3 Tips for Forex Beginners. You Have To Know This!

It’s actually easy to begin trading binary options or Forex. Occasionally it’s really easy that some folks begin doing it with no prior knowledge or research. This is just what you need to ‘t do because the consequences may be detrimental.
Today, I will focus on three basic skills you should master to become a successful trader. Do you know what skills I am talking about?
Trading platform
This is how the trading platform Meta Trader 4 looks like.
Knowing your trading platform is a must. The most common platforms are MetaTrader 4 and MetaTrader 5. Nevertheless, your broker may offer you some other software tool including an online browser-based platform. (offered for instance by Plus500 or IQ Option). Your forex trading platform will become your home so your knowledge of the platform must be adequate to your trading activities.
What does it mean?
As a beginner, you have to know know how to open a trade with your desired volume. You also have to know, how to set the stop-loss and take-profitlevels.
You must know where to follow the progress of a trade and how to edit the two values (i.e. stop-loss and take-profit) and, naturally, how to close a trade. Usually, you can use keyboard shortcutsto help you with the setting. I recommend you memorize them. But this is not all. Another element the forex trading platform offers is indicators. Indicators are tools you should master at least as much as your forex trading strategy.
TIP: If you are a total beginner I recommend that you read the following articles: Tips for beginners about binary options Explanation of basic forex terms. Are you uncertain as to how and when to use the MT4 platform? Our MT4 series will explain all the essentials.
Initially, it’s not likely that you will be using any of the automated trading systems, automated back-testing, and some more advanced features. These tools are very useful without a doubt, but as a beginner, you will not need them. And even without these tools, the quantity of information to absorb will be enormous.
Familiarising yourself with thetrading platform and the way it works can be done by using a demo account. Demo account is a practical tool that will prepare you so that when you switch to live trading no sound or order setting should surprise you. Pretty much all decent brokers offer demo accounts.
Trading strategy
Even though the next step seems to be difficult, it’s not. Since the number of trading strategies is huge, we offer you some inspiration that you can follow. In order to create a forex trading strategy you don’t need to invent the wheel. Just select a plan that you know and whose notion corresponds with everything you anticipate.
Pick out the stage and examine it on historic data of your favorite currency pair (hottest is EUR/USD). Rewind the stage, allow ‘s state, a couple of months ago, and begin going forward. Write down when you’d have opened and shut a transaction. Notice your losses and gains and make a decision. If you enjoy the plan accept it, or even deny it.
Having identified your trading plan, write the rules down (when to start a position, the way to put stop-loss and take-profit) onto a sheet of paper. In this way you won’t be able to “cheat” yourself and open foolish trades. All your trades have to be opened based on your strategy rules.
Money management
Now, after mastering your trading platform and testing your trading strategy, some more things need to be done. One of them is the basics of money management. Do you know how much you can afford risking in a single trade, what is the maximum loss you have set for a day? And out of curiosity, do you know your trading strategy’s RRR? If you don’t, browse our articles on cash management.
As to the amount of danger, the utmost shouldn’t exceed 1 to 2% of your trading accounts. This way you won’t lose over 3-5 percentage of your trading account every day. There’s not any strict guideline to follow along with as a newcomer, I suggest that you keep a very low profile. The reward-risk-ratio (RRR) suggests how effective your trading plan is. Essentially, reward-risk-ratio steps the distance from the entrance to your stop-loss along with your take-profit sequence and then contrasts the two spaces. When the spaces are exactly the same, then the RRR is going to be 1:1.
Money management is of crucial significance. The majority of the time, it’s money direction which separates winners from losers. For more information details read these posts: our posts on money management.
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