Online Forex Trading: 3 Tips To Radically Transform A Beginner Into A Winning Trader

Online currency trading is a way to achieve riches. But many new entrants to the forex markets fall flat on their face, only to pick themselves up and then repeat the same mistakes, over and over again. Becoming a profitable and reliable trader is actually not such a difficult goal to achieve, but it does require good self-discipline so that you can learn from his mistakes and never repeat them again. Here are 5 tips to help you profit from online forex trading and become a full-time professional trader.

Tip 1 – Logic Versus Emotions

I mention this tip first because you will see this topic in the coin world often.

Some traders claim to trade with “gut” or “gut”. What really happens is that they are weighing the options in their brain before making a trading decision.

The brain is pretty good at approximating and usually comes up with the correct answer. It’s a bit like quickly adding up your purchases: you can often get pretty close, but you’ll rarely get the exact total if you only have a few seconds.

With forex trading, the difference between making a profit and a loss is an extremely narrow razor’s edge. Intuition just won’t work and you will end up losing money if you follow that strategy.

Instead, you need to focus on logic. Logic is always the correct way to make any decision. Logic gives you a reason to make a trade. Never, ever trade unless you have a valid reason. A common mistake is for traders to trade because they are bored. This usually results in quick losses.

Tip 2: Learn as much as possible

The great thing about the world of online forex trading is that there is a wealth of educational material available such as books, videos, and even one-on-one tutorials.

You can read about day trading, swing trading, long horizon trading, trading the majors, trading the minors, news trading and much more.

I advise you to learn as much as possible about the world of forex trading. The more you know, the better trader you will become.

There is a lot of free information, but there is also a lot of paid information. Don’t be afraid to invest in your education. What you learn will be easily recouped many times over in the form of profitable trades.

Tip 3 – Start trading

Finally, you need to start trading with real money. Of course, there is nothing stopping you from using a demo account just to get comfortable with the trading software you are using.

But the moment you start trading for real money, the game changes. Your emotions try to go into overdrive and affect the way you operate.

So how can you learn what it’s like to trade your own money without risking any of it? Unfortunately, that is impossible, but there is a good solution.

Most brokers allow you to start trading with a very low size. Some even offer “microlots.” This is where you can trade as low as a penny per pip. This means that even if the market moves significantly against you, say 100 pips, the most you can lose is one dollar. That’s right, a measly dollar!

But the advantage of trading even at a penny per pip is that you will be trading real money. You will feel what it is like to go from fake money to real money. If you’ve never tried this before, then it can feel pretty deep.

Continue to trade low until you are happy to increase your trade size. When you increase, do it in small increments and give yourself time to adjust.