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Forex traders have to know these 7 things before they can start trading:
1) Don't Trade With Indicators - All they are doing is taking up space. Find out how to trade with price movement, and you'll have a better idea of how to trade the market.
2) Understand money management - you could have the greatest trading system in the world, but it wouldn't mean much if your constantly over leveraging your account. Remember, it's a marathon, not a race. You won't be a millionaire overnight, so there is no reason to risk that much.
3) Don't overtrade on your demos - I know that you'll feel like the more you trade, the better off you are going to be. But that is just false. The problem is you are going to get too comfortable with a demo account, that once you start trading with real money, you are going to realize that you are not ready for it.
4) Control your emotions - Nothing can destroy an account faster than emotions. If every single trade causes anxiety. You have to learn to relax and take a deep breath. You won't make it far in trading, if you're constantly having panic attacks.
5) Start with Mini Accounts -Don't start off playing full lots, because I can assure you that you are not prepared for it. Trade with money that you can afford to lose, before you start trading for big bucks.
6) Keep the margin reasonable - If I were to recommend a margin ratio that you should use it would probably be 200:1. It's enough room to play with.
7) Prepare for news - There is always news happening every single day in the world. You have to be prepared. Know what analysts are expecting and what happens if actual results don't match expectations.
1) Don't Trade With Indicators - All they are doing is taking up space. Find out how to trade with price movement, and you'll have a better idea of how to trade the market.
2) Understand money management - you could have the greatest trading system in the world, but it wouldn't mean much if your constantly over leveraging your account. Remember, it's a marathon, not a race. You won't be a millionaire overnight, so there is no reason to risk that much.
3) Don't overtrade on your demos - I know that you'll feel like the more you trade, the better off you are going to be. But that is just false. The problem is you are going to get too comfortable with a demo account, that once you start trading with real money, you are going to realize that you are not ready for it.
4) Control your emotions - Nothing can destroy an account faster than emotions. If every single trade causes anxiety. You have to learn to relax and take a deep breath. You won't make it far in trading, if you're constantly having panic attacks.
5) Start with Mini Accounts -Don't start off playing full lots, because I can assure you that you are not prepared for it. Trade with money that you can afford to lose, before you start trading for big bucks.
6) Keep the margin reasonable - If I were to recommend a margin ratio that you should use it would probably be 200:1. It's enough room to play with.
7) Prepare for news - There is always news happening every single day in the world. You have to be prepared. Know what analysts are expecting and what happens if actual results don't match expectations.
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