Any forex beginner should start with research. Knowledge is the most important tool when it comes to succeeding in one’s trading endeavors. Start your research by reading the three best tips for beginners.
Many beginners struggle with forex trading because they don’t take the time to understand the market. When trading forex, it’s essential to understand both the risks and the possibilities to make a profit. When you’re trading forex, you’re trading with leverage. This is exactly why it’s a risky investment and not something you should throw yourself into headlessly.
It’s highly recommended that you take your time to get to know the market – and the currencies you’re going to trade. There are many factors impacting the different currencies and the market, and each currency tends to behave in its own way. If you want to increase your chances of success in the forex market, you should know exactly what you’re doing. You can begin by reading our three tips for forex beginners.
1. Choose the right platform
The trading platform that you choose is of great importance. First of all, you should make sure that you choose a recognized and trustworthy platform. Read reviews to figure out how other traders like the platform. It’s important that the platform is easy to use and has great account features. Look at the currency pairs offered and their customer service. Read much more on forex trading, find more tips and find a great guide to the best and most popular forex brokers at FXForex. By doing so you will not only base your decisions on your own feeling but on real expert advice.
2. Always have a strategy
As mentioned, the most important thing for you as a forex trader is that you know what you’re doing. This is why you should always have a strategy that is based on knowledge and analysis. When you make your strategy, it should be based on the currency pairs that you’re trading and how they behave in the market. A strategy will not only increase your chances of succeeding but will also make sure that you stay within your budget. When it comes to a rather risky form of trading like forex, you should always be very aware of your budget, and make sure that you don’t spend money that you can’t afford to lose.
3. Don’t put all your eggs in one basket
This advice is one that every investor or trader should always keep in mind. No matter what you trade, it’s important that you don’t put all your eggs in one basket. There is more than one reason for this. First of all, it’s about securing your assets. If your entire portfolio or trading strategy is based on only one type of asset, you will be very vulnerable to changes in the market. Also, when you diversify your trading or investment strategy, you will have more chances to make the most of the possibilities that the markets offer. Just always make sure to know what you’re doing and trade responsibly.
This article is sponsored content
Editors’ Picks
EUR/USD hits two-day highs near 1.1820
EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.
GBP/USD reclaims 1.3600 and above
GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.
USD/JPY drops back below 157.00, as focus shifts to Japan snap election
USD/JPY is back in the red below 157.00 in the Asian session on Friday. The Japanese Yen recovers ground against the US Dollar amid some profit-taking ahead of Japan's snap general election on Sunday. The preliminary reading of the Michigan Consumer Sentiment Index report for February will be released later on Friday.
Editors’ Picks
EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates Premium
The EUR/USD pair lost additional ground in the first week of February, settling at around 1.1820. The reversal lost momentum after the pair peaked at 1.2082 in January, its highest since mid-2021.
Gold: Volatility persists in commodity space Premium
After losing more than 8% to end the previous week, Gold (XAU/USD) remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000.
GBP/USD: Pound Sterling tests key support ahead of a big week Premium
The Pound Sterling (GBP) changed course against the US Dollar (USD), with GBP/USD giving up nearly 200 pips in a dramatic correction.
Bitcoin: The worst may be behind us
Bitcoin (BTC) price recovers slightly, trading at $65,000 at the time of writing on Friday, after reaching a low of $60,000 during the early Asian trading session. The Crypto King remained under pressure so far this week, posting three consecutive weeks of losses exceeding 30%.
Three scenarios for Japanese Yen ahead of snap election Premium
The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.
RECOMMENDED LESSONS
Making money in forex is easy if you know how the bankers trade!
I’m often mystified in my educational forex articles why so many traders struggle to make consistent money out of forex trading. The answer has more to do with what they don’t know than what they do know. After working in investment banks for 20 years many of which were as a Chief trader its second knowledge how to extract cash out of the market.
5 Forex News Events You Need To Know
In the fast moving world of currency markets where huge moves can seemingly come from nowhere, it is extremely important for new traders to learn about the various economic indicators and forex news events and releases that shape the markets. Indeed, quickly getting a handle on which data to look out for, what it means, and how to trade it can see new traders quickly become far more profitable and sets up the road to long term success.
Top 10 Chart Patterns Every Trader Should Know
Chart patterns are one of the most effective trading tools for a trader. They are pure price-action, and form on the basis of underlying buying and selling pressure. Chart patterns have a proven track-record, and traders use them to identify continuation or reversal signals, to open positions and identify price targets.
7 Ways to Avoid Forex Scams
The forex industry is recently seeing more and more scams. Here are 7 ways to avoid losing your money in such scams: Forex scams are becoming frequent. Michael Greenberg reports on luxurious expenses, including a submarine bought from the money taken from forex traders. Here’s another report of a forex fraud. So, how can we avoid falling in such forex scams?
What Are the 10 Fatal Mistakes Traders Make
Trading is exciting. Trading is hard. Trading is extremely hard. Some say that it takes more than 10,000 hours to master. Others believe that trading is the way to quick riches. They might be both wrong. What is important to know that no matter how experienced you are, mistakes will be part of the trading process.
The challenge: Timing the market and trader psychology
Successful trading often comes down to timing – entering and exiting trades at the right moments. Yet timing the market is notoriously difficult, largely because human psychology can derail even the best plans. Two powerful emotions in particular – fear and greed – tend to drive trading decisions off course.