Online Forex Trading For Beginners

6 Tips On How To Learn Forex Trading Online For Beginners

If you look at a glance, online forex trading looks easy, but also required preparation and research is quite deep. Along with the development of technology, online forex trading has brought major changes to the world market, especially for investors and speculators. To start trading forex, you only need a low initial capital, no special experience and support software that is friendly. However, for beginner traders, who are new to the world of forex trading, need to be aware of the tricks and pitfalls that can drain your money. Therefore required forex learning process enough to find out. In this article I will explain 6 tips for how to learn online forex trading that you can apply to minimize the risks that exist in forex trading:

1. Determine your priorities.

Consider your income, assets, debt and financial circumstances. It 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 from thoughts such as eating for tomorrow, paying motor credits, as this will undermine your concentration in trading in the forex market.

2. Find your trading style.

Familiarize yourself using a demo account to find your own trading style. This includes trying out a trading strategy or system that you feel fits in with your trading style. You may also be able to adopt other people's trading systems and modify them to fit your style.

3. Price movements.

Learn price movements or price characteristics. Try some time period, from long term period to short term period, to make it easier for you to know long term and short term trend according to your trading style. Then try that period for trading directly. Try for a while until you feel you are comfortable with that period.

4. Specify Entry and Exit point.

Determine the support and resistance points. You can use candlestick characteristics or can also use the Fibonacci indicator to determine the support and resistance points. Pay attention and wait for the price when reaching one of those points, when the price has passed one of the two points, then you are recommended to open position.

5. Money management.

You should be able to manage your trading capital. Determine the risk limits of transactions, for example; not more than 2% of capital, so if we open position and suffer losses up to 2% capital, you should immediately close the position no matter if you are confident with the open position decision.

6. Stop loss.

Always use Stop loss that will close your position when the price does not match what you predict. This is important so your capital does not run out in a single transaction.