TRADING TIPS -FOREX BEGINNERS
Forex trading is not a simple task as it requires multiple skills. It requires reliable providers, a trade-strategy, and a lot of practice and discipline when managing your trades. Here are some tips when trading Forex.
1. Define your needs and build your trading profile
First of all, you have to decide what type of trader you really are. Are you interesting in intraday trading or in swing trading? Are you willing to devote many hours for trading on a daily basis? What is your appetite for risk? Do you plan to use a Forex robot or receive trading signals from external signal providers? All these questions will define your personal profile.
2. Defining Money Management (MM) -The Trading Triangle
Designing and implementing a money management system is very crucial no matter your trading profile. Money management will protect your funds in the long term and should answer the following questions:
a) What is the portion of your available capital that you are willing to risk?
b) How much risk are you willing to accept?
c) What is the annual portfolio performance that you are targeting?
d) Will you need to withdraw a portion of your trading capital in the next few months?