What is the Forex currency trading basics?
Forex is one of the most profitable and rewarding business in the world. At the same time Forex is the most destructive business which can destroy men's hope. Both these statements are basics of Forex trading.
So, to earn on this market we need to gain enough knowledge, which only possible after we learn basics of Forex currency trading and receive enough practice and enough patience. To get theoretical knowledge, we can use Internet, when its open source and there is vast source. A good example is the Interactive Course of Trading provided by FreshForex company.
There are so many Forex forums where everybody can acquire basics of Forex trading and if they don’t understand then they can ask anything. And there are so many ebooks offered by many brokers. Its true that not each free ebook is helpful and important.
And for practical knowledge we need to practice in demo, because demo gives us a great opportunity to trade like real market with demo money, and nowadays most of the forex brokers offer unlimited demo trading. A newbie trader can learn ABC from demo.
You also have to remember that this business bears no hurry. This will sure affect your career in Forex and after gaining some confidence we can start with little money, because real money touches real emotions.
But its always recommended not to use big money at the first time because its will be dangerous because of less knowledge and due to emotion there is a full risk to lose all money within few of minutes.
Stop Loss and money management
Newbie traders don’t like to use Stop Loss when they see some time price reverse and after ups and down come to previous level and its tendency is the worst. But after few days they realize the importance of SL. Each trader especially a beginner has to use SL to survive in the market.
Define how much you can lose and how much you expect to gain. Then, put SL and TP based on this plan.
Every trader should follow his/her own rules and trading plan. Don't be spontaneous.
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