Beginner Tips For a Successful Forex Trader

To be a successful forex trader, you need to establish a trading risk profile and find an appropriate broker.  You also need to set your trading goals.

Establish a trading risk profile

Find an Appropriate Broker

Set Your Trading Goals

You need to use Tradingtools to expand your knowledge. The forex market is constantly changing and forex traders need to be able to adapt to these changes quickly. One way to do this is by using online forex trading platforms. These platforms provide forex traders with real-time data and analysis tools that can help you make informed decisions about their trades.

Use Trading Tools To Expand Your Knowledge

Find the Right Trading Pairs e.g. EUR/GBP, EUR/JPY, EUR/CHF

Set up an Automated Trading System

In addition, forex traders should also find the right trading pairs for their strategies. For example, if you want to trade EUR/GBP, you should look for a platform that offers this pair. As a forex trader, you should set up an automated trading system as this will allow you to trade without having to constantly monitor the market. 

Be A Constant Learner Through Webinars, Chart Patterns, and Monitoring Global Markets

Develop A Trading Plan

Control Your Emotions

Develop A Risk Management Strategy

Open a Demo Trading Account with ActivTrades

As a forex trader, it’s important to be a constant learner. There are always new concepts to learn and new strategies to try. The best way to stay ahead of the curve is to participate in webinars, chart pattern studies, and global market monitoring. In addition, it’s also crucial to develop a trading plan and control your emotions.

A well-rounded forex trader should also have a risk management strategy in place. One of the best ways to get started is to open a demo trading account. This will allow you to practice forex trading without putting any real money at risk. By taking these steps, you’ll be well on your way to becoming a successful forex trader.

Practice Money Management Techniques

Cut Losses Early Than Later

Scale Positions

Have a Trading Journal

Be a Disciplined Trader

Stick To Your Strategy

Open a Demo Trading Account with EightCap

Forex trading is all about managing your money. If you don’t have a solid plan for how to manage your money, you will likely lose money in the long run. There are a few basic money management techniques that all forex traders should practice. First, always cut your losses early. It is better to take a small loss than to let a loss turn into a big one. Second, scale your positions. 

Don’t put all of your eggs in one basket. Third, keep a trading journal. This will help you track your progress and see what is working and what is not working. Fourth, be disciplined. Stick to your strategy and don’t let emotions get in the way of your trading decisions. Finally, don’t risk more than you can afford to lose.

Maintain a Healthy Work-Life Balance

Stay Updated With Forex News

Adapt To The Forex Market

Adapt A Technical Analysis Strategy

Trade Your Edge

Watch Other Markets

Forex trading can be a very lucrative occupation, but it is also one that can be very demanding. A forex trader needs to be able to sit for long hours in front of a computer screen, monitoring the market and looking for opportunities to buy or sell. This can take its toll on both your physical and mental health, so it is important to maintain a healthy work-life balance. 

Make sure to take breaks often, and make time for other activities outside of forex trading. It is also important to stay up-to-date with forex news, as this can give you an edge over other traders. And finally, don’t forget to develop a sound forex trading strategy. A good strategy will help you make consistent profits in the forex market.

Use Trading Tools To Expand Your Knowledge Find the Right Trading Pairs e.g. EUR/GBP, EUR/JPY, EUR/CHF Set an Automated Trading System

Open a Demo Trading Account with Alchemy Markets

Looking To Start Trading Forex?

Join our partners’ FREE online forex trading sessions and share the experience and knowledge of finance professionals.

You can choose which educational trading webinars to participate in English, German, Italian, French, Spanish, Portuguese, Chinese, and Bulgarian: 

Webinars are a great way to learn about the markets and start trading. Our team of experts will guide you through each step so that you can make informed decisions regarding your investments.

In our Forex Trading Education section, traders can take advantage of Forex, CFD, and Crypto services like Expert Advisors EA’s, reviews of Smart Trading Tools, Forex Video Lessons, Free Trading Webinars, One to One Training Forex education, and crypto trading and education.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult with a professional advisor before making any investment decisions.

Author

• 
  Zahari Rangelov

  Zahari Rangelov is an experienced professional Forex trader and trading mentor with knowledge in technical and fundamental analysis, medium-term trading strategies, risk management and diversification. He has been involved in the foreign exchange markets since 2005, when he opened his first live account in 2007. Currently, Zahari is the Head of Sales & Business Development at TraderFactor's London branch. He provides lectures during webinars and seminars for traders on topics such as; Psychology of market participants’ moods, Investments & speculation with different financial instruments and Automated Expert Advisors & signal providers. Zahari’s success lies in his application of research-backed techniques and practices that have helped him become a successful forex trader, a mentor to many traders, and a respected authority figure within the trading community.

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Day Trading or Swing Trading?

Before you start trading you must find out what type of trading style will suit you best, depending on the available time you have during the day.

You must know if you would have the time for trading on a daily basis, which basically means you place your trades during the day and close them at the end of the day.  On the other hand, if you already know the answer, then your preferred trading strategy would be Swing Trading.

The difference between Day Trading and Swing Trading is the time frames used in order to determine when to enter and exit a trade and should you be Short or Long. You will find out that there are a lot of benefits and advantages so you can choose which strategy will suit you best. A quick overview of both Day and Swing trading strategies will show that there are several factors you should have in mind.

These trading strategies can be separated into the following categories – profit per trade, trades per day, risk-reward ratio, fund management, Sharpe ratio, Sortino Ratio, Max Return Run-Up, Max Return Drawdown, Max Profit Run-Up, and Max Profit DrawDown.

Day Trading encourages trades made during specific time frames. It requires screening and analyzing markets every single day in order to be able to make quick decisions. For example, most of the Day Traders use smaller time frames ranging from 5 Minutes time frame to 4 Hours time frame in order to determine support/resistance, highs, and lows levels during a specific day and enter and exit multiple trades during that day. Day Traders are after ten to a few hundreds of pips profit per day.

Swing Trading functions in a similar way with regard to analysis, but it is not as crucial to place multiple trades in a single day, as it expands over the period of several days, weeks, or months. Swing Traders are after thousands of pips profit per trade. Sometimes they have to wait for some time in order to exit a trade, but after all the profit never lies.

Day Traders can enter/open and exit/close a trade from once a day to hundreds of times a day.

Swing Traders wait for the Swing in order to place their trade.

Due to the smaller time frames Day Traders use, the profit targets can be very close to the risks they take. When a trend occurs, it is often within a few hours that day traders can make or lose the most.

Funds are managed differently in Day Trading and Swing Trading.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult with a professional advisor before making any investment decisions.

Author

• 
  Zahari Rangelov

  Zahari Rangelov is an experienced professional Forex trader and trading mentor with knowledge in technical and fundamental analysis, medium-term trading strategies, risk management and diversification. He has been involved in the foreign exchange markets since 2005, when he opened his first live account in 2007. Currently, Zahari is the Head of Sales & Business Development at TraderFactor's London branch. He provides lectures during webinars and seminars for traders on topics such as; Psychology of market participants’ moods, Investments & speculation with different financial instruments and Automated Expert Advisors & signal providers. Zahari’s success lies in his application of research-backed techniques and practices that have helped him become a successful forex trader, a mentor to many traders, and a respected authority figure within the trading community.

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10 basic forex laws for Trading Success

1. Can’t wait to Dip your toes in the market.

Nearly 90% of newborn traders open many trades at the beginning, then are unable to follow them.  When focusing on just fewer trades and choosing them carefully, you will have the chance to learn from your orders and will use them to improve as a trader.

2. Keep Your Balance.

The Market will give you unlimited chances of making profits, but the hall of fame is not all about making the profits, it is the ability to keep them. Allowing profitable trades to run, cutting losing trades, and most of all not allowing pressure to change your trading strategy is your best way to profitability.

3. Don’t Forget Your Stop Loss!

One of the main reasons new traders tend to quit trading in the first 6 m months is not being able to control their losses as they either forget to place their Stop Loss, place it on a wrong price level, or just never use any. Using it will protect you from suffering heavy losses when you are on the wrong side of the market. You can place a Stop Loss on every single trade or on your equity. Later on, we will talk about appropriate levels for placing your Stop Loss based on average market volatility.

4. Make a Trading Strategy – Have a plan.

As in every business, you will need to have a plan and determine your goals. Before you plan, you must ask yourself, how much money do I need to make on a daily/ weekly/ monthly/ yearly basis to be happy?  How much time do I have for trading? What is the amount that I am ready to invest? To succeed you will need to develop a strategy that will work for you, based on the answers to the questions.

There are many ready and developed trading strategies and financial instruments out there. Pick and develop very wisely.  Investors with more time will adopt a day trading strategy and become day traders while others will prefer to be swing traders, keeping their trades in the long run. Whichever trading style suits you best, stick to your plan. New traders constantly change their strategy when they experience losses. Taking losses is part of the game. The key is to cut the losses while they are small and to allow the profits to grow.

5. Allow the Profits to Develop.

The mistake nearly 90% of newbie traders do is closing the winning trades very early, not allowing them to grow. Stick to your plan. If you have decided to make 100 EUR on every winning trade, then don’t close it on 50 EUR. Be patient.

6. Allowing Profitable trades to turn in Losing Ones.

When the market is in your direction, then you are making money. Follow the trade. Move your Stop Loss or Trailing Stop above the entry-level if it is a BUY order and below, if it is a SELL order and lock your profits.  In case of a market reversal, you will preserve your profits.

7. If In Doubt, Follow Us, Contact Us.

8. Plan wisely and Ahead.

Don’t just enter a trade, because you see the price suddenly moving. It should always move. Plan your trades, before opening any. Know your Take Profit and Stop Loss levels. Have a good idea of your entry and exit points. Now, wait for the right moment and take advantage of the markets.

9. The Trend is your friend. Know the Trend and feel the Momentum.

Traders should be aware when a trend is developing, also the momentum is increasing also increase. Don’t get fooled by an emerging trend. Wait for it to develop. You should be on the side of the momentum. The momentum will push your trades sooner in your direction, hitting your Profit levels much quicker than expected.

 10. Forget wasting time on a losing trade.

Learn to keep yourself fit. Save your time and energy. If you see yourself in a negative trade and have forgotten to use a predetermined by you Stop Loss, do not worry, it is not the end of the world. Just close the trade and move on planing the next one. The Forex and CFD markets are full of joyful moments, just waiting to be hoped on, so there is no logic in wasting time on losing trades.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult with a professional advisor before making any investment decisions.

Author

• 
  Zahari Rangelov

  Zahari Rangelov is an experienced professional Forex trader and trading mentor with knowledge in technical and fundamental analysis, medium-term trading strategies, risk management and diversification. He has been involved in the foreign exchange markets since 2005, when he opened his first live account in 2007. Currently, Zahari is the Head of Sales & Business Development at TraderFactor's London branch. He provides lectures during webinars and seminars for traders on topics such as; Psychology of market participants’ moods, Investments & speculation with different financial instruments and Automated Expert Advisors & signal providers. Zahari’s success lies in his application of research-backed techniques and practices that have helped him become a successful forex trader, a mentor to many traders, and a respected authority figure within the trading community.

  View all posts