Forex online trading for beginners — there are a lot of so-called experts out there that have no problem propagating idea that with the right strategy, forex will make you rich over night.
The truth is, you're unlikely to make any money starting out. In fact, studies suggest that 90 percent of all retail Forex traders lose money for the first six months of trading.
But there are a few things you can do to increase your chances of getting over the costly learning curve in time to get it together enough to make a profit. The main thing to remember is that the majority for traders lose their money, so if you're not doing what most are doing, you're probably on the right track.
First, when it comes Forex online trading, don't go out and buy the latest trading software and use it on your own — find a trustworthy broker who offers trading software for free when you sign up for an account. Further, don't waste your money on "trading robots."
Second, day trading is a waste of time and money — you need to take the long view and make money gradually over time. The most successful traders make their money from long-term market trends.
Third, Less is more. Don't be taken in by short-term charts, "expert" analysis from gurus and all the bells and whistles. It's usually more of a distraction than it is sound trading advice. The more complicated your system the less likely you'll follow it.
Fourth, don’t look at short term forex charts — they provide little value and won't you’re your Forex online trading. The main things to pay attention to are trend lines, moving averages and support and resistance levels.
Fifth, trade with what you see, not with what you think. If the price of the euro is going up, follow that. I does not matter if you think the euro is over-valued and will eventually go down in value. Follow the market, not your gut!
Sixth, most traders trade the major currency pairs — the euro, US dollar, Japanese yen, British pound, Canadian dollar, Swiss franc and the Australian dollar. But large sums of money can be made by trading the not-so-major currencies, such as the South Africa Rand, the Swedish Kroner, and the Norwegian Crown.
And finally, in Forex online trading, sometimes the best trades you make are the ones you don’t make.
With these tips you can get on the path to profit and increased pips and minimize the costly pain and suffering that most new traders go through. Happy trading!