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Forex trading has been a popular option for traders, but the current economic environment has led to many Forex beginners turning their attention towards the Forex trading platform. Forex stands for "Foreign Exchange" and is an adrenaline-inducing currency trading platform that offers ordinary people the thrill of participating and the opportunity to make big bucks. It all began in the 1970's, when floating currencies and no exchange rates were first introduced.

Forex is the largest of its kind in the world. It trades at up to 2 trillion USD every day. This market is unique for many reasons. First, it is one of few markets that doesn't require any special qualifications. Also, it is completely unmanipulable. This makes it ideal to learn Forex. Forex transactions are so quick that any one investor can't significantly affect the value of any major currency. Forex beginners can always find buyers and sellers. Forex traders can open and close any position in seconds.

Forex beginners need to know that making profits is not as simple as it seems. Without the right expertise, the right tools, or the right guidance, they can find themselves with a huge financial hole. Many traders who start trading Forex have succumbed to the emotional side of the platform, and they begin to chase their losses, which makes the financial hole even bigger. This article is intended to provide the Forex beginner with a solid foundation so that they can move up the Forex trader ladder and begin making money Forex.

1. Research Is Key

Many Forex beginners will view research as boring and tedious. However, it is essential to understand how the Forex system works. Forex beginners should be familiar with the platforms they use, their currencies, timeframes, currency pairs, lot numbers, how to calculate and value pips and what time zones they work in. These are only a few basic areas, but to be a Forex pro you will need to know more. Forex beginners should read and research extensively before they invest their savings. They should also continue to improve their skills and knowledge. Start small and work your way up.

2. Automated robots can be a great help

Forex beginners are advised to not trade manually because the market is highly unpredictable. Instead, they should look into one of the many Forex trading robots available. Forex robots are usually designed by professionals traders to accurately predict the market movements. This means that it's almost as if you have an expert telling you when to buy and sell.

While there are many great free Forex robots that you can download, we recommend downloading the paid version. They are always updated with current data so your robot will always trade correctly. Forex robots are legal. Many large corporations use robots and other automated systems to help them make money.

3. Get A Demo Account

Virtually all trading platforms offer a demo account to Forex beginners. Forex trading takes time, as with all new skills. To become a good trader you must have your own strategy. A demo account is free and allows Forex beginners to test out different strategies and ideas, without incurring any real losses.

For a few weeks, trade on the demo account. Once you are comfortable with trading, move onto a real account. But remember that if the Forex beginner is not ready to trade live, they can always trade on a demo account. To minimize mistakes, it is better to trade on a demo account.

4. Don't Leave Your Emotions at Home

Forex traders will be aware of the emotions involved in trading. Forex traders should not chase down losses or be greedy after losing trades. Forex beginners should not react too quickly to lose trades. Overtrading can disrupt their money management and increase their trading risk. Forex is pure gambling, just like in a casino. Trading without understanding the market or analysis is equivalent to playing a game. If you lose real cash, games can be fun.

5. Never Risk More Than 2-3% Of Your Total Trading Account

One of the main differences between a Forex beginner who succeeds and one who fails is that the first can survive in adverse market conditions while the second will lose his account after 10-15 unsuccessful trades. Long-term results can be opposite for traders who use the same trading strategy. Money management is what will make the difference. One quick fact that will help you think about money management is this: To restore your original balance, 50% must be lost.

Forex beginners should thoroughly research the trading platform, analyze the market trends, and test out strategies in a demo account. Only after they feel comfortable with their strategy, can they start to trade live.