Forex Trading Tips - Have You Got the Basics Right?

Forex trading is an exciting and interesting pastime, which if conducted correctly can be a lucrative one as well. Of course if you disregard convention and ignore perceived wisdom, then it could prove to be a costly venture just as easily. But as luck would have it there is plenty of advice for new traders to follow, which is aimed at keeping them out of harm's way as much as possible. I say that because you will undoubtedly lose money at some point whilst trading Forex. In fact if the  truth be told, it will probably be beneficial in the long run for you to do so. Because trading is about learning from your experiences. One of the things that traders need to experience is losing money. Trading is not a get rich quick scheme let's be clear about that. Rather it is a commitment or a discipline if you prefer. Just like going to the gym everyday or training for the marathon or a triathlon. Don't get me wrong I am not suggesting that you need run 26 miles or swim 1.5 kilometres every day though a healthy body and a healthy mind will help. But you will need to be dedicated and to “ put in” the hours if you want to succeed in Forex Trading.

Set yourself realistic goals

The first tip for any new traders to follow would be for them to set themselves realistic goals. By that I mean to write down what they want to achieve through trading and how they intend to get there. To begin with this might be a very one sided list with most of the information on the goals side and very little data on how to reach them. But you will be able to populate that side of the list as you grow as a trader. Meanwhile here are a few pointers to help you with your list.
  1. Ask yourself how much time per week can you allocate to trading ? And at what times of the day you will trade ?
  2. How much capital can you afford to commit to trading (remember this is risk capital that you can afford to lose -  not funds you need to pay your bills) ?
  3. What return on your investment / income are you looking to achieve? If you wrote a 7 figure number down here then you probably need to think again.
  4. From where and when will you trade ? You will need fast reliable internet connectivity and be able to concentrate undisturbed when you are trading. Don't forget you could be at your workstation for  hours at a time so you need to get this set up correctly.
  5. What's your knowledge level about trading and the markets ?
  6. Rank yourself on a scale of 1 to 10. Where 1 is a complete beginner and 10 a pro trader. Be honest with yourself here, if you are less than a “7” you will need to think about getting some training and education. Remember that every day can be a learning curve in the markets even for pro traders.

Choose the right Forex broker for your needs

Choosing the right broker is one of the most important things for a trader to consider firstly they should be regulated in a blue chip jurisdiction and they should offer segregated client money accounts. In which client funds are held and that are strictly separated from the firm's own cash. Blackwell Global is regulated by the UK Financial Conduct Authority and its client monies are held in segregated accounts at reputable banking institutions. Check that a potential broker offers the kind products you want to trade and in trade sizes that suit you. At Blackwell Global for instance clients can trade micro lots or 0.01 (one hundredth) of a lot. A standard lot represents 100,000 units of the base currency in a Forex quote. A micro lot is just 1000 units. For further details about the products we offer please see the following links :

Trading software

You should also consider if the trading software offered by a potential broker will suit your needs. Here at Blackwell Global we offer our clients access to Blackwell Trader MT4, a state of the dealing platform that comes packed with charting tools and indicators. What's more the platform operates on desktop PCs and on Android or iOS mobile devices. Giving clients the flexibility to monitor the markets and trade from wherever and whenever it suits them. Perhaps most important  Forex Trading Tip for of all for those new to trading is to practice it! That's why Blackwell Global offers its clients a free demo account that simulates real market trading conditions and price movements. This means that users can familiarise themselves with the operation of our platform and get to grips with trading the markets. All without risking any actual money. This demo account is free of charge and has no time limits.

Educational Material & Research

We have already noted that each day in the market can be a learning curve. With that in mind it's important that you study the markets and read widely. And there is plenty to read. Whether it's getting acquainted with the basics of Technical Analysis and Forex charts, or a blog on central bank interest rate policy. Make sure that you allocate time each week for research and education. I find the commute or an hour on Sunday morning are useful times to do this. Add something about Blackwell Research and Educational Resources here when latter is up

Keep a Trading Diary

Keeping a diary or journal of your trades and the reasoning behind them is a good habit that all traders should get into. Whether you write down comments in a notebook or save images of charts and screenshots, having a record of what trades you did and what you were thinking at the time will prove to be an invaluable tool. By looking back over your trade history you will be able to see what worked and what didn't. You will be able to identify patterns of behaviour both good and bad in your trading. For instance if you are snatching at profits and yet you are running your losses, that's behaviour you will need to correct. Blackwell Trader MT4 keeps a useful log of your activity that you can copy and paste and which could form a useful part of your journal.

Join a trading community

Trading can be a solitary perhaps lonely occupation but there thousands of other traders out there  many of whom will have had similar experiences to yourself. One way to interact with these traders is to join a trading community or forum. There are many of these on line and of course there is always a  conversation to be had on social media sites such as Twitter. Try and pick a forum or community that's suitable for your level of experience, whether it be beginner, intermediate or experienced trader.

Don't be afraid to ask questions

Don't sit there in silence ! if you don't understand how to do something on your trading platform contact your broker's support desk or your account manager. If you are not sure about the possible effects that economic data may have on the markets you can ask your peers in the trading community or throw out a question on Twitter. It's only by questioning and inquiring that we increase our knowledge which in then end is what Forex trading is all about.