5 tips for new forex traders

[John Hampshire]

5 tips for new forex traders

Forex trading is full of opportunities but also riddled with pitfalls. The thrill brings in new traders constantly but most likely they are there for the easy money that was promised in an ad somewhere. Unfortunately, these riches are available only for a lucky few who get it right on the first trade. For all the rest of us being careful, having a solid trading plan, good trading conditions by the broker and low fees are a must to stay profitable. So here are 5 tips that could help you push your trading career to the right direction.

1. Start with a demo account. When you first go out to the world of forex you will have the risk free opportunity to trade on a demo account. This will give almost identical conditions for trading a real portfolio with all the ups and downs of the market. Just be sure that you treat the money on a demo as you would on a real account. This will give you a realistic feeling what could happen to your hard earned cash. Caution though when using the demo to judge the performance of trading systems which have a large number of trades, this is one place where the real results can later be lower as slippage comes to play.

2. Choose a broker that gives you low trading costs. A big part of any forex strategy staying profitable is the cost you pay on every trade. This is especially true to very active trading styles making 5 or more trades a day. These days the low end of commissions can be as little as $2 per $100,000 traded.

3. Don’t be lured in by huge bonuses of 100% and more by brokers. A good broker might give you a nice boost to start with a 25-50% bonus and you have to appreciate it as brokers give away their profits even if their trading costs are already the lowest in competition. But don’t run for 100%+ bonus offer as attractive as they may sound, these are mostly cold calculations by low moral brokers to lure you into making large deposits after which you will be riddled with fine print in conditions, withdrawal restrictions and high commissions. You have to understand that these brokers will want to make their money back from you as fast as possible.

4. Look for ECN/STP brokers. A broker using either of the technologies is more likely to be on your side. Why? Because they don’t keep your trades in house. A STP or straight through processor will send your trades to the open market place and has nothing to win from your losses than a sole B-book broker which trades against you and wins everything you loose and also loses everything you win. You can see the conflict of interest here as they have the upper hand here.

5. Don’t always go for the highest leverage accounts. While some brokers will offer you 1:1000 leverage on your money this also increases the risk both for you and your broker. Leverage like that means that it is solely backed by the broker you trade with as no prime brokers give leverage like that to the end user serving forex broker. This means it is not doing STP (read point number 4) and just wants you to lose as fast as possible for their gain. A leverage of 1:200 or less is beyond most people’s needs and is something you should go for. For comparison US regulated brokers aren’t allowed to give more than 1:50 leverage.

Written by TradeWiseFX Team -

Source - 5 tips for new forex traders | TradeWiseFX

[Umama Rana]

By and large traders in particularly the newcomers fall a great loss by taking high leverage. In my trading career, for avoiding risk, I at all times like to trade in a small leverage in spite of having 1:400 leverage that always make sure my trading broker MXTrade. But, in my demo trading I took high leverage to see the performance how it works.

[ahmadvipro]

I agree with point number 4. Trading using ECN or STP model is very profitable for traders, especially if the broker guarantees Average Low Spreads (Vipro Markets forex spreads starting from 0.0 pips), no re-quotes, All Encouraged Strategies and Positive Possibility Slippage. I guess this makes trading becomes more comfortable

[uncle gober]

I think for number 4, we can choose a brokers that provide for the needs of traders starting easy registration and verification and fast. After that, the trader would be more comfortable if the broker provides a fast platform environment without any limitations as provided by TICKMILL. Finally, the other main requirement is the system of withdrawal and deposit transactions easy, complete and quick process

[Tanzil Al Banna]

Very useful post! But I seem, new traders should concentrate on only which broker has active educational programs alike TradingBanks broker. Because, I did not need any trainer actually as I found all kind of educational facility from this helpful trading broker. Even, now I get live market analysis from their expert team. That’s really great experience for me to trade with TradingBanks broker.

[Umama Rana]

For leading a knowledgeable trading life, we the newcomers have to choose in regulated trading broker which guarantee their clients funds, customer service, proper financial transaction, free demo account for practicing and much more. I have chosen MXTrade as my trading broker because of these real trading facilities that’s make my trading life is very much comfortable and secure.

[ahmadvipro]

A beginner should have a great desire to learn and try to use the correct trading concepts. I am now trying to maximize it. I'm still learning to use scalping techniques and Scalping technique requires the ability to analyze quickly intervening and precisely. I tried to use a broker who has a strict regulation on Vipro Market

[Umama Rana]

We the traders in particularly the newcomers are try to earn money without learning. as a result almost 90% trades are loser from this volatile trading place due to lack of accurate trading knowledge. so, we have to choose in regulated trading broker which for all time make sure best trading environment for acquiring proper trading knowledge by providing real educational facilities.

[Money Morkel]

In Fx trading, each trader has a choice of the broker to be used, should the trader can choose a broker that is more appropriate to the concept of trading that will be used, if you love scalping , should choose the broker that allows trading concept such as this. As a scalper, now I am using Trade12 broker due to lowest trading spreads 0.1 pips.      

[ahmadvipro]

It's not easy and at the same time, it is easy. It is a matter of knowing what to do with it. In the widest sense of it, the trader should learn to see Forex as a place where getting it is not always as rosy as a lot of people who think in that direction because it is a place where predicting isn't always easy. so with ViproMarket must be prepared with nicely in market

[uncle gober]

Forex is a business that is not easy because forex is a business that has a lot of risk. Therefore, we need to continue to learn and practice trading so well that we will be able to get profit in forex, therefore we need to learn and practice many trading well so that it will benefit us

[Joy Bahadur]

The newcomer practically don’t believe the importance of demo trading at all, but it is the master place to acquire all basic fundamental knowledge which is very supportive to continue a live trading in a proper way.      

[uncle gober]

Trading skills can be improved by as possible so we can get the maximum results. A trader should certainly strive to make better trading skills honed. Using the demo account will also give us the experience to be better prepared when trading

[Money Morkel]

I don’t consider high leverage at any risk, if there is any risk; it is completely with non-sense planning and zero risk management policy, nothing to do with high leverage at all. I always use 1:100 leverage for avoiding risk; in spite of having up to leverage 1:400 leverage that always make sure my trading broker Trade12.  But, in my demo trading, I took high leverage to see the performance how it works. 

[uncle gober]

To learn trading in forex and strive to the maximum did not have to spend money in large numbers first but adjust to our ability. In addition, the existing facilities demo account can also be used by traders. All that should really we maximize the best possible way.

[Money Morkel]

In spite of having most powerful analyzing trade knowledge  that’s not possible at all to make profit constancy without having a reliable support from a regulated trading broker which for all time make sure best trading environment for their clients by providing exclusive trading facilities.           

[Natural Mess]

2 hours ago, Money Morkel said:

In spite of having most powerful analyzing trade knowledge  that’s not possible at all to make profit constancy without having a reliable support from a regulated trading broker which for all time make sure best trading environment for their clients by providing exclusive trading facilities.           

 

 

 

 

Yeah Brokers plays a vital role in earning in Forex Trading, it is better to choose them wisely and after checking their past records.

 

[uncle gober]

anything that good preparation will surely give good results eventually. Similarly, in the case of live trading activity, which has been my experience yourself when trading in TICKMILL that maximum preparation was indeed deliver results as I expected.

[Joy Bahadur]

The beginners actually kick off their live trading without any learning. And they fall a great loss when trading due to lack of exact trading knowledge. As a newcomer, I have chosen MXTrade as my regulated trading broker which for all time make sure best trading environment for acquiring most powerful analyzing trade knowledge by providing exclusive educational facilities with free video tutorials.  So, my trading life is very much knowledgeable. 

[Money Morkel]

When looking for a broker there are many things that you have to check.  According to my trading experience, I will be looking for first of all the broker is regulated or not. Then I will see their deposit and withdrawal system how it works.  Now, I am using Trade12 broker which is regulated and for all time make sure security of funds at any deposit with easy withdrawal system without long time process.     

[Natural Mess]

Selecting a broker would be the most important decision of any trader. All his profits and future depends upon this decision.

[Joy Bahadur]

Actually, we the traders who are particularly scalpers have to choose in regulated trading broker which for all time make sure lowest trading spreads which is very supportive to make profit with certainly by using any kinds of trading strategy in particularly the scalping that brings profit in a short time. 

[uncle gober]

In forex trading, the good trading strategy is indispensable that is why we need to continue to improve trading strategy very well and continue to improve skills well by trying to take advantage of trading with a demo account or with the contest demo of TICKMILL

[Money Morkel]

Choosing a best broker is not a simple task, because there are almost thousands broker in online retail market and most of them are found to be scams. Regulated trading broker can be chosen for leading a secure trading life with certainly. because regulated trading broker always ensures security of funds at any deposits with a wide range of trading technologies.    

[ali200]

Every new trading always willing to learn forex and should learn always new techniques of Forex. Demo trading always helps a new trader to get some good experience practicing more and more with demo trading. A new trader can loss his money in the beginning of his trade due to lack of knowledge and also they mainly do not have good strategy and planning. So he should have a working strategy.

 

 

 

http://www.forexstrategieswork.com/4-hour-rsi-bollinger-bands-forex-trading-strategy/

 

 

 

 

 

 

 

 

 

Edited October 23, 2016 by ali200