Forex Trading Tips for Beginners Who Want to Earn
Making money in the Forex market has been appealing to many. In recent times, Forex has become accessible to anyone who has an internet-connected device. Taking into account how accessible and affordable it is to become a Forex trader, a lot of people in South Africa and all over the world are eager to start their careers in this niche.
Even though some may think that to become a successful trader, it is necessary to have financial education and at least experience in this field. We would like to dispel this myth. You can start with learning the basics of Forex trading South Africa for beginners and hone your skills. And our guide will provide you with some useful recommendations from experienced traders.
Tip #1: Stop Trying to Find the Most Effective Broker
Stop searching the Internet with the query “What broker is the best”. Forex brokerage is a very tough business. All brokers are in a fierce struggle to attract new customers and keep old ones. Broker ratings can never be completely accurate or fair. Do not pay attention to them. And it’s certainly not the brokers’ fault that retail traders are losing money.
Find a decent broker with a good name and trade with it for a while. Time will pass, you will mature as a trader, gain more skills and competencies. And then you will find a broker for your new, more professional needs, whether it be automation, execution speed or something else. Or you might want to continue trading with a broker you have initially selected. And one more thing — never compare brokers and the cost of their services. Good services are expensive.
Tip #2: Stop loss is a Necessary Protection Tool
Trading without a stop loss is the main reason why traders lose their accounts. It is a must-to-follow rule. If you are still looking for reasons to trade without a stop loss, it is better to leave trading as a hobby or a source of income and not waste time.
Tip #3: Ignore Signals, News, and Recommendations Around the Market
Be sure that a lot of money is earned around Forex. Indeed, this happens in many other businesses, such as real estate. A huge number of brokers, affiliate sites, course sellers, Forex academies, etc. are fighting for the attention and money of traders. Hence, there is an endless market of forex signals, news, analytics, rates, trading recommendations and so on.
Consuming all this information does not give the trader any benefit. Trading is a kind of activity that requires loneliness, attention to detail, and silence. Let forex businesspeople make money from unsuspecting novice traders. You should better focus on generating new trading ideas, testing them and selecting the best ones for live trading.
Tip #4: Automate Your Trading
It takes a lot of time and intellectual effort, but it’s totally worth it. Automation is the only way to increase your chances of trading success in the 2020s drastically.
If right now you stop trying to develop as a manual trader and focus on automation, then these few months or years will be the best investment. Just stop manual trading right now and study a book or course on trading automation.
Delegating trading to a computer will free up your human resource, while your development will go up instantly. One trading robot does a much better job than a dozen manual traders. Automated trading frees up time and allows you to invest it in new trading ideas and automation tools. Algorithmic trading doesn’t have to be complicated, by the way. The transition from manual to fully computerized trading might take around a year and a half.
Tip #5: Forex Literature: Know What to Read and What Not
For a novice trader, it is a super-problem to find a good book about trading. The reason is not that there is no choice but that the novice trader does not know what to look for. For a person with no experience, it is complicated to understand how to prioritize. So, beginners start reading everything they manage to find. So, years pass, and the result does not get better. Naturally, sometimes reading brings pleasure, but not profits.
The trading literature market is huge and easy to get lost in. And this happens with all novice traders. If you are a beginner trader and want to save years, start with a couple of technical analysis books. But don’t go too far. In the beginning, a basic knowledge of technical indicators will suffice. Then you can move on to money management and automation. Make use of guides and recommendations of a broker you have selected for trading.
All these tips are provided by experienced traders so that a novice saves time and can develop much faster and easier. Focus on the essential information rather than try to find out everything. Nowadays, there is no problem with the lack of information. On the contrary, it is superfluous. And it is quite complicated to determine a really valuable source of information to rely on.