Forex Education for Beginners practical advice

This section provides some practical tips and unwritten rules established among players in the market Forex.

Do not play against the market Trend is your friend
The market always has a certain direction. It is important to understand the "mood" of the market and most of the positions open in the direction of the prevailing trend. Other friends, except for the trend in the market is no more.

Buy dips - sell the rallies. Do not catch the peaks - catch strategy
The first assertion is rather humorous character axioms. The basic meaning of the market just is to buy low and sell at the top. It is important to determine when to enter the market - where the bottom, where the top. For the beginning trader should try to determine rather than the top or bottom of the current trends, and correctly understand the dominant mood of the market and build their game on this basis. In this sense, the last statement resonates with the previous ones. For successful games on the market must be more correctly predict the expectations of its members at a time, rather than build the "right" with the academic and technical standpoint forecast market movements.

Not traded on a schedule - a decision must mature. Determine in advance the action script act responsibly
 A very important point in the trade is to determine the moment of entry into the market, as well as, of course, and exit a trade. Do not enter the market with an unclear situation or, if occurring fluctuations do not fit into any of the expected scenarios, and try as much as possible to fix the previously open position, as it is during periods of chaotic motion is greatest risk of loss. Bad habit is when a novice trader, sitting at the computer begins to frantically search tools and the direction in which you can open. Starting work in this case is a superficial analysis and a desire to begin to "work". Serious analysis - is also a job, and its most important stage. Before opening a position you need to pre-determine for themselves the level of choice for the start of trading, to follow the development trend and enter the market in the case of coincidence of trends with your expectations. Sometimes it is not even a single day. And one more thing: defining a plan of action for setting the order, it is important to adhere to these decisions to close a position. Early or late entry into the market, change orders without good reason often leads to unnecessary losses.

Ride on profits long. Cut off losses short. At least - equalizes loss and profits
These two statements are extremely important issue - risk management at work in the market Forex. A novice trader, saw a small profit for the position, often immediately takes her and at the same time can not be solved for a long time to close a losing position in the hope of a favorable change in the course. This is one of the main causes of losses at the initial stage. It is important to be weighed and the approximate volume closed by gains and losses, and the same goes for placing stop orders. Otherwise, in the case of a constant excess of losses over profits longer term lead to an undesirable result. Try "hard" to give up lucrative positions and move to close the gap with a reasonable loss at the slightest movement of the rate mismatch with the expected scenario.

Limit the amount of information. Do not read a lot, read Helpful. Do not mix trade with academic views
One of the most important points is to identify sources of information that will benefit the trader in the transactions. Information on the market for many, it is necessary to identify the sources which can have practical value in transactions. It is important to determine what to use and what to read for the understanding of the market, and not to rush to find any information. Not all assessment information sources and for individual instruments are trustworthy. It is necessary to create an efficient trading system and follow its signals. And one more thing: the real buying or selling is not the same, that the judgment of the market, even if the right to an academic point of view. Some people trade, others argue, and usually they are different people.

Stay cool and calm. Do not rush to sell - the market will never end
And the last. Always keep yourself in hand. A huge amount of loss is due to loss of control. Moreover, excessive euphoria on the profitable position or the total profits in the account is no less dangerous than the nerves and lift up the hands at losses. Today you have lost, but you always have a chance to win. Recorded a loss or a good profit, do not try to immediately enter the market again to "earn more" or "revenge." Try to cool down and reflect on the results, and only then with the "cold" head re-enters the market.