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5 tips for new forex traders

Discussion in 'Forex Beginner Q&A' started by Peter Martin, Feb 24, 2016.

  1. Peter Martin

    Peter Martin New Member

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    5 tips for new forex traders

    Forex trading is full of opportunities but also riddled with pitfalls. The thrill brings in new traders constantly but most likely they are there for the easy money that was promised in an ad somewhere. Unfortunately, these riches are available only for a lucky few who get it right on the first trade. For all the rest of us being careful, having a solid trading plan, good trading conditions by the broker and low fees are a must to stay profitable. So here are 5 tips that could help you push your trading career to the right direction.

    1. Start with a demo account. When you first go out to the world of forex you will have the risk free opportunity to trade on a demo account. This will give almost identical conditions for trading a real portfolio with all the ups and downs of the market. Just be sure that you treat the money on a demo as you would on a real account. This will give you a realistic feeling what could happen to your hard earned cash. Caution though when using the demo to judge the performance of trading systems which have a large number of trades, this is one place where the real results can later be lower as slippage comes to play.

    2. Choose a broker that gives you low trading costs. A big part of any forex strategy staying profitable is the cost you pay on every trade. This is especially true to very active trading styles making 5 or more trades a day. These days the low end of commissions can be as little as $2 per $100,000 traded.

    3. Don’t be lured in by huge bonuses of 100% and more by brokers. A good broker might give you a nice boost to start with a 25-50% bonus and you have to appreciate it as brokers give away their profits even if their trading costs are already the lowest in competition. But don’t run for 100%+ bonus offer as attractive as they may sound, these are mostly cold calculations by low moral brokers to lure you into making large deposits after which you will be riddled with fine print in conditions, withdrawal restrictions and high commissions. You have to understand that these brokers will want to make their money back from you as fast as possible.

    4. Look for ECN/STP brokers. A broker using either of the technologies is more likely to be on your side. Why? Because they don’t keep your trades in house. A STP or straight through processor will send your trades to the open market place and has nothing to win from your losses than a sole B-book broker which trades against you and wins everything you loose and also loses everything you win. You can see the conflict of interest here as they have the upper hand here.

    5. Don’t always go for the highest leverage accounts. While some brokers will offer you 1:1000 leverage on your money this also increases the risk both for you and your broker. Leverage like that means that it is solely backed by the broker you trade with as no prime brokers give leverage like that to the end user serving forex broker. This means it is not doing STP (read point number 4) and just wants you to lose as fast as possible for their gain. A leverage of 1:200 or less is beyond most people’s needs and is something you should go for. For comparison US regulated brokers aren’t allowed to give more than 1:50 leverage.

    Written by TradeWiseFX Team -

    Source - 5 tips for new forex traders | TradeWiseFX
     
  2. orni308

    orni308 New Member

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    Yea these are some basic things that a new trade should always check, demo account gives you a virtual market experience and dont get lured by the leverages as in the beginning you dont have much market experience and you can place wrong trades using high leverages.
     
  3. Fxtrader88

    Fxtrader88 New Member

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    Hi friends

    Recently I've signed up for FreshForex live contest to win a car. It is rather simple. Click here and proceed as I did. I made some snapshots to show that it is quite easy.
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    Just to remind: you can start with just $100 and take part in as many stages as you like. Good luck!
     
  4. Martha

    Martha New Member

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    Yeah these are the basic and very important tips of the forex trading. Demo trading give you opportunity to start trading virtually and get some good experience. This experience will help you to trade real trading when you get real account with your broker.
     
  5. 4xbug

    4xbug New Member

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    More or less demo trading accounts are much similar than the real trading accounts provided by the broker, so whenever new traders trades demo account they get more familiar with trading platform of the chosen broker. I guess new traders should also focus on how to calculate risks and how to invest their capital after taking such calculated risks.
     
  6. AwaberA

    AwaberA New Member

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    I'd recommend to activate no deposit bonus on real account instead of trading with demo. I think the environment of real account is much closer to reality, despite of not investing real money while using bonus. For example, I would trade with $1000 no deposit bonus offered by FreshForex.
     
  7. Paek

    Paek New Member

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    Personally, I also heard about this event from the company freshforeks. As for me it is very profitable action, even after the company did not stop. Now you can take part in the action in which the grand prize "car"
     
  8. Blossom

    Blossom New Member

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    Forex really needs all this, but the most important thing is education or training hard and not let emotions control us so do not do some decisions that make us lose but calm nerves is very important during trading must be training a lot on the demo account to acquire skills
     
  9. AwaberA

    AwaberA New Member

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    FreshForex is always organising cool events like contests and promos))) For example now they're offering cool $1000 no deposit bonus for new clients.
     
  10. Blossom

    Blossom New Member

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    I have check your website, impressive articles and offers for new clients.
     
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