How to start forex trading business from home is the question which leads well a common person who is new in this field and he/she needs to have literate and skillful tutorials and strategies getting successful trades as being a beginners. This article is absolutely free beginner’s guide where you can find right and practical techniques and tips how to trade maximum accurately?
How to Start Forex Trading
Forex trading business is not new, its roots are very old, however, from last 2 decades, within the advancements of informational technology and internet access, and it has become world’s largest business being done widely almost in whole world. This is the business which has two extreme dimensions, if it is done with proper skills and learning, it is world’s best and high yielding business, profiting maximum with minimum investment. Conversely if someone enters in this business without learning and skills, it is known as the world’s most worst business which can let down the trader peak to bottom within moments. So in such circumstances, it is highly need to know proper skills, applications, strategies, to know what the basic principles about technical and fundamental are. Forex trading is one of the best small business ideas popular in whole world.
As being successful trader, I am discussing here top ten tips for forex trading for beginners to do trade with/without investments. Hopefully it will help you properly.
1 – Learn the Basic Skills
As per my experience, this is one and last tip that secure you while you trade forex. Before starting the forex trading, you must need to get basic knowledge and skills about what amount of investment you need to invest. Learn about the graph, candle study and chart’s movement analysis. Most important thing to learn at this stage is to calculate the market level. Believe me if you learn the skill how to calculate market upward or downward level, long term as well short term, I assure you, you will never book loss in forex business.
Unfortunately many new traders try positioning right into the market without any study, skill and experience on the markets they are trading. To build a solid trading foundation, you need to take the time to learn about how the Forex market works (or any market you’re trading) and really get a solid understanding of all the jargon, etc. before you actually dive in and start learning a trading strategy.
Learn the screen watch skills; this is best way to get right approach studying the chart and market movements. Try to fix the graph in candle pattern that is more approaching then line chart or bar chart. Candlesticks Chart is easy to understand and flexible to analyze.
If you are beginner in forex market, always try to trade in currency pair and choose one or two pair to get specialization, do not jump in more currencies, it will not be favorable for you. Brokers are offering standard trades and mini trades; you should try only in mini trades in beginning. Does not play aggressively; always try to keep you cool placing the order for any currency pair. Must obey the level you have calculated by analyzing the chart.
In my 15 years of forex trading experience and teaching, mostly traders book losses due to their un-calculated entries. They just try to run chasing the candlestick whether it is bullish or worst. Chasing the candlestick without studying the technical and fundamental is totally wrong; always remain in the limits of your own study. EUR/USD is my favorite pair to trade.
2 – Try One Trading Strategy and Stick with It
I have seen it often many of beginners in forex trading run behind the different strategies to trade, they want to try all of them without any knowledge, and it is highly dangerous. I recommend you, choose one strategy and try to trade with that strategy keeping mind, more confusions lead you maximum failures.
In my past experience, more than 75% traders have to suffer losses due to changing the trading methods and strategies trade to trade. Logically it is not good one attitude. If you jump strategy to strategy, you are simply operating on false hope and being illogical, and you will lose money.
There are numerous methods, strategies, studies how to take position of an order in forex trading; it is not possible to understand all or many of them for a new trader. Think a while, it will be much better to try one study, not try to all. Mind it, each study and strategy has genuine logics and principle, if you choose any one, definitely it will create perfection in your trading attitude. You cannot let losing trades affect you too much; you really do need ice cold discipline to excel at trading.
I exemplify myself, in beginning I chosen candlestick study with RSI forex chart analysis, I learned a lot of the practical behavior of RSI line on the chart. There were many other studies such as Parabolic Forex Trading, Forex Fibonacci Studies, Elliott Wave Theory and so many others, but I did never try all these. I focused only RSI and Candlesticks, by the grace of God, I gained much more in forex trading. When I felt somewhat how perfection in RSI studies, then I tried others. So I recommend you to follow the tips too that have made me successful in forex trading.
3 – Exercise on Demo Account
3rd one best tip for Forex Trading Strategies for Beginners is to exercise on demo account at least 6 months before starting real trading. Nearly all forex brokers offer demo practice account for learners.
It has come into my experience, many traders have to bear loss just due to one of the reason, and they take start from real entry, although they do not know the basic skills starting the forex trading. Ultimately they will have to face un-wanted circumstances.
It is strictly recommended, if you are thinking to get start in online trading business, pre-plan yourself and get start through demo account and complete your learning process, then come to investment.
Chill and cool thinking strategy is one of the effective tools getting successful trading orders. In current trading patterns, the importance of demo account in forex cannot be ignored. This is true only when you are not a serious learner and you are practicing forex just to see what it is. So you open a demo account and you take some positions just like kid riding a bicycle. You make many things wrong and many things correct. This strategy will definitely be a best tutor.
Why should you use a demo account? What is a lot? Why reliable support is important? Why trading on demo accounts should be kept close to trading on live account, all these questions relate to Forex Trading Tutorial for Beginners. A demo forex account is a sort of a virtual training program where you get to … One of the most important trading strategies in forex.
4 – Always Depend on Your Own Study
How to Start Forex Trading Business from Home largely concerns on your personal studies and learning. I strongly recommend to the beginners to stay with your own analysis, readings, and researches. Do not decide to enter a trade collective suggestion gathered from other traders.
Internet research is nowadays most common thing and numerous well established and reliable website are available where world’s best analysts, fund managers and strategic are telling you rightly, read them, plan yourself, take a decision and place order. Do not hurry up in placing order. Thoroughly study is must before ordering.
When I was beginner, I have exercised such mistakes. I divided my mind in various directions due to collective suggestions that tended me to loss trades. It went for few months, eventually I changed my mind-set and started to depend on my own studies and researches, this was the time when I started to enjoy my life with smart mode of earning.
Keep in mind internet is your best friend, learn proper searching skills, always take opinion through trusted websites and professional analysts, then go to trade.
5 – Analyze the Chart as Your Order Placement
This is not a bookish formula, it is my personal experiment, always analyze the trading chart in order what size and how much long trade you are going to place. For example, if you want hourly trade, analyze the 4 hours chart, daily chart, if you want daily base trade; analyze the daily chart, weekly chart and monthly chart too.
Considered your timeframe, whether you are going to short term trade or long term trade, you must analyze forex trading history relevantly. This is a practical formula and it will surely help you to determine the market trend and entry/exit level.
Mostly people have to bear losses due to lake and poor skills of forex trading history analysis. If you just focus on current chart history and ignore the past, you can never determine the market behaves and it may be or may not be, you earn a profit. This attitude of trading entirely bases on your luck or bad luck.
6 – Always Play in Trend
If you are beginner in forex market, be conscious about market trend changing behave. Perhaps you have listened from the looser of forex trading; this is a crucial market which gives first and latterly takes back. Why?
Selling and buying is a natural behave of forex market, sometime market behaves bullish and sometime volatile. In between these two behaviors, sometime market gets sudden changes in reverse that is called market trend changing. This is most important and worst point where a huge community of un-skilled and non-professional traders beat their heads to the walls because they have faced their forex account burst.
There is no timeframe when market changes its trend. It absolutely depends on what circumstances are going on. Fundamental news plays a vital role in changing the market trends. If I comment some practical hints, mostly trend gets to turn quarterly a year.
Beginners in forex trading do not access the importance of trends, eventually they have to bear lose. Follow strictly, always trade in trends and avoid to trade when market shows trend changing signals.
Do never trade opposite to the trend. For example if market is showing overall buy trend, wait for the market to come lowest level and place buy order, if the market is showing overall sell trend, wait for the market to go upper level and place sell order on your calculated level. If you follow this strategy, you will be maximum secure from loss.
7 – Do Not Re-act when a Trade Goes Against You
Be tolerant while placed trade goes against you. Mostly traders, especially beginners, freak out or over-react at the first sign of a trade moving against them. This is much more of a problem in live trading than demo trading, due to the differences in emotion between them, but it is a problem and it needs to be addressed.
A trade moving against you is a natural thing in forex online trading. I’ve had trades move to within 5 pips of my stop loss and go on to be huge winners after that. If I had freaked out and closed them out before they hit my stop loss, I would have not only lost money, but I would have lost a lot of profit too. This is the main reason why you need to let your trades play out and not close them out early only because they have moved against you.
While you calculate your entry level, you must calculate your stop loss level (the point where you exit). Do never trade without stop/loss order. It will secure your funds and prepare you mentally for the full executions of your level calculations. Your psychology acts a keen role in successful trade.
If you have made your calculations professionally, you must obey your levels. I have examined it in last 15 years practical experience; it is very rare chance that market does not touch its levels. So your patience is most requiring attitude enjoying a successful trade.
8 – Be Realistic
This is most important thing for a new trader to do; he/she should be realistic. I am sorry to say, you are going to start worst and highly volatile business. This business is not few dollars’ business. If someone says you to make money online by investing few dollars, you need to escape from him because he is scammer and have no clue what he is talking about.
Can you make a boat load of money trading the markets? Sure, of course. Perhaps no other profession in the world has as much upside potential as trading. But, that comes at a steep cost; it’s not easy, at least not mentally easy.
You are going to encounter all kinds of mental ‘traps’ and self-sabotage mistakes along the way on your trading journey. Being grounded and realistic is what will keep you on the path to trading success.
If you start getting dollar signs in your eyes you’re going to over-leverage (risk too much) and over trade your account and lose money instead of make a lot of money. You don’t want that.
9 – Always Realize Your Account Size
How to Start Forex Trading Business from Home does not mean you are going to soft playing. This is not a virtual business, it is a real business. Many traders, particularly in Asian countries, act an angry Bull in the ground. This strategy is certainly mistaken.
Always realize your account size and do the trade in limits. Although broker companies offer you leverages but you own investment is important to consider. According to my experience you should place entry order up to 20% of utilization of your whole account size and keep 80% fund backup. If you invest $1000, you should place orders just by $200, I assure you will be secure.
Here I would like to expel out a cheap thought in your mind, the thought that is mostly injected in your mind by unprofessional traders, do you want to know what that is? Sure! That is to trade with a very small amount. It is totally unfair. This is proper business. There is no any possibility; you can earn $1000/monthly by investing $100. It is un-natural thing; earning big profit with small investment may be a jock but not a reality.
I feel a pain mostly when I meet such type of people who always try to comb the hair on hairless skull. I do not ask you to invest heavy funds, I just say please follow 20:80 ration formula to become a successful and secure trader.
10 – Do Not Trade Lot of a Day
Mostly new traders try to do number of trades in a day. They take entries and become more aggressive getting little/big profit from previous trades, eventually they find entrap their selves in any volatile trade and beat their head into wall.
Slow and steady wins the trading race, it’s cliché I know, but it’s so true. Trading with high frequency opens you up to a world of emotional trading mistakes that will destroy your trading account and your self-esteem.
My practical experience shows and I know that for many of you this will unfortunately not register in your mind until it’s too late, but you do not need to trade a lot to make a lot of money. To understand why more clearly, check out this article on high frequency vs. low frequency trading.
I think a single trade with proper analysis, skilled approach is thousands time better than various trades done unprofessionally in a day.
Finalizing my discussion, I can say with full confidence if you learn the secret How to Start Forex Trading Business from Home and want to become successful trader, follow the above mentioned tips, you will gain a lot of. However due to volatility feature of forex trading profit and loss probability always looks moving on the chart.