10 Tips for Beginners


If you are interested in the concept of Forex, then you already know that this is part of the financial market related to the speculations on the rise and fall rates of the largest countries in the world. Any of speculative markets to a greater or lesser degree associated with a risk of loss of funds invested in order to make profits. Forex market is in this sense, is one of the most risky, so before making a decision to the game be prepared for the fact that some of the money that you have allocated for profit may be lost. If you are prepared to lose money obtained through hard work, look for yourself is another way of multiplying, for example, the contribution of the bank. In this case it would be better if you are on the first step.

Be mentally prepared for the possible loss of the invested funds.


All involved in speculation in the Forex market can be divided into two groups depending on the approach to the Forex, which they profess. The first group — people who want to quickly get the most return on investment with no significant temporal, intellectual and financial costs, and pricing Forex as something akin to a game of roulette at the casino. The second group — the people, suitable for Forex as a serious financial market, deeply studied the theory and are ready to spend a lot of time and effort to learn how to work in this market, and over time to start making a significant and, most importantly, a steady profit. It should be understood that in this sense, Forex is very flexible and gives the field of activity for those, and for others. Range of possible outcomes is very large. With luck, you can not even owning the basics of the market, double the net worth for 1 day. On the other hand, for the largest financial institutions in the west acceptable return on the market is the level of 20-60% per annum on the capital invested. The two poles in a possible strategy in this market. Game approach to quickly earn a lump sum, but it carries the risk of immediate loss of all funds and has no long-term prospects. Market-based approach allows for a certain tenacity to earn decent money with a fairly limited risk. And before you come into the market you have to determine for themselves which of the poles you’ll be closer in their work.

Determine in advance what you want out of the market, for how long, at what cost and risk.


Depending on the chosen strategy games on Forex you need to determine for yourself the time that you are willing to allocate to study the market Forex. If desired, make a quick profit is sufficient to study the size of a book of 200-300 pages, containing the fundamentals and concepts of the market Forex, and proceed to the commencement of operations. The probability of winning will fluctuate around 50% and have a downward trend as the number of transactions. A more serious approach requires initially study the maximum number of available information to fully understand all the basics of the market, the available tools and methods for analyzing and predicting the market that can improve your trading. Not necessarily in their trade use all available means and methods of prediction and analysis, but their knowledge and ability to apply them will work out the most efficient trading system, without which the successful long-term trading is simply impossible.

Highlight the maximum amount of time to study the theory before practice.


It is also necessary to allocate some portion of their life-time, directly to participate in the trading process. Amount of time spent on familiarization with current information, market forecasting, analysis of individual results often in direct proportion to the profits. Reckless operation rarely lead to tangible positive results. And even make a profit in the absence of systematic analysis and the work is quickly lost in the following transactions. Thus, it again rests on time. With a serious approach to trade the Forex market and is often the main profession. From time to time, solely on their own, or may trade in the game «for good luck», or with serious and long-term preparation for each individual transaction. Before entering into trade must be «in the market», that is to know all the latest market information, to know the mood of the market, to conduct its own analysis of the most profound, and after making a decision about the transaction takes time and exposure to determine the exact moment of entry into the market. Thus, a serious approach to trade on the Forex market involves spending huge amounts of time, so you have to decide to what extent this work is in accordance to established schedule and lifestyle.

Determine how much time out of your life you are willing to pay for the work on Forex.


The most important step before making the decision to start a real game in the Forex market is the determination of the amount of money that you are willing to risk for profit. Any speculative market and the Forex market in particular, involves the risk of losing money. Therefore, never invest more money in the game than you are willing to lose. Possible loss, from which not even the professionals are insured, should not be a financial disaster for you. Do not play on borrowed money or the last money set aside for a «rainy day.» The Forex market is not a place where you can quickly and easily multiply the initial capital. It is either a risky game for people with free money and ready for yourself painlessly lose them, or a long and painstaking work to acquire skills that could in the future bring substantial return on invested capital. So initially you have to be mentally prepared for the loss of funds and to determine the exact amount of the loss of which would be relatively painless for your budget. Perhaps this will not happen, but it is better to realize this possibility in advance than to get the financial and psychological impact and a sense of despair after we can not fix anything.

Get ready for the best, assume the worst.


Once you still decided to sample its power in the market Forex, the most important step is to choose a partner, or, in other words, the broker through which to run your operations. Even with the brilliance in the theory and practice of the market in certain moments of the intermediary between you and the market can be reduced «to zero» all your efforts and even cause damage. So, before you start trading, you need to spend some effort to choose a good partner. To do this, you need to collect more information on working in the market brokers, on their financial conditions and reputation. Different brokers offer differing commissions, spreads, interest and trading software. The amount of commission, spread, speed and convenience of the program, as well as the quality of the information about the market can have a tremendous impact on the final result of your work. However, the attractive financial conditions must necessarily be combined with a good reputation and long in the market. Otherwise even earned money can be lost forever due to unscrupulous brokers, which is not at present such a rare phenomenon.

Choose a broker, as a bride.


When choosing a broker, in addition to familiar with the financial conditions of work is imperative to review and test the software, which will be a tool for the execution of your will in the market. Different brokers offer their own programs written in different languages ​​and having different degrees of speed, reliability, convenience, and a different set of analysis tools. Almost all brokers offer the use of their software in demo mode, and some with the help of them and participate in free contests with cash prizes. It is advisable to compare the taste is somewhat similar to the proposed conditions of intermediaries. Be sure to spend at least a month on the game in demo mode, combining it with the study of the theory of the market, will test their knowledge in practice. This will allow you not only to check the quality and usability of software, but also to check again and again to the need for entry into the game for real money. The quality of the program and staff mediator demo largely says what quality end service you can get by opening a live account. Constantly analyze results own work and quality of service. The single most important condition for the demo game is that with virtual money you should try to treat as carefully as the real. Often the game in demo mode can cause you to not only change the proposed mediator, but in general to make a decision about the undesirability of your gaming activities on the financial markets. Not everyone is able to work successfully in the financial markets: it requires a clear mind, endurance, ability to take risks, and many other individual qualities.

Assess the future partner, as well as personal qualities and knowledge in the demo game.


During the demo trading try to clearly identify those tools and information sources that you will use in deciding whether transactions. Also, before the real trade, you need to determine the tactics of the transactions. How often do you open a position, how long you hold open positions at what moments will make transactions, as well as how you will limit the size of potential losses on the transaction, how much capital will be used in the commission of each individual transaction — all these questions, the answers which will have a very significant impact on the final results. In addition, select from a huge mass of information sources and indicators of the market for themselves, those who, in your opinion, are reliable and meet the chosen tactics. The language of professionals is called formulating their own trading system. In financial transactions necessarily need order and system. Intuition and a sense of the market, no doubt, an important factor in decision-making, but they are not in any case be the main reasons for the transaction. Having developed a trading system, you need to back away from it only in the most extreme cases. We must continually analyze the results of their own system, make adjustments, and constantly improve it. Disorderly trading — a recipe for losing money.

Develop their own successful trading system and strictly follow it.


Selecting a trading strategy and tactics, and design your own trading system, do not expect 100% of transactions will be profitable. Any professional makes a profitable and unprofitable transactions. It is important that the number and the total result of profitable trades higher than that of the loss ratio. Best professionals only about 70% of the expected positive result of the transaction. Profit is earned over a long period of time exceeding the expense of the net income of the loss. Therefore single losing trade should not upset you and unsettle. You just need to carefully analyze the reasons that led to losses and to improve own trading system in order to eventually achieve stable growth results.

Occasional setbacks should not become a tragedy.

STEP 10.

Getting real trade, you must firmly understand that the game in demo mode, or, as they say, «on paper» is a very different game to the real «live» money. The difference is comparable to the sensations of the same athlete in training and the World Cup. In a real game every movement rate is expressed in a very specific amount of your money, and it has a huge psychological pressure on people. Even quite successful players at the slightest misfortune to lose his head and capacity for clear thinking and analysis. But excessive euphoria of getting a prize you can play a cruel joke. The way out of this situation may be, so to say, the transition. Playing the most minimal of the available market rates. Even if you have a big enough starting capital may be very helpful for you will test their strength in the game for so-called mini-Forex, where the risks are in the tens and hundreds of times less than the real market. It is quite reasonable to the first game for real money to risk no more than 10% of available funds. This will help to re-evaluate the correctness of your decision to start work on Forex. Statistics say that more than half of the newcomers lost their first investment. And only the most stubborn and persistent over time to achieve results. Therefore, saving the maximum of available resources to the point where you can say to yourself, «I am ready and can do.»

Prepare yourself for the psychological pressure of the market.

Thus, as in any business, the stage of preparation for the work on the Forex market is to be thorough and comprehensive. Only then, when you can say that you know and are able enough and feel the strength, you can begin the first steps in the trade. As the great military leaders — well prepared and planned the battle is half won. Good luck!


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