If you have decided to delve into the world of Currency Trading you had better have nerves of steel. As a newcomer you had better be ready for quite a few losses to begin with, but once you get it right, you will have even bigger wins.
The very first thing a new currency trader should do is have a stop loss in place to ensure you don’t lose out everything on any one trade. The forex market doesn’t have set opening and closing ours so its always humming with activity. You however need sleep at some point, and you cant be monitoring your trades 24/7. To protect yourself while your not checking your trades, you can implement a stop loss order and trust me it will save you a lot of money in the long run. Check with your forex broker for one that best suits you.
Another great tip is that the best days to trade are definitely Tuesday to Thursday. Mondays are usually “Opening” day and are more geared towards people just getting their initial trades in. Friday however is more of a “Closing” day and you will find a lot of selling happening on this day. That isn’t to say that Friday should be your selling day as well. If you get greedy and hang onto your trades for too long you will be running a huge gamble.
Possibly before you even start trading for real, you should have a play on “Practice” markets. A number of forex brokers offer “practice” trading accounts that use real market values, but with play money. This is a great way to get used to the up’s and down’s of the market.
The last crucial thing you need to know, is don’t go trying to scalp from day one. Scalping is the act of making a lot of small trades for a small amount of profit. But with enough trades the profit slowly adds up. Scalping right from the beginning will never give you time to actually watch and read the market properly. Not only that, but if you are scalping blindly you could be set to lose a lot of money.
And finally, the most important thing in Currency Trading is to take things slow. If you rush into it thinking you are going to be a millionaire overnight then you are sadly mistaken. Take things slow, and eventually you will see a good profit.