my eyes, was stress-free from then on.

I basically changed one simple component in my everyday trading and that played a major part in my success in the currency world. This is a change that you too may bring to your trading if you want the odds to be stack on your side.

The point of this story is to show you that trading is best done at certain times of the day. This is the time where most banks and large institutions get active in the currency world. They move the market and thereby increase volatility on major pairs.

Volatility = Profit (as far as I am concern)