10 tips for beginner traders
Millions of people all over the world earn money on Forex. You want to try yourself at trading, but don’t know where to begin? Are you afraid of losses? Do the rules of the currency market seem too complicated to you? The head of the analytics department of FX BAZOOKA Elizaveta Belugina offers 10 simple rules to begin trading successfully and also recommends the services of Forex broker FBS specifically for beginner traders.
- Set a goal for yourself and evaluate your resources
Determine what results you want to achieve and how much money you are able to invest in trading. It is also important to understand what amount of money you would be willing to risk: being an inexperienced trader, it is not recommended to trade with money you couldn’t afford to lose. It is better to start with small sums and gradually increase the stakes.
- Learn to trade
Don’t neglect tutorials – they will help you avoid many mistakes that beginners often make. There are many websites with educational materials available nowadays. However, in order to be successful in the long term, you need systematic knowledge, not bits and pieces.
We recommend the informational and analytical educational resource FX BAZOOKA – it contains useful and structured information about Forex, and many experts with years of experience will be ready to answer your questions.
- Design a trading system
In order to consistently make money on the market you need a system – a set of rules for entering and exiting the market. You need to understand what kind of trader you are – this wholly depends on your personality. For example, if you are uncomfortable with going to sleep with an open position, perhaps you should consider trading during the day.
Before trading on a real account try out your system in a risk-free environment – open a demo account with FBS. More than that, you can even earn money trading on your demo account – participate in the FBS Pro contest that has a prize fund of $1000: trade for two weeks, become one of the five top traders and receive a money prize.
- Don’t forget security measures
Even a trader with the most perfect trading system in the world can suffer a failure on Forex without good risk management. These are things like strategic use of leverage levels, issuing stop-losses, choosing an optimal balance between risk and reward and other steps that can help you reduce possible losses on the market.
FBS also offers an effective tool for trade security – the funds insurance service. You can insure anywhere from 10 to 100% of your funds for free and in case you lose the company will compensate you.
- Find a broker who speaks your language
Choose a broker with profitable trading conditions for beginners and make sure that the company provides support in your native language.
FBS provides customer support in ten different languages. They present a variety of profitable offers for beginner traders. Pay special attention to the “Bonus 123 $” promotion: you open a special account and $123 are already deposited to your balance: you can start trading for real and receive your first profit without investing and risking your own funds.
If you’re feeling more sure about yourself, make use of the “100% bonus on deposits” promotion: make a deposit and FBS will double it, which means, you will have more opportunities to make profit.
- Make use of beginner accounts
Choose a type of trading account and level of leverage that fits you best. Beginners are recommended to use cent- and micro-accounts.
With FBS you can begin with a cent account with a minimal deposit of $1 and a decreased floating spread from 1 point. The risks of trading on this kind of account are minimal and you can gain valuable experience.
When you start feeling more comfortable, open a Micro-account with a starting deposit of $5 and a fixed spread of 3 points.
Then, as you gradually gain more experience in trading, you may choose to open a “Standard” account, Zero Spread account or an “Unlimited” account – all of which have their own advantages.
Speaking of leverage levels traders should also move from smaller to bigger amounts.
- Enter the market gradually
Start trading with one currency pair. When you have a firm grasp on the market and understand the logic of trading this specific instrument you can expand and trade other currency pairs.
- Don’t trade against the trend
Inexperienced traders often assume that trading against the trend will lead to quick profit. But remember: it is very hard to outplay the market, especially for a beginner. Be patient. Don’t regret missing a radical shift in the market – it never stays in one place and you will always have new opportunities to make profit.
- Analyze your successes and failures
Take note of all your orders, analyze both profits and losses – this is the only way to make necessary conclusions and become a professional. Remember – failures are also a very valuable experience which will help you make more in the future if you analyze it correctly.
- Stay calm and don’t lose track
The market should be approached with a cool head. This is the only way to make objective and correct trading decisions. Greed, nervousness, euphoria and fear are the main enemies of a trader. Discipline is key for success.
As a last word: believe in yourself and go forward to your goal, don’t give up because of difficulties and luck will surely smile upon you!