Start simple

Speaking of trying things out, we’d always recommend that beginner traders start with a forex trading demo account before they commit real capital. That way, you can ensure that any early mistakes are made in a simulated environment that won’t end up costing you money. Most trading demos use real market pricing, so they’re as close as…

There are two main ways that traders analyse the financial markets: Technical analysis involves looking at an FX pair’s price chart, using indicators and patterns to determine where it is headed next Your choice between the two will dictate how you navigate the markets, and which opportunities you’ll trade. You don’t have to stick to one…

While you’re still setting out, you don’t want to risk blowing your entire account on a single bad trade. You can avoid this eventuality easily enough by limiting the capital you allocate to your positions. The standard FX trade size is one lot, which will give you a large exposure and can see losses mount up quickly….

Making a plan is an excellent start, but to truly trade like an expert you’ll want to keep meticulous records about your progress – noting down the outcome from every position and keeping track of the factors that made it a success or a failure. Luckily, you don’t have to do this all manually. Your…

There are four main styles of forex trading, categorised by how long you keep your positions open: Finally, position traders keep their trades open for weeks or months at a time, looking to take advantage of major trends In general, shorter-term styles are more favoured by FX traders, but all are valid if you have the right conditions….

Another key factor in controlling risk is to manage the money you’re allocating to any given position. Many successful traders stick to the 1% rule, which involves only ever risking 1% of your total funds on any given trade. If, for example, you have £5,000 in your account, your total risk on any position would…