Tipswalet- 4 Best Forex Trading Techniques That Are Safe For Beginners To Not Be Bankrupt – How do you play safe forex trading for beginners? Maybe this is one of the big questions for beginner forex traders. Can’t blame, because indeed in the forex business world there are so many terms and things that are complicated.
In fact, there are many traders who go bankrupt. That is because they do not regulate a good trading and financial system. While in all types of businesses, money management is something very crucial.
If you currently intend to go into the world of forex, then you must really pay attention. You have to learn and practice straight away because forex trading without good basic knowledge will plunge you into huge losses, or maybe go bankrupt.
This article is specifically intended for beginners who do not understand how to play forex, and what needs to be done before trading.
What Is Forex Trading?
Forex stands for Foreign Exchange, which is trading currencies from different countries. For example, buying Euros later while selling US dollars. This method is done to make a profit from the difference in the selling value of the currency.
Trading techniques or forex trading cannot be done carelessly. In order to learn the techniques of currency movements and take the right steps. We should learn forex techniques first.
There are people who think that forex trading is easy. Usually, they are beginners who just tried a demo account. In fact, almost 90% of people who play forex as one of the investment routes often experience losses. Even, There are many beginners ending in faile.
The percentage of failure is usually caused by the incomprehension of traders about the technique of using forex well so the result is that the large nominal invested in forex is lost in vain.
Surely no one wants to feel loss or go bankrupt in the forex business. That is why beginners MUST learn how to trade forex properly, both in theory and practice.
Learn Forex Trading Techniques For Beginners
For beginners who really want to seriously want to learn how to play forex and don’t want to fall into misleading information, make sure you do the following crucial things:
1. Money Management
Before forex trading, it is very important for beginners to have the right mindset about forex. This is very important, don’t just think about profit until you forget about financial management.
In forex trading, the loss can occur at any time and this is something common to all traders including experienced traders. And it is very important for a trader to limit his losses from every transaction made on the forex market.
This money management includes several important things, including;
Understand how much resilience of funds (equity) in a trading account.
Using lots that are safe and in accordance with equity.
Determine taking profit position (TP) and cut loss (CL) for each transaction.
2. Learn to trade on a demo account
A demo account is recommended for the beginner for the fist. With a demo account, we can trade in real conditions but the money used is not really so when experiencing a loss trader does not lose real money, and if the profit then the profit cannot be cashed. It makes a minimal risk for all newbie trader.
Usually, when trading on a demo account, novice traders do not experience mental and emotional stress such as when trading using a real account. However, this can be a form of exercise that is good enough for beginners to be able to learn the price movements of each pair (currency).
3. Use a Trusted Broker
Finding a broker that suits your trading needs is a challenge for novice traders. There are many factors that must be considered when we will choose a forex broker.
As an illustration, if you have limited or small capital, foreign brokers are the most suitable choice. Some of them; Insta Forex, FBS, XM Global Limited, and OctaFX.
However, if your capital is large enough, the local forex broker will be the best choice. Some local brokers are quite popular including; Monex, GK Invest, Askap Futures, SoegeeFX, and AsiaTradeFX.
4. Understand the Characteristics of Certain Pairs
Every currency pair (pair) in the forex market has unique characteristics. There are pairs whose price movements tend to be calm, but there are also pairs whose price movements fluctuate.
Then what pair is the most suitable for trading? Depends on the trading style of a trader. If you are a trader who likes risk, then the GBPUSD pair can be an option for trading because this pair is known to be volatile. But before you are advised to first learn the characteristics of the GBPUSD pair.
Meticulous investing will make us get a satisfying profit from buying and selling foreign exchange. Don’t forget to look for many support systems and references if you plan to go into the forex field. And no need to fear failure because failure is part of the learning process.