Letting profits run and cutting losses is an oft-repeated mantra among traders, and with good reason. For beginner traders, it can be hard to put into action – when you see a trade in the green, it can be tempting to close it immediately and realise the profit. Similarly, accepting a loss can a tricky skill to master.
If you can stick to your plan in the heat of the moment, however, chances are you’ll find your success rate starts to climb.
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…
Leverage is fundamental to forex trading – without it, you’d have to commit huge amounts of capital to earn a return. However, it is important to understand the effect that leverage has on your profits and losses. When you trade using leverage, your provider is in effect lending you the additional funds needed to cover the…
With a plan in place, a style in mind and some practice under your belt, you can begin thinking about placing your first live trades. With dozens of FX pairs to choose from, though, deciding where to start can be tricky. Often, it’s a good idea to choose one or two pairs to begin with,…
One of the best things you can do to ensure that you start trading forex successfully is to make a comprehensive plan before you even consider opening your first position. The more information you include in your forex trading plan, the better. You should think about why you’ve decided to trade forex, plus what your goals are and…
Another key consideration when you’re still in the early days of trading is not to take on too much too soon. Opportunities abound in the FX markets, but successful traders know which ones to seize and which ones to let go. It’s best to begin by only having one trade open at a time, giving…
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…
