Forex Trading Basics

It is an open secret in forex trading that around 90% of traders lose their hard earned money again. However, this is not necessarily due to the fact that they cannot trade at all, but in many cases it is simply due to misunderstood risk and money management. There is no shortcut on the hard way to becoming a successful trader. As a beginner, you should not look for any convenient shortcuts, because in principle it is just a waste of time. A basic Forex training with a step-by-step guide or a Forex 1x 1 are the best options for long-term trading success. Those who have completed the training can then identify their weak points and work on them themselves.

A good Forex training includes basic knowledge of currency pairs majors, exchange rate fluctuations, trading software, business news, pips, leverage, and of course lot sizes and trading volumes. Only with this important basic knowledge can you, as a beginner, concentrate on good Forex trading strategies.

In order to learn a suitable trading strategy, beginners should first draw up a plan. The strategy is based on how the risk of a particular trade can be filtered out, analyzed and minimized. The plan can then be used to easily determine whether the trade is worthwhile, whether it is too risky or how much you can risk.
To what extent a trader is successful or not depends on how well the trading capital is managed. Risk management is one of the most important factors in foreign exchange trading. It decides whether you can stay in business or whether your account becomes empty. If you don't follow a disciplined method in risk management as a beginner, you shouldn't be surprised if there is no trading capital left.
Especially beginners in Forex trading trade absolutely haphazardly and make their account explode with high leverage effects. If you want to survive in Forex, you can only risk amounts that you can easily get over. In principle, trading is based on probabilities and a risk is always the case. It must therefore be kept as low as possible.
Most traders who lose from the start are dependent on indicators and not on price. Of course, Forex indicators such as the RSI or the ATR indicator is helpful, but if you are not familiar with the patterns for price campaigns and the strategies, you will not get much further with the best trend indicators and trading tools.
Many forex beginners believe that they can win more money with low time frames. However, this makes the settings for the trades more complicated, the price campaigns more confusing and there are often wrong signals, which is why the risk is much greater. It is therefore advisable to trade with longer periods or with the daily charts.
There is no point in blindly following other traders. You can trade in a very different time frame and of course pursue a completely different strategy. Only when you know your own strategy much better can it be advisable to orientate yourself to experienced traders. You first have to have the necessary basic knowledge so that as a beginner you can understand the steps of other retailers.

Most forex beginners dream of winning millions and vacationing in the Caribbean. Traders who want to get rich quickly, usually lose their money very quickly. So you have to be absolutely aware that you have to invest in forex trading first to get attractive returns in the long run, since trading doesn't have much in common with a lottery or other games of chance.
In Forex trading, it is believed that a strategy is good if it yields over 5% profit. Great results average more than 10% a month. Few professional traders regularly earn their money with Forex month after month. The sense of reality should therefore under no circumstances be disregarded when it comes to winning.
Again and again there is talk of controlling emotions in trading. Of course, you don't have to suppress the tears of joy if there is a profitable trend. The main thing is to stay calm about wins or losses and to make the right decisions. Many traders are influenced by feelings of frustration, financial problems or the greed for more money.
Of course, the choice of brokers is also important, as high spreads or complex trading restrictions can make Forex trading more expensive than necessary.