How to Trade Forex for beginners
To be a successful forex trader learning how the forex market operates and how to leverage the features of the market to make profits on a regular basis is very essential. The following essential forex metrics will assist you to learn how to trade forex profitably.
1. Consider the Profit Factor
The profit factor is the total regular profits you make from all your winning trades divided by the mean losses from all your losing trades. If you get a “Profit Factor” that is above one, it signals improvement on your forex trading account. Similarly, a profit factor of less than 1 indicates a diminishing trading account.
2. Focus on hitting Regular Pips every Day/Week/Month
Regular pip per day for day traders is the standard amount of pips the trader will gain or lose from the totality of his trades. If you’re day-trading, you should concentrate on the “Average daily Pips. However, swing traders should focus more on the “Average weekly Pips. The focus of Position traders should be on the “Average Pips per Month”.
Immediately you figure out your standard amount of pips and build confidence in your ability to achieve that average, over and over, and again, you can increase your position size to boost your potential profits.
Control your emotion
The key to succeeding in the forex market as a trader is to avoid allowing the funds you are risking to affect your emotions.
If you notice that when you trade a demo account, you’re recording a great success but are not getting similar results while trading a live account that is a sign that you’re letting emotion about your money control your trade. The best way to make this happen is to think about that amount as just digits on the screen.
You need to take charge of your emotion.
The next thing you need to do is to research before you trade like the hedge-fund traders. Research gives you access to information that you’d probably not have as regular retail traders do not. Just like expert traders, take a comprehensive view of events and then look at trading opportunities through the price action on forex charts. Avoid merely jumping in and out of the market every now and then.
Don’t trade quantity; go for quality trades even if it takes days or weeks for such opportunities to present themselves. Go slow and steady. That’s the only way to win the race
These are all you need:
trading with discipline
Mastering a simple and effective trading strategy like price action
Engaging at the end of day trading
Your ability to manage your money