If you are new to forex trading, there is some vital information you must know in order to succeed. They are very vital because they are part of the tools you will use in earning big.
1. Trade the demo very well: As a beginner, before you start trading with your real money, it is very important to trade on a demo account for a while. The period of demo-trading varies depending on your level of assimilation. Some people demo-trade for one month while others do so for two to three months before grabbing the basics of the trade. During this period, you should develop a strategy that works for you. On the other hand, if you decide to go for social trading, you don’t need any demo-trading.
2. Focus on one currency pair: Part of what you should discover during your demo-trading period is the currency pair that works best for you. In addition, your choice currency pair should be the one that you are sure of adequate periodic information about. It should also be a pair that is well traded so that you will be able to exploit it using the information at your disposal.
3. Don’t trade during the news: If you are a news trader, don’t stake your money immediately the news is released because the market tends to be very volatile at these times. Instead, let the tension go down before opening a trade position.
4. Start with low leverage: One of the attractive features of forex is the offer of leverages. However, as juicy as these leverages could be, they could also be death traps. As a result of this, don’t go for high leverages as a starter because they can lead you to an early grave in the market. Start with low leverages and when you have mastered the market enough to take bigger risks, go for the big leverages.
5. Take control of your trade: The demo-trading period is the time you should discover which currency pair is your best bet and your best trading time. Once you have discovered this, stick to it. The way you trade should never be compared to someone else because even though the market feeds are the same, the way we see them can never be the same.
6. Give quality time to research: Forex trading is one of the most dynamic businesses in the world. Consequently, you should make inquiry into the latest techniques that will put you on the winning side most of the times. No matter how good you are, it is very essential to discover new ways of making money in the forex market.