4 Things Beginner Traders Need to Know Before Starting Forex Trading
Forex trading is not something easy because it is currency trading. As professional traders, we should really know about this market so that profits can be achieved easily.
Many people feel that playing forex is very easy to make a profit, it is true that what they feel applies to forex trading. However, we need to know that the market is always changing, profit is not always on our side. Therefore it is very important to know a few things about forex before starting to trade.
Before starting trading, there are a few things you should know and really understand before jumping into forex trading. Some of these are as follows:
1. Forex basics and terms
Anyone who wants to start trading, it is mandatory for him to know the basics and terms in forex because in this trade there is no guarantee of 100% profit even from the forex master strategy though. Forex about market changes, expert strategies do not guarantee profits every time. Therefore, playing forex means learning without stopping. If you know the basics and terms in forex, it will be easy to understand everything that is conveyed both in the news and by forex experts.
Not knowing the terms in forex will make you confused when reading the news or reading advice and strategies from forex experts. Before starting, make sure you know all the terms that are often used in forex.
2. Trading strategies and plans
Forex trading strategies may already be familiar to traders who play forex. But, will everyone always rely on the strategies they find on forex learning blogs and websites? Wherever you learn trading strategies for profit, you don't have to follow the strategy because it is highly recommended that you create your own trading strategy and plan. The strategies you get from various websites, ebooks, seminars and books can be used as references and increase knowledge, but you still have to make your own strategies as an upgrade from the strategies you learn from various media.
3. Commit to trading
Commitment in trading is very important because losses can be caused by uncontrolled emotions. For that commitment in trading is very necessary. Many people have a trading plan with a profit target that they have set. However, they violated these plans and targets because they wanted and hoped for more. If you are committed to achieving a profit of 100 USD per day, do not let you continue and violate the commitments that have been made. Many people fail to trade because they are lulled by profits as if they want unlimited profits.
It is true that everyone wants to earn more. However, without a commitment to trading, losses can come. Price movements change per second, even a little late to close the order you can lose. Although you can also get more profit, you should close the order according to your daily profit achievement target.
4. Get started with a demo account
Don't underestimate the demo account because from it you can learn a lot before actually jumping into the real market with real money. Utilizing a demo account is the best way to put your strategies, plans and commitments into trading. Be patient to take advantage of the demo account for at least 1 month. With a demo account you can learn, both from mistakes and from your own strategy. This demo account is also what you can use to apply the strategies you just learned before applying them to the real market.
In using a demo account, you should also pay attention to the funds you have available for trading. If you want to start trading with a capital of $100, you should also put $100 into a demo account according to the capital you have prepared. Likewise with Laverage, choose according to what you plan, for example you want to use Laverage 1:1000. On the demo account you also have to choose the Laverage according to the plan. This is so that you know the minimum margin available when you trade and that large cut losses can be avoided.