FXOpen Broker

10+ years’
experience in FX

VISIT WEBSITE

Trading Accounts

ECN, STP,
Micro, Crypto

START TRADING

Try Free Demo

Practice Forex trading
risk free

OPEN DEMO ACCOUNT

PAMM Technology

Become a Master
or a Follower

JOIN PAMM SERVICE
Page 1 of 2 12 LastLast
Results 1 to 15 of 25

Thread: 10 Important things for Newbie traders

  1. #1
    Australian business development TaKiii's Avatar
    Join Date
    Nov 2007
    Posts
    143
    FXO Shares
    0
    FXO Bonus
    26.140
    Thanks
    0
    Thanked 26 Times in 5 Posts

    Default 10 Important things for Newbie traders

    Hi guys,

    As someone who works for FXOpen, it is important for us to help you become as successful as you possibly can. Its also important for you to feel comfortable when you are working or learning how to work as a FOREX trader.

    Below you will find a list of things that newbie traders should be aware of before and whilst venturing into retail FOREX trading.

    (1) FOREX trading is not a game

    Although there are many people in the world who treat FOREX as a game if you are planning on making trading a secure form of income, you must not treat it as such.
    It is always acceptable to enjoy what you do for a living, but strategies that could be considered "a coin flip" or taking excessive risks for the thrill is not going to help you in the long term.
    Those that treat FOREX trading as a game, tend to lose their deposits very quickly. This is not good for anyone.

    (2) Beware of the louder people on the internet

    Every human being likes to think the best of all other human beings. Unfortunately, there are many situations where the loudest winners are often the biggest losers. If someone is giving you incomplete information and saying its the greatest thing ever, they most probably are looking for an 'alternate' reward from FOREX trading. Meaning, they are just looking for attention to take the focus off their loses.
    There are many helpful people on the internet, but the best ones are those who force others to learn, rather than claiming to give everything upfront and for free. Be careful when dealing with those people who are openly distributing "PROFITABLE SIGNALS" or "AMAZING STRATEGIES".
    This does not mean you should completely ignore them, as sometimes they too can accidently distribute useful information. Just be very careful with how you use the information they are providing you.

    (3) The review market is run and controlled by brokers

    Deciding what broker to use or what product to purchase? Usually there are a large number of bias/negative reviews on all products from their competition. False votes, false reviews, false statements they exist everywhere be it negative or positive. It is very difficult to trust any product in the FOREX market. So its best to have some sort of a check list to decide on whether or not to use a service or product provider. Heres my check list:

    - Does the company have 24 hour customer service or support?
    - How long has the company been in business?
    - Are there any current or pending legal cases against the business?
    - Do they offer a trial or demo of the product?
    - Is there a specific person I can contact should I have a specific issue without going through the tiers of customer service? I.E if I have an accounting problem, can I contact accounts directly?
    - Do I know anyone personally who uses this product or service? If so, what do they have to say about it?

    There are many lures to products and services in the FOREX industry that can cloud peoples judgement. Keep the check list and you will find a reliable long term partner.

    (4) Beware of the bonus illusion

    Are you looking to join a company that offers you a 200% deposit bonus? Is this online poker?
    If the answer is Yes, then No, you probably should avoid the deposit bonus.
    The profit Margin on retail FOREX products is so low, that it would be STUPID to offer every customer a huge deposit bonus. Unless of course, they know that the likely hood of you being able to withdraw that money is very low.
    Ask yourself this question, where does this bonus come from? Free money? There is no such thing. Offering a tiny insignificant bonus, is a valid bonus because it doesn't take an overly long time to make back, and also the risk of not making it back is dropped significantly.
    Remember, banks can struggle to make 100% in a year, and you are being offered that just to put your money into a company.

    (5) Retail FOREX is not Charity

    One thing that has always been a major part of retail FOREX is the cost of trading. When this trend started, the actual cost of trading was very high. Spreads were around 5-6 for the Majors and trading was not very cheap.
    The market is now as cheap as it is going to get at retail Level (unless you are doing a few yards volume) here are a few warning signs of an illegitimate FOREX brokerage:

    - There is no such thing as 0 fixed spread.
    - There is no such thing as commission less ECN.
    - There is no fixed spread on ECN as it is liquidity based spread.
    - Commission should always be represented by a percentage of volume.

    If a broker does not abide by these rules, then technically they are working for free. And last time I checked the red cross did not open a FOREX company. Best to stick with a broker who's business is run transparent enough to know where they are making their money. Be it from commission, or an increased fixed spread. Or a mix of both. Whichever your option, make sure you know how they make their money.

    (6) Past results do not always represent future performance

    There is always that guy, you know... The guy who made 1 million dollars trading FOREX on AUD/NZD during 2006 (I don't actually have a reference for everyone, but stories are always told). Anyway, he is the guy who is now selling his super dooper expert adviser with results from 2006 showing live account 1$ to 1 million. Guess what? Trading was completely different in 2006 compared to what it is today. Firstly, his pair of choice may have had liquidity changes, cost of trading changes or trade restrictions. So maybe it did work in 2006, but if he is selling a product, it most probably doesn't work anymore. Stay aware from past millionares, although there may be a diamond in the rough the probability of finding it is quite low. You will find more success in creating a trading method that works for you.

    (7) Simplicity is complicated

    One of the most commonly asked questions in FOREX is "WHICH STRATEGY WORKS BEST". Although I find the question irritating personally, since no human being can execute anything identically to another, I am going to try to answer this question.
    The best strategies to choose are the ones you find simple. Yep, thats it.. If a strategy is simple, and can make a positive return Month over month, then its the one for you. For some people trend lines work, for others neural nets work. Either way what I find simple, you may not and vice verse. A Quant grad may find full algorithmic trading simple however I do not. So find what feels simple and easy to execute for you, and make it work. Ignore the superstar trading 50000 orders per day if you are able to simply execute 1 trade per month. Or trade the 50000 orders per day if trading 1 trader per month makes everything complicated.

    Bottom line is, the strategy that works best, is the one that works best for you.

    (8) Document, Document, DOCUMENT


    One thing the majority of losing traders don't do is keep a proper trade diary. Something that has feelings, emotions, reasoning, changes etc in it. The trading platform is great for storing statistical information, but I always recommend that if you are looking to become a trader, you need to document what you are doing. If you don't do it, you will most probably go in circles when it comes to progress.

    Buy a nice diary and keep track of your trading and what happens to cause wins and losses. Even if it means explaining what you are going to spend your profits on, its always good to keep it documented

    (9) Pay attention to the news

    This is one of the toughest parts of being a trader. Learning to force yourself to read all the news possible regardless of whether or not you are a fundamental trader.
    If there is an earthquake, or a volcano erupts, or aliens invade the earth, if you don't know about it, its a bad thing. The reason for this is even if you don't know the effect on the market it gives you a chance to remove yourself from the market until times become more predictable.
    You don't have to trade the news, to trade the news. Removing yourself from unfavorable conditions is trading too.

    (10) Continue your education

    The market is always adapting, so you must adapt with it. Continue educating yourself in the downtime with information and methodology that may help you in the future when the market conditions change. Who knows what will happen in the future, but its always good to have tools in your belt.......Just in case.





    To all the aspiring traders out there I wish you luck on behalf of FXOpen.
    Last edited by TaKiii; 04-09-2012 at 08:30 AM. Reason: forgot to bold T_T

  2. The Following 20 Users Say Thank You to TaKiii For This Useful Post:

    atif58 (06-27-2012), bisnisjutawan (07-20-2013), bostonmert (12-16-2015), cafedeart (04-11-2012), CPA (05-12-2012), FX Thai (04-24-2016), FXOpen Manager (04-09-2012), gameon (11-29-2012), hesham1046 (04-12-2015), learn2biz (04-09-2012), lordjim (06-24-2012), manish v (04-09-2015), maxam (06-27-2012), rajwanbd (09-19-2013), Seema (06-15-2012), taharoyal52 (05-17-2012), usharani (06-02-2012), vital777 (07-05-2012)

  3. #2
    Piplet
    Join Date
    Mar 2012
    Posts
    20
    FXO Shares
    0
    FXO Bonus
    0.510
    Thanks
    0
    Thanked 2 Times in 2 Posts

    Default

    (6) Past results do not always represent future performance
    I agree on this one but it does not mean we don't going to review our past performance. Because if we make mistake before we can make the same mistake again or similar mistake. so history still repeats itself. Its better to understand the before to know the after.

  4. #3
    Piplet
    Join Date
    Apr 2012
    Posts
    1
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 1 Time in 1 Post

    Default

    (10) Continue your education

    I agree in this, we must not stop educating ourselves, our knowledge must no9t be stagnant so that we can be able to adopt changes..

  5. The Following User Says Thank You to ramonramirez For This Useful Post:

    wickybaba (07-15-2013)

  6. #4
    Intraday Master
    Join Date
    Apr 2012
    Posts
    334
    FXO Shares
    0
    FXO Bonus
    3.050
    Thanks
    1
    Thanked 4 Times in 3 Posts

    Default

    im with you but there is other things important and easy than this to the be gainer please write it to be the light to the new trader

  7. The Following 2 Users Say Thank You to sagda For This Useful Post:

    bisnisjutawan (07-20-2013), wickybaba (07-15-2013)

  8. #5
    Piplet
    Join Date
    May 2012
    Posts
    6
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 4 Times in 3 Posts

    Default

    what is most important for the new investors, apart from those already mentioned is that they need to control the greed right after their first earnings and be patient. that is when you start making losses...if you cant control the greed of earning because it does seem very attractive when small trades with small investments give out bigger return.

  9. The Following User Says Thank You to 001 For This Useful Post:

    bisnisjutawan (07-20-2013)

  10. #6
    Piplet
    Join Date
    May 2012
    Posts
    6
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 4 Times in 3 Posts

    Default

    this is an excellent post and really helpful not just for newbies but for all traders. i liked the bonus part which says that we should not run after deposit bonus and that is actually true. thankyou to the writer

  11. The Following 2 Users Say Thank You to 001 For This Useful Post:

    bisnisjutawan (07-20-2013), wickybaba (07-15-2013)

  12. #7
    Intraday Master
    Join Date
    Dec 2011
    Location
    Ivory Coast, Abidjan
    Posts
    431
    FXO Shares
    0
    FXO Bonus
    1.420
    Thanks
    40
    Thanked 33 Times in 29 Posts

    Default

    very helpfull these ten recommandations, will let me reorient my way of seeing in performing my education of trading on forex.

  13. The Following User Says Thank You to CPA For This Useful Post:

    wickybaba (07-15-2013)

  14. #8
    Bullish
    Join Date
    May 2012
    Location
    MALAYSIA
    Posts
    57
    FXO Shares
    0
    FXO Bonus
    1.290
    Thanks
    1
    Thanked 6 Times in 3 Posts

    Default

    its really great , but problem is that we can not keep in mind when we trade , thats i called mind control

  15. The Following 2 Users Say Thank You to shojibur For This Useful Post:

    bisnisjutawan (07-20-2013), wickybaba (07-15-2013)

  16. #9
    sofeenevu
    Guest

    Default

    Thanks for the info. As a newbie, i think this post help other newbies like me. I will try to follow these things to ensure my better position in Forex and minimize the risk factor of my own account.

  17. The Following 2 Users Say Thank You to sofeenevu For This Useful Post:

    bisnisjutawan (07-20-2013), wickybaba (07-15-2013)

  18. #10
    Piplet
    Join Date
    Apr 2012
    Posts
    11
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    1
    Thanked 3 Times in 2 Posts

    Default

    as a newbie have it at the back of your mind that your improvement and profit from trading is gradual and not just a kind of jackpot you can hit from gambling. strife to improve yourself

  19. The Following 2 Users Say Thank You to cdoffx For This Useful Post:

    bisnisjutawan (07-20-2013), wickybaba (07-15-2013)

  20. #11
    In Profit
    Join Date
    Oct 2008
    Posts
    105
    FXO Shares
    0
    FXO Bonus
    0.350
    Thanks
    0
    Thanked 2 Times in 1 Post

    Default

    Useful ten thing to remember . Education is an important thing before entering the market. It will better to trade a demo account and make a trading plan that suit you and the money in your account.

  21. The Following 2 Users Say Thank You to bibhutibhusan chand For This Useful Post:

    bisnisjutawan (07-20-2013), wickybaba (07-15-2013)

  22. #12
    Piplet
    Join Date
    Jun 2012
    Posts
    4
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 2 Times in 1 Post

    Default

    Rule#8 is very important- all good traders must documented their trades and mention on which points they take the decision and unfortunatly they loss the trade they must consider the points that on which factor they loss it. so that points embeded in their brain.

  23. The Following 2 Users Say Thank You to drkhan3 For This Useful Post:

    bisnisjutawan (07-20-2013), wickybaba (07-15-2013)

  24. #13
    Piplet
    Join Date
    Jun 2012
    Posts
    14
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    3
    Thanked 2 Times in 1 Post

    Default

    Thank you for such nice rules. Of course we should keep every thing documented. Otherwise we may forget what factors make us win or lose.

  25. The Following 2 Users Say Thank You to Seema For This Useful Post:

    bisnisjutawan (07-20-2013), wickybaba (07-15-2013)

  26. #14
    Piplet
    Join Date
    May 2012
    Location
    malaysia
    Posts
    11
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    14
    Thanked 4 Times in 2 Posts

    Default

    As a beginner, i think the information are very useful to guide us to become a successful trader. It is part of trading learning and education. I would try avoid putting all my eggs in one basket. If we do, chances are, we will only subject ourselves to unnecessary stress. Find ourselves a nice laid-back hobby or engage in adrenalin-pumping sports. Do something that we will enjoy and provide us with an outlet of distraction for those times when the markets go against us.

  27. The Following 3 Users Say Thank You to dintera For This Useful Post:

    bisnisjutawan (07-20-2013), malenchelon (12-21-2015), wickybaba (07-15-2013)

  28. #15
    Bullish
    Join Date
    Jun 2012
    Posts
    61
    FXO Shares
    0
    FXO Bonus
    2.110
    Thanks
    112
    Thanked 3 Times in 1 Post

    Default

    be patient. is all we need. believe in yourself.

  29. The Following 3 Users Say Thank You to lordjim For This Useful Post:

    malenchelon (12-21-2015), manish v (04-28-2015), rajwanbd (09-19-2013)

Page 1 of 2 12 LastLast

Tags for this Thread

Bookmarks

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Disclaimer
2005-2020 © FXOpen All rights reserved. Various trademarks held by their respective owners.

Risk Warning: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgment as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.

FXOpen Markets Limited, a company duly registered in Nevis under the company No. C 42235. FXOpen is a member of The Financial Commission.

FXOpen AU Pty Ltd., a company authorised and regulated by the Australian Securities & Investments Commission (ASIC). AFSL 412871ABN 61 143 678 719.

FXOpen Ltd. a company registered in England and Wales under company number 07273392 and is authorised and regulated by the Financial Conduct Authority (previously, the Financial Services Authority) under FCA firm reference number 579202.

FXOpen does not provide services for United States residents.

Join us