It is common knowledge, for forex traders must have understood that forex trading provides the most attractive global trading opportunities on financial markets, and because this is one of the most liquid markets in the world, traders can take advantage of tight spreads.
Maybe if you read from several sources about online forex trading tips for success in 2019, you will find many kinds of useful tips that you can apply in trading.
But the most important thing
as with any investment, the way you decide to trade Forex will greatly depend on how well you know the market, what information you collect through research and analysis and the overall purpose of your trading strategy.
In this article, we will try to summarize the forex trading tips that will support your success in the forex business.
Forex Trading Tips For Beginner
A beginner trader, you may still have minimal trading experience, so there will still be many errors, and with the following tips, it will be very useful for you newbies to learn to trade
Tips 1. Know the Market
Before you start trading with money from your own pocket, you better take the time to find out and learn about the currency pairs that you will trade, in this case, you can use a demo account from a broker for market research purposes.
By studying the currency pairs that you are trading, this will give an idea of whether you already know the character of the currency pair:
If later then you ready to start to fight in the battle in real account, at least you have early preparation for currency pair that will to traded
Tips 2.Make a Plan and Obey it
The trading plan is very important, for beginners it is highly recommended to always learn to trade by making a trading plan, wherein this trading plan is related to the maximum risk in one plan, and also the target you will achieve, the trading method that you will apply.
If you have recorded all the trading plans in one journal, this will help you conduct a trade evaluation, and with evaluation, hence you can learn from your own mistake then overcome for future.
In this case, you must keep discipline to obey your plan, you may to hear good quotation, plan your trade and trade your plan. So keep discipline and obey your rules
Tips 3. Practice
Some senior traders state that practice will make perfect, this is true because, with more practice, your experience will be even more in dealing with various market conditions and fluctuations.
For you beginners, you can take advantage of the free practice with TenkoFX demo account, as a means to practice trading freely.
Maybe you as beginner trader not yet ready to start practice with real money, so demo account is useful to practice, The longer time practice in demo account better than few days only, because many traders fail less than for six month, its good you keep practice in demo more than six months, look your performance along these time
Tips 4. Forecast market conditions
For beginner traders, it's good to learn also to learn about market forecasting, with fundamentals of trading based on news and financial and political data on countries where your currency pair trades.
But you must understand, that sometimes the news that should have a good impact on the currency, but it is not in line with the news, sometimes market players, especially big traders have different considerations when one news is considered good but on the other hand the news is bad, stay disciplined with the risk tolerance you plan
Each technical analysis is very important to learn in an effort to make market forecasting, technical analysis emphasizes the use of indicator tools, learn indicators and how they work, because there are many kinds of forex indicators with different functions and characters, again you have to be disciplined with risk tolerance in your trading plan
Tips 5. Know Your Limits
Beginners might think that getting earnings from forex trading is very easy, you are wrong when building this kind of mindset, forex is easy but not as easy as you imagine, so recognize your limits, how much capital do you prepare to trade, not to spend money that is important and you use in the near future.
If you have limited funds, you can use the leverage that suits your needs, high leverage will useful for the retail trader, and it will increasing opportunity to make more trades, as long as safe trading with smallest lot size, high leverage will help to improve strategy.
And the most important to investing money in risky business, is just spent money that affords to lose, don`t forced your self to borrow money to investing in forex, it could make you double stress when you fail
Tips 6. Find out where to stop along the way
Not always you will sit in front of a computer and monitor the graph of price changes at any time, you will feel bored if you only monitor the graph in front of the computer, therefore you can take advantage of trading platform features using stop loss, pending orders and trailing stops, while you may leaving the graph
With stop loss, the risk is in your plan, with pending orders, you can ask at the price you think is best, with trailing stop, the stop loss will be automatically modified when the price moves towards your target according to your traling stop distance setting, but the feature this only runs if your mt4 is connected to the server
Your body also need to take a rest, enforced your own selves to sit in front of the screen for 24 hours is bad for yor healthy, keep health your body because this is very expensive of wealthy.
Tips 7. Don't be afraid to explore
Maybe you as a beginner have found a trading method that is suitable for you, indeed consistency is important, but you can explore trading methods in different ways, by diversifying your trading account you can explore trading methods and still run the old trading methods.
Before deciding to use the trading method you just learned, take advantage of the demo account again, this method is safer than you directly use it on a real account.
But what you have to realize, there is no perfect method, there is always an error gap when using the trading method, so recognizing the type of market conditions is important so you can adjust the trading method you will use
Forex Trading Best Tips Based Analysis
As a forex trader, analyzing is an obligation, before you make a buy or sell decision on a currency pair, you have to do a market analysis first, this will reduce the way you trade to avoid gambling in business
The following tips will help you to the success of your trade, and we hope you can become a professional trader
Understanding market correlation
The forex market is a market in broad scope, many factors that influence changes in a currency, the relationship between a country's economic conditions and changes in currencies, this often has a correlation when there are changes in economic data and changes in a country's political map.
These correlations are not only the cause of economic conditions. but there are also countries where changes in their currencies are influenced by certain commodities depending on the currency you decide to trade because some economies are modeled with different strengths, for example the so-called commodity currency
CAD and World Crude Oil
Canada is one of the world's largest countries producing crude oil in addition to the United States, Saudi Arabia, and Russia. Besides oil, Canada is also a major exporter of aluminum, copper, and nickel.
Changes in world oil prices have a positive correlation with CAD
If world oil prices fall, Canada's economy, as one of the world's major exporters of crude oil, will be disrupted, affecting the CAD currency weakening.
AUD and Gold
Australia is the second largest gold producer in the world after South Africa. So that the country's gold exports have the largest share of Australian GDP, so that the fluctuations in world gold prices will greatly affect GDP and the AUD exchange rate.
Commodities exported from Australia are coal, iron ore and wheat, but the correlation with AUD is greater against gold.
if you like to trading for currency AUD, its so good to analyze for gold price movement, because have positive corelations.
NZD and Dairy Products
New Zealand's main commodity is rather typical, namely dairy and meat and wood products. This makes fluctuations in the New Zealand Dollar (NZD) not influenced by one particular commodity, but prices in general. As a commodity currency, NZD has a positive correlation with the world's main commodity price index.
Because Australia is New Zealand's main export destination, the economic conditions in New Seladia are also influenced by the condition of the Australian economy. NZD / USD or has a positive correlation of around 96% against AUD / USD. For NZD traders, it is important to look at the world main commodity price index and AUD / USD.
Use support and resistance
Support and resistance is one of the most valuable and simple strategies for trading the Forex market
Understanding the levels of support and resistance will provide an overview of your trading methods and strategies
In the area of support and resistance, it is often the strongest area and often the price seems difficult to cross this area, if there are no major events that make a change of turmoil
Basically, the price goes down where the currency will pause or stop the decline, this area can be the entry point for traders
This level indicates a high price at which the market begins to believe the currency may be overvalued and that could be a strong indicator of potential sell-off in the near future.
Support and resistance identification tools
To determine this support and resistance area you can use analysis tools with indicators such as Fibonacci, RSI and Bollinger Bands, but you can explore with candlestick patterns to find this support and resistance area by using horizontal lines
Daily trading aims to take advantage of the volatility of price changes in the short term, maybe just a few hours, and not pass a trading day.
Daily traders take advantage of current trend movements with sentiments and trades that apply in the same direction until a support or resistance level is reached. After the profit target is reached, or their stop loss is triggered, their position will be closed.
Daily trading also requires strict risk management so that you will have a better chance to trade with this method, easily managing the risks and profit targets to be achieved
Forex Trading Tips Secret For Safe Trading
Safe trading is about various aspects that affect security in forex trading, we will explain these tips for safe trading as a support for your success.
Determine your risk tolerance.
If you have 1000 $ of funds, don't risk more than 5% of your total equity, in your trading plan, creating a risk tolerance limit will provide more opportunities, so you have the remaining funds to return to the transaction
Maintaining a trading account from a margin call will be difficult to implement if in trading risk all available equity
Choose your account type
Selecting the type of account will also determine whether trading security will be good or vice versa, if you are a beginner, choosing a cent account is much lower risk compared to a standard account.
But if you are a professional trader and are mentally prepared with more capital, a standard account is an option to increase profits
Choose leverage according to your needs
Choosing leverage is also an important part of forex trading for safe trade, the basic rule is that with low leverage the risk will be low, and with high leverage, the risk is also high
Professional traders choose low leverage, but they have large capital, with low leverage requiring higher margin requirements, this prevents over trading
High leverage is usually used by retail traders who have small funds, ideally with high leverage increases opportunities, because it requires a low margin requirements for 1 lot size.
By understanding the concept of leverage you can adjust to the needs in choosing it
Start with small amounts not with bigger deposits.
The next tips for safe trading start with a small deposit.
The most important thing in forex trading is your skill in trading, starting with small amounts and increasing profits is better than making a larger deposit but the ability does not support to increase profits, this will only waste your money
There is no justification for the idea that larger capital will allow greater profits.
Because in large capital trading may increase the greed of traders, depending on your ability in this matter, but will better start from small and make them bigger
Focus on one currency pair
There are many currency pairs in forex but mastering all pairs is very complicated to do, focusing on one currency pair will make it easier for you to learn errors and conduct evaluations in trading.
For safe trading for traders who still have minimal experience, choosing one pair is better and easier to regulate risk tolerance in trading
Indeed, there are some traders who use the basketball trading strategy by trading on multiple currency pairs using the correlation method between pairs, but if this only makes you confused then choosing one pair and doing this to get improvement is far more effective than trading on many pairs
Do what you understand.
The forex market is very dynamic, but if you study it deeper there will be a time of ease when the market trend becomes clear, not all market conditions will be easy to analyze, when the market states sideways conditions, it will be very boring to trade
By doing what we understand will also make safe trading, because then not all market conditions will make an entry point, but will only enter if the signal is really confirmed
Don't add to the losing position.
When you have made one order, but you see that the order is exposed to floating losses, do not add new entries and better complete your plan, as long as the stop loss has not been triggered, you are still waiting for the order and plan to finish.
Adding a position does not always give good results, the market is very dynamic, no one knows where the price will then move, for safe trading, it is better to still complete the trading plan at the beginning, and not add the losing position
Don't fight market trends
Maybe you've heard that trends are your friends, this statement is true.
It is not recommended for forex traders to fight market trends, it may be quite difficult to determine the trend for sure, but in the long term trend, traders can do analysis by using a timeframe for the long term to get an understanding of long-term trends.
In this way, the trader gets a long-term analysis to get market trends, and trades based on the trend, even though the price fluctuation allows it to go down and rise in a short time, but the trend of trends will return to the long-term trend path
Learn money management.
If you get a profit, learning to protect it, try to get the profits that will be safe and no longer experience further losses, implement discipline by looking for trading momentum that you understand, so that later you can increase profits again.
Or you can withdraw a portion of your profits and let some be in a trading account, this is a compound profit, but keep in mind, discipline with your trading rules and apply this money management regularly
Choose your broker carefully.
For the safety of trading, choosing a broker is also an important part for traders, because it will be full of regret if he chooses a scam broker when he has tried to collect maximum profits, but when making a withdrawal dealing with a refusal from the broker, this will regret because he can't money withdrawal
Choosing a broker that has real regulation, positive reviews from traders who have used brokerage services, a comfortable trading platform and no constraints in trading, allows scalping and hedging trading systems, and other criteria that are your consideration is that a spread strict and the type of account available
Forex Trading Tips Built Up Psychology
Successful traders have strong psychology, building psychology is very important for all traders, for beginners and experienced, these tips might be useful for you in developing the psychology for the better
Take control of your emotions
You have to train yourself to be able to control emotions well, maybe a little difficult when you get a losing streak, but with a strong intention, surely you can refrain from emotions
Thinking clearly and building a good mindset, defeat is not a trigger for emotions, but defeat is a lesson that can be learned and becomes better
Excessive emotions, the impact will disrupt your trade, this can lead you to greed and blindness in trading
When you stress generally leads to irrational decisions, and in trading, it will burden you with money.
To avoid stress you can recognize the causes of stress, if you are unable to eliminate it, it would be better if you leave the market, because trading with stress will be more difficult to build skills
These tips might reduce the stress you suffer, take a deep breath and focus on other things by forgetting the cause of stress, or if you like listening to music, play your favorite song and forget the causes of stress
Patience is a virtue
Success does not come instantly, patience is absolutely necessary in your career, in any case, it is important to maintain patience
In the course of your trading career, you may encounter obstacles, successive losses, margin calls, uncertain market conditions, if patience is not with you, maybe you will quickly leave forex because of a failure
Maybe out there, many software sellers promise fantastic profits, but you have to be careful, many of those sellers just want your money, high-priced software doesn't guarantee your success
Take a Break Awhile
When you facing in boredom, or maybe even excessive stress, you need to take a rest to make your mind calmer
If maybe you are dealing with successive losses, and there is little capital left, take a rest is the best answer rather than forcing yourself to back into the market
Forex trading is very flexible, you can rest and not always have to be in front of a computer screen, with a break you can re-gather your mind more relaxed
Do not give up.
Dynamics: fluctuating markets, sometimes forcing you to lose some money, when dealing with this loss might make your mind falter, leaving forex might cross your mind.
There are no professional traders who will get success overnight, so you have to be patient and don't give up in facing the obstacles
You can learn from all the mistakes that cause you to lose, this is far more valuable than you leaving forex because of giving up because of failure, success is still open to all, not giving up is the key to success
Forex Trading Hints and Tips
Forex trading is a risky trade, when you start entering this business, it means that it is also ready with possible risks that might arise, losing money.
When you start, learn trading, it is worth listening to the instructions and tips suggested by traders who already have the experience, learning from them will minimize the risk
Like schools, you have to start from first grade onwards, as well as in forex, basic learning will give you the first insight into the structure of the forex market, then you can explore the next step, practice using a demo account
For more than six months, you should learn the demo, if you are confident, then choose a micro account or penny account, this is a step to build psychology slowly, a micro account or a cent account requires a smaller initial deposit.
Focus on Trade and Learn to Accept Small Losses
After you complete a demo account and feel confident to use your money on a real account, the first thing to remember is that your money is at risk.
When you have placed an order in a trade, you may receive a loss in a forex trading transaction, and that is better than revenge, this is a bad emotion.
Therefore in every trading plan, calculate the lowest possible risk, with a small risk will multiply the opportunity and this is the key to success in forex trading too
When you make a deposit you also need to consider, with your daily needs, it is not recommended to borrow money for high-risk investments such as forex
Choose Methodology and Consistency
If you visit the forex forum, there will be many types of trading methods shared by traders.
You can learn trading methods from fellow traders, but it's better to develop trading methods by finding your own trading system
Applying trading methods should be disciplined, and consistent, this would be better than you changing the other methods, because there is no absolute perfect method, dynamic market movements are the reason for the trading method to have a gap to meet defeat.
By applying consistent trading methods, you will learn from mistakes and think about improving them, this is a great way to succeed
Choose Your Entry and Exit Time Carefully
Determining entry and exit is very important, in you analyzing the market by looking at different timeframes, you might find a timeframe giving an indication of a bearish trend, but from another time frame indicates a bullish trend
You must understand which reference timeframe you are using according to the style of trading that is applied, if you use the weekly timeframe reference, then you can go to the daily timeframe and look for a bullish trend synchronization on this time frame
If your bullish weekly trend needs to wait on the daily timeframe it also indicates a bullish trend, but you can move to a lower timeframe to see the movement details
Calculate your expectations
Calculating expectations is a way to understand the trading system has a performance that gives a better winning trader or vice versa, a larger loss trade occurs
We recommend that you record all your trading plans in a journal if in 10 trades you get 5 winning trades and 5 loss trades, you note it all and this data can be used to conduct trading evaluations
With hope, this will help you achieve certain targets of the forex business that you do
Write and Save Notes
When you make a transaction, you should record all charts and reasons for your entry, whether it is based on the indicators used, or because of factors panic or fear of lagging behind the chart, or because news that released, all journey needs to write down and save notes
On weekends, when the market is on holiday, you can reopen your notes and learn them, this will give you a new lesson, your notes will be able to be made into books in clips so that it will increase your interest in re-reading your trading trip along the way
You already know this forex business as a way to get financial freedom, therefore you should be with a strong mentality, like a businessman, he will have a good analysis and strong mentality, this is needed to build a business.
Studying all aspects of forex, you need to explore that there are many kinds of opportunities to make forex a way to earn income.
Almost all brokers provide the opportunity to offer a partnership program with a commission system, you can make this road to get additional income, besides you can trade independently.
Or you can learn more about how to create expert advisors, this will be one of the ways you get income in this field, if there are fellow traders asking you to create robots based on their trading system, you can set prices for these services.
Or if you already have near perfect skills, have a good track record, opening a PAMM manager account is another way to get income with a profit-sharing system with investors, you need to learn about this system with your favorite broker.
The journey to success in the forex business is not obtained only in one night, the long process of achieving it requires various kinds of mental preparation of traders without giving up
Don't let your fears control the thoughts that lead you to leave hope in this field, without hard work and always learning, success cannot be achieved
Your own motivation will determine its success, someone who is highly motivated, he will try to get a dream come true and successful traders have this, he is not easy to give up, always has a strong determination to succeed.
To build motivation, you can learn from the successful traders who have gained wealth from forex, this might trigger your motivation, and or you can often join fellow traders in the forex forum community, thus you feel you have a struggle to reach the peak of success.
Finally, the tips are only to help you achieve success in this forex career, but in the end, success will be determined by yourself, not someone else, while forex business is at risk, be wise with your finances