Mastering Forex

Essential Tips for Beginner Traders

Photo by Clay Banks on Unsplash

As a beginner trader, you must have taken several classes or courses aimed at learning and understanding the basics of forex trading. It is never going to be easy, just like a toddler who starts to make baby steps. You will fail and suck at trading at different times, but always GETUP!!!

The best way to scale up and become profitable as a newbie is to keep things simple while avoiding overly complex trading situations.

Do not forsake these trading tips:

1. Education: Always educate yourself. Financial trading education cannot be overemphasised, as it is the foundation of your trading journey. You can start here for as little as $1, or you can search for free educational sources on the internet.
   Just educate yourself before risking your real money.
2. Create a trading plan: Always create a trading plan before you open your first ever trade position. Most traders are irrational after they open a trade, and their psychology is all over the place. A trading plan can keep all these in check, allowing you to focus on measuring your trading progress.
   A trading plan helps you organise your trades, considering your risk tolerance and psychology. It provides a trader with a general, systematic approach.
3. Monitor your emotions: To become and stay profitable, you have to be rational and not attach so much emotion to your trades. Stay calm when at a loss, and also keep your joy in check when at a profit.
   This is very hard to do, but to stay consistently profitable, you have to keep your emotions in check.
4. Trade with an open mind: Always refine your approach to the market; don’t get ‌stuck on your ideas alone; sell and don’t try to force your ideas on the what the market should do but always react to the market instead. Ask questions and listen to your mentor or any professional trader.
5. Trade within your limits: Do not trade with a capital set aside to pay bills or money set aside for your house rent. You will not become wealthy overnight, but you can actually hit your financial goals in the long run. Overlooking the risks associated with over-leveraging and trading with margin can damage your trading journey. Always trade with proper “risk capital” and also apply the appropriate leverage. You can read more about this in my previous article.
6. Start Slow and Steady: Practicing with a demo account will help you test your trading strategies, while taking it slow and steady requires you to stay consistent and disciplined enough to follow your trading plan. After acquiring the necessary education, you need a lot of discipline to actually stick to a trading plan.

Final thoughts

Becoming an expert trader requires patience, practice, discipline, and consistency over a long period of time. As a newbie trader, do not forsake these trading tips, as they will shape your trading journey in the long run.