To start Forex training for beginners there is a simple why to get started. First read babypips Forex School though once. Now you will retain 30% of the info so read it though again. Now you will retain 60% of the info so read it though again. Now you will retain 90% and you are ready to go onto the next step.
Now set up a free demo account with FXCM and you have all that you need to start trading. It will be $50,000.00 of practice money. Now you can practice what you learned on babypips Forex School
Let me warn you now you will blow out your practice account, but that is why you use a practice account and not real money. Just reset the account back to $50,000.00.
The rule is if you cannot make money with a practice account you will never make money with a real cash account.
You can use trading station or Meta trader (I use Meta trader)
Ok when do you open a real cash account? When you have doubled you practice account to $100,000.00 Now you are ready to open a real cash account with FXCM. It takes $5,000.00 to open account.
Now you can trade 1 micro lot and only 1 micro lot per currency pair at a time, but you can trade as many currency pairs as you want but only 1 micro lot at a time.
When you have increased your account $5,000.00 plus $5,000.00, now you can trade 2 micro lot per currency pair and only 2 micro lot per currency pair at a time but you can trade as many currency pairs as you want but only 2 micro lot per currency pair at a time. Each time you make $5,000.00 you increase your lot size by 1 micro lot per currency pair , so $25,000.00 is 5 micro lots per currency pair , $50,000.00 is 10 micro lots per currency pair and so on.
Now if you lose $5,000.00 you reduce your lot size by 1 micro lot per currency pair so you maintain the 1 to $5,000.00 ratio.
I use Meta trader with a few indicators
Parabolic SAR
10 simple moving average
20 simple moving average
50 simple moving average
100 simple moving average
Average Directional Index (ADX)
Stochastic Oscillator (15, 5, 5)
MACD, short for moving average convergence/divergence
Do not pay for training you can get it all for free on the internet and youtube
Oliver Velez: The Power of the 20-day MA
The Fail Safe "EMA" System 50 -100
Trading With the Multiple Moving Average
How to Trade the Average Directional Index (ADX)
How to Trade Stochastics Like the Pro's Do
How to Trade the MACD Indicator Like a Pro Part 1
How to Trade the MACD Indicator: Trade it Like a Pro (Part 2)
Trading rules
If you follow all the rules, I can not guarantee that you will make money. But if you do not follow any of these rules, I can guarantee that you will lose money
If you can not make money on paper trading, you can never make money on real trading if you are trading with real money there are fees that eat away your money even if you are winning or losing. Also fear and greed are also an issue.
Fear and Greed fear you sell to soon or stay out of a trade because you are afraid of something or greed hold to long or buy an investment because of something.
Never invest more than 10 percent in any one trade. If you only invest no more then 10 percent of your money into something you will only lose a small amount if it is a bad trade if you put all your money into only 1 investment and it goes bad you can lose all your money in 1 trade.
The trend is your friend if the price is moving in a up or down direction it is better to trade in the same direction. Though there are signals showing a change in direction, counter trading going against the trend is dangerous.
Always trade with a stop loss this protects you against a bad trade and it gets you out even if you are not at your computer to take care of it
Never open up your stop once you set your stop if the price starts to get close to your stop it is tempting to move your stop so you do not get stopped out, do not do it
It is better to be out of a trade, wishing you were in, than in a trade, wishing you were out. If you are not in a trade you are not losing you money only the profit you might have made, but if you are in a trade that is going against you, then you are losing real money
Fear the 0 and the Dreaded 00 when price approaches price with a 0 at the end 10, 30, 120 etc. it slows down and goes back down and the 00 like in 100 or 300 or 1200 the price is 10 times more likely to slow down and it goes back down.
No Revenge Trading you just lost a trade so you jump back in with out looking at the trade or reversing the trade to try to make your money back only to have the market go against you again.
No Martingales is what some gamblers do you lose 10 so you bet 20 lose again then you bet 40 etc. best way to blow out your account really fast
Do not listen to the news when the news says an investment is going up you buy and it goes down when the news says an investment is going down you sell and it goes up. The news reports on what has already happened.
Be aware of Pump and Dump. You hear great things about a stock and it is going up so you buy only to have it go down as soon as you buy it goes down. How it works people buy it forcing the price to go up, then they tell you it is great (pump) so you buy it driving the price higher but as you are buying it they are selling it (dump) since there is not underlying reason the price to go up then it falls back to where is was. But worse since every one realizes it is a bad investment, so sell forcing the price even lower.
You can lose 50 percent of your trades and make money. You can win 80 percent of your trades and lose money. If you win big on 50 percent of your trades and lose small you will make money, but if you win small on 80 percent of your trades and lose big on the rest you will lose money
Never fall in love with a trade. You make money on a trade and you think this is great so you invest in it again with out checking what the investment is doing only to lose a lot of money
This is a quick start for Forex training for beginners
Good trading
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