Top 5 Tips you Must adhere to if you do not want to end up in the Forex graveyard for novices.
1) Get yourself an Excellent Broker: Forex Brokers are a dime to the dozen on the Internet. A few scammers and a sprinkling seasoned pros's. The PipBoxer crew come highly recommended, search the forums and ask experienced traders. Check when they joined and how many posts they've made, if it's over a Thousand then the chances are they know their stuff and will be able to steer you clear from the pitfalls and recommend a class act.
2) When to Trade?: The best times to trade are during peak hours when volumes are at their highest. Reason being that because of the sheer volume of traders the currency is only affected by market forces. During low volume hours, a big player can push the market currency in a completely different direction, so unpredictability plays a major factor.
3) Avoid Guess Work and Have Immense Discipline: This is really a 2 in 1 recommendation. Forex Newbies often, like I myself once was, hang on in there thinking they can guess the market forces or hold out hoping markets might change- Therefore: Discipline is essential, always get out when you should.4) Always Trade During the Highest Trading Hours: By this I mean when the market is most active whatever the currency pair. This is when the market is most stable and is not subject to a big Banks interference which is totally unpredictable.
5) GET yourself Automated Software: An absolute MUST for Forex Novices. Most software packages come with demo accounts where you can practice with play money on live markets before diving in. Some more expensive automated trading software also comes with on-line Forex brokers at hand 24/7 so that eradicates Top Tip No'1 should you choose this root. All automated software trades 24/7 when margins have been put in place and if you've done your homework correctly, you will earn while you sleep- not a bad way to greet each morning!
