FOREX TRADING FOR BEGINNERS

FOREX TRADING FOR BEGINNERS :

In forex trading, you trade currencies. you buy and sell currencies after that the difference is your profit or loss. 

What to trade? 

There are many pairs you can trade like USD INR, USD EUR, USD GBP JPY etc.

Currencies price depends on the current market situation/sentiment.

 

Charts: You have to learn about chart reading and chart patterns. there is always psychology behind every pattern and charts helps you to identify the trend.

some of the chart patterns you must know for forex trading:

1. double bottom or double top

2. rounding top or rounding bottom

3. Flag pattern

4. head and shoulder

5. wedge pattern

6. symmetrical pattern

7. assending triangle pattern etc.

Rules and Tips:

• You have to follow some rules before trading in the forex market. people lose money in the forex market because they do not have rules. 
• They just jump into forex trading to make money but they failed because of a lack of understanding.
• Never over trade, you should know when to stop. Take 1 or 2 trade on a day.
• Have a trading plan because day trading and swing trading needs a plan.
• Never take too much leverage. people lose money because they takes high leverage and after the market goes against them they just go bankrupt.
• Have a risk management plan.
• Observe your actions while trading.
• Write down what you have learned and also write down your mistakes.

EMOTIONS:

Control your emotions because if you trade with many emotions and you have fear then your loss will be definitely Big.

• Happiness: don't be happy if you made a profit.
• Sadness: don't be sad if you made a loss.
• Angry: don't be angry if you lose a big amount. Observe and never repeat this mistake.
• Fear: don't have fear. If you are fearful then forex trading is not for you because trading is a business and business has so many risks. 
• Patience: patience is important in forex trading. this the game of waiting.

Profitability:

• To increase your profit you have to be consistent in learning.
• when you will start to make money then you should learn to maximise the profit.
• you also have to observe the live market because on the live market you will notice your emotions.

Psychology:

• The simple way to improve your psychology is to experience the market for the next few years.
• Another way is to watch historical charts and observe what was the news when the market Falls or Rise.
• also, you should notice and remember most of the things and your memory should be good so that when you will trade then you can easily connect all the dots and make your trade great.

CONCLUSION:

keep focusing on the learning and remember all the important lessons that market teachs you. charts are important because they tells you a stock is weak or strong. keep focusing on points that are given above.