InstaForex recommendations for beginners
Your
success on Forex does not depend but on your experience and emotional
stability. Make your way to it
smoother with the help of the following recommendations.
1. Go for the basics
First
of all, one should acquire profound knowledge of financial markets and
technical analysis, to realize the laws according to which Forex
functions and how to make profit on it.
2. Start with a demo account
Starting
trading on real accounts straight away does not help to obtain the
abovementioned knowledge. While you are busy learning the basics, your
capital is literally melting due to your lack of experience. You have a
great opportunity to train your strategies on a demo account for a month
or more. It is impossible to become a professional trader at once.
3. Get to know trading instruments
Before
beginning work on the market, you should thoroughly examine the
technical characteristics of the trading platform you chose and make
everything clear. It will then help you to save much time and money.
4. Learn your rights and liabilities
Read
carefully the documentation, regulating the relations between you and
your broker and make sure you have understood everything. You have the
right to know all the information concerning your work on the currency
market.
5. Begin with small steps
You
can employ micro forex accounts to start with. Assess your skills and
abilities and develop them further operating with minimum investments.
6. Keep your cool
Do not go beyond your psychological comfort zone: if you feel that you are losing your cool, pass to smaller amounts.
7. Do not play with fire
Do
not treat Forex like a money gambling game. As a rule, men of fortune
do not manage to stay on this market long. You want forex work to bring
you stable income. So, do not ever follow the “sink or swim” principle.
Do not put at stake amounts you cannot afford losing.
8. Recognize your defeat
You
should keep in mind that losses as such are usual constituents of
trading on Forex. Make your conclusions and take a philosophical
approach to this fact.
9. Trade within the set limits
Do
not strive for opening as many deals as possible: you may fail to
control them all. Trade rationally. Trading on several markets
simultaneously is rarely successful at first, since they are regulated
by different independent factors.
10. Save the money rather than boost
Bring your risks to minimum, even if it results in less profit. Your
aim now is to learn how not to waste your capital. At the beginning
stage, “saving” is much more important than “boosting”.
11. Consider possible risks
There
is always a possibility of unexpected risks. You should have a certain
financial reserve so that you could use it in case of a force-majeure
situation. Analysts suggest investing not more than 50% of the total
capital in trading and not over 10% - in a deal. Ponder over what part
of these funds you feel ready to lose in case of bad luck. Set your own
level of admissible risk (preferably, not over 5%).
12. Mind Stop Loss
Do
not forget to employ Stop Loss. Improper assets management is the major
reason for losses. Stop Loss is meant for preventing your losses, so
learn to handle it and set it correctly.
13. Keep away from others’ influence
Elaborate
your own strategy. Be careful to change it following someone else’s
advice. One can carry out one deal only for the whole year and appear to
be more successful than many intraday traders. There is no any system
suitable for everyone. No one but you bears responsibility for you
capital. Once you have shaped your own vision of forex trading and
strategy, be critical to what others say to you. Otherwise, you may then
regret having followed someone’s recommendation.
14. Control the situation
A
profitable deal may in fact turn out to be unprofitable. If the trend
seems favourable to you, thoroughly monitor your open positions, shift
stop signals to protect your profit.
15. Do not go against the trend
Remember:
trend is your friend. Hoping to earn profit, some invest their money
when the trend is moving in an adverse direction. Yet, such a strategy
is extremely perilous for a beginner!
16. Retreat if not sure
If
the situation development falls short of what you have expected, close
your positions. You should understand what is going on on the market, as
haphazard actions are unreasonable. If you do not feel sure, retreat
for a while. Do not waste your time trading unprofitably and do not
attempt to have your money back at once. Keep energy to yourself.
17. Make a script of your trading
Fix
all you do on the market in writing. It helps to develop analyzing
skills. Write down the explanations of this or that decision you made,
description of its effects and the conclusions you drew.
