What makes Forex trading easy for beginners is quite simple and in today’s post I will cover this topic so you finally know where you might be going wrong in your own trading.
Using this helpful illustrated guide, learn the basics to trading with being brand new to Forex trading. Learn from searching the web and watching YouTube videos, understanding risk management and back testing your strategies. All of this will make it easy Forex trading for beginners.
In fact…you could say, it will turn your Forex trading around and make everything seem EASY!
What am I doing wrong, if in fact it should be easy Forex trading?
As a beginner in Forex, the 6 steps you need to take to become a disciplined and profitable trader are as follows within this helpful illustrated guide:
Step #1 Brand New To Forex Trading
Learning the basics to easy Forex trading for beginners, with understanding candles on a price chart. When you first discovered Forex trading, what was your first step?
Did you actually learn the key components to becoming a successful trader. Or did you just start looking for a strategy you could trade with?
If it was the latter, you are not alone!
Many beginner traders start out in this way, not realising you need to learn the basics first to become a successful trader.
When you start out with Forex trading, what you in fact need to be doing. Was to first do research on what is going to be the best platform for you to trade with. Without that knowledge at hand, do you really think you would ever find it easy Forex trading for beginners?
If this was something you have not yet done, or not sure where to start as a new beginner. Then check out what I suggest as the best platform of choice, on one of my other articles I wrote by clicking here.
After you have this knowledge of the best platform of choice with your trading. The next step as being brand new to trading is to learn what a candlestick is all about on the charts.
With this being one of the top topics you need to master to become successful in reading a price chart. Therefore progressing onto understanding how to create your own Forex strategy using my 11 step process by clicking here.
Learn all about Candlesticks within my basics of Forex trading section of the site here.
See what type of candles you need to pay closer attention to and why it matters.
Plus…as shown below, understanding how a candlestick is formed. Therefore giving you a deeper understanding of how the markets move.
Step #2 Searching The Web & Watching YouTube
Looking for a starter strategy to trade with, either searching through google or watching videos on YouTube
Once you have the knowledge of the best trading platform of choice and how to understand candlesticks on a price chart.
The next step in this illustrated guide will be to find a strategy you feel is worth while to trade with.
Why does this matter?
This matters because you will need to do some research on what types of strategies there are. Also, which of these strategies are the best you could implement onto the markets.
It will also allow you to identify what type of trader you are when it comes to trading.
The best place to start, will be most probably how you came across my site today! With searching on google for a Forex trading strategy.
In fact…Why not check out right now on of my other articles I recently wrote on a Forex trading strategy you can use today.
Another great source for finding ideas and strategies is through You Tube. In fact, this has become one of the top places today to search for anything Forex related.
It’s quick and easy to find anything you want to learn or just know more about.
Back to what really matters, and that is what type of trader are you?
Until you really understand the different types of trading there is. You won’t even know what is going to be the easy Forex trading for beginners strategy you want to trade with.
To see what different types of trading there are you could potentially use in your own trading.
Check out the best Forex trading strategies on another article I wrote by clicking here.
Step #3 Risk Management
Protecting your trading account, with understanding risk involved with Forex trading
Easy Forex trading for beginners with risk management
This is the most important part to learning to trade, that most new traders fail to realise. With using good risk management, on each and every trade you take.
If you fail to use proper risk management in your trading it is the number one cause that leads to most traders accounts being blown!
Just as the image represents above, you might as well be burning your money if you ignore this important aspect.
What’s involved with correct use of risk management?
When I talk about the use of risk management, I’m referring to using the correct risk per trade you take.
This also means…
You should be trading with a fixed percentage on every trade you take. This will eliminate any emotions in your trading as well.
If you struggle with controlling your emotions with trading the markets. Then I suggest to read through another trading lesson I wrote….
When using a fixed percentage for your risk on each trade, what I suggest is to either risk only 1-2% of your account size per trade you take.
This means, win or lose you will always only risk 1-2% of your account size on every single trade you take.
One of the worst things you could do as a trader, that will eventually blow your account. Is to increase your risk percentage on a trade if you are revenge trading.
This will include a trader over trading which you read within the previous trading lesson linked above.
Let’s look at an example of how to calculate your risk…
£10000 account size…
2% of that account would be 10000 x 2% = 200
Meaning you would only be risking £200 on a trade at 2% risk. Now, lets say you take a loss on this trade meaning you now only have £9800 left.
Your next trade amount of risk will be as follows…
2% of that new account would be 9800 x 2% = 196
Meaning your next trade would be risking £196. See how the amount risked decreased as your account balance did.
This is using very good risk management!
Step #4 Back Testing To Easy Forex Trading For Beginners
Back testing your trading strategies, to also gain experience within the markets
What I’ve found that most traders do instead, at this step of their learning curve to becoming a disciplined and profitable trader.
Is Trading Forex Strategies Live Too Soon?
How this can dramatically effect your trading, is when you start to trade a strategy live after making a string of winning trades. All of a sudden the strategy starts to lose, this then is where many traders will assume the strategy doesn’t work and will start searching for a new strategy!
Has this happened to you, or did you do the very same mistake?
Without doing any back testing with a strategy, how do you gather the information to know if a strategy will be profitable in the long term.
When a trader does back testing, not only do you learn how profitable a strategy might be, you will also gain chart experience. With more experience you receive, more confident you will become of the strategy you are trading with.
Step #5 Demo Trading
Start with trading on a demo account, to gain more experience and chart time. Even after gaining chart time and experience with back testing. To gain further confidence in your trading abilities so you find it easy Forex trading for beginners.
You need to start with demo trading before attempting to trade in live market conditions.
Just as back testing a strategy, this will allow you to gain more confidence in the strategy you are testing. Also you will learn with simulated market conditions, what it will be like when trading live.
At this stage of your trading journey, it is best to at least trade using a demo simulated account for at least 3-6 months.
Using a demo account is going to help you dramatically with your trading emotions and trade psychology.
How? well… using a demo account will now allow you to see what draw downs you may get using the strategy you are testing.
Therefore, allowing you to see and feel how you will react to trading in these losing conditions. For me, this is going to be the number 1 aspect of your trading you must master to becoming a disciplined and profitable trader.
Step #6 Becoming A Profitable Trader
Finally now is the right time to trade live, with becoming a profitable trader and trading success
Perhaps you are wondering how long it takes to become a profitable Forex trader, we’ll why not check out my latest article on how long t really takes clicking here.
Easy Forex Trading For Beginners Success
Going through the steps I have laid out above, will result with you finding trading success.
When you have a solid strategy that you’ve tested in past and present market conditions. With using good risk management, you are on the correct path to finding trading success!
Remember, don’t give up because a strategy has a string of losers, if you’ve done the chart time, and testing you will know in the long term the strategy works.
Looking for a trading strategy to start testing?
You don’t want to, or just don’t have the time to do the testing yourself. Then you will want to check out my tested and proven trading course here.