Useful 10 Tips for the FOREX Beginners

1- Do your homework

If you are new to Forex trading, then the first thing you need to do is spend time reading and researching what Forex trading is all about. Spend time on reading through the various articles and checking out some of the resources. If you don’t spend time doing your homework then you can’t expect to be a successful Forex trader.

2- Get the right broker

Check out our article on how to find a good broker. A lot of your success or failure is going to depend on having a reliable broker. Check out their reputation, investigate them, and don’t be afraid to spend time talking to different brokerages before you decide to invest. If they don’t seem receptive to your questions then move on and find another broker.

3- Formulate your strategy

Are you going to be a fundamentals trader and trade for the long term or are you going to be a Scalp trader, looking to consistently make small profits that will add up over the long run? Are you going to perform analysis yourself or are you going to use a software system. If you are going to use software, then check out the next tip.

4- Research signaling software

There are hundreds of software packages out there for Forex trading. You need to spend time researching them and seeing which will fit your needs. You should test them out and see which ones seem to work well and which ones have the tools that you are going to want. Try to get trial runs of the software packages before you leap in.

5- Perform a trial run

Spend time with your broker and your signal software and give it a trial. Many brokerages will give you a dummy account where you can practice making trades with fake money.

6- Practice, practice, practice

Now that you have you broker and your signaling software and have done a trial run, spend time practicing your strategy over the course of a few months. Practice makes perfect and when you are risking your own money, you want to be as close to perfection as possible.

7- Keep up on the news

Pay attention to world events and see how they effect currency values. Watch the news and try to predict where currency prices will go. While short-term trading may not rely on news, you should still brush up on this as it will affect long-term trends.

8- Start small

Once you are ready to leap in, don’t deposit all of your money and make huge trades. Start small and see how it goes. Overtime, you can risk more.

9- Always get a second opinion

Whether it’s choosing a broker, a software system, a trading strategy or anything else, always check around with other traders and see what they think. Get a second opinion.

10- Diversify your profits

So you’ve become a successful currency trader. You are going to want to reinvest some of your earnings back into the currency markets. However, diversify some of your winnings so that you aren’t only invested in the currency market. That is the safest route to go over the long-term.