6 Tips on How to Learn Online Forex Trading for Beginners
If noted at a glance, online forex trading looks easy, but it also takes a lot of preparation and research. As technology develops, online forex trading has brought major changes to the world market, especially for investors and speculators. To start forex trading, you only need a fairly low initial capital, no special experience and friendly supporting software is needed. However, for beginner traders, who are new to the world of forex trading , need to be aware of the tricks and traps that can drain your money. Therefore, it is necessary to learn enough forex to know it. In this article I will explain 6 tips for learning online forex trading that you can apply to minimize the risks involved in forex trading :
1. Determine your priorities.
Consider your income, assets, debt and financial condition. This is absolutely necessary, do not use the money needed for other needs as capital for forex trading . You have to use money that we might call more money so you can escape thoughts such as eating for tomorrow, paying motorbike credit, because this will damage your concentration in trading on the forex market.
2. Find your trading style.
Get used to using a demo account to find your own trading style. This includes also trying a trading strategy or system that you feel suits your trading style. Maybe you can also adopt other people’s trading systems and modify them to suit your style.
3. Price movements.
Learn price movements or price characteristics. Try several periods of time, from the long term period to the short term period, to make it easier for you to know the long-term and short-term trends according to your trading style. Then try the period for trading directly. Try for some time until you feel comfortable with that period.
4. Determine Entry and Exit points.
Determine support and resistance points. You can use candlestick characteristics or you can also use the Fibonacci indicator to determine support and resistance points. Pay attention and wait for the price when it reaches one of these points, when the price has passed one of the two points, then you are encouraged to open a position.
5. Money management.
You must be able to manage your trading capital. Determine the transaction risk limit, for example; no more than 2% of capital, so if we open a position and experience a loss of up to 2% of capital, you must immediately close the position no matter if you are sure of the decision to open the position.
6. Stop loss.
Always use a Stop loss that will close your position when the price does not match what you predicted. This is important so that your capital is not immediately used up in one transaction.