This article is for Forex beginners. This article is a must read for anyone who wants to start trading or who has only been trading for a few months. That’s because it’s usually possible for a trade to go wrong and all the money will disappear in a matter of seconds. Therefore, we recommend that you trade with as little money as possible and with the minimum trading volume. I will specifically state under what conditions it is best to do it.
To trade, opening an FX account is a prerequisite. When choosing a Forex company, any company that handles major currencies is OK. Since there is almost no price movement in minor currencies, it is not suitable for studying Forex. If you haven’t opened an FX account yet, please refer to the link below. By the way, we recommend opening a real account rather than a demo account. The reason is that I want you to know the pain of stop-loss and the joy of profit taking. In the actual trade, you will experience both pain and moments of joy.
The smaller the deposit amount, the better. If possible, start with around 50,000 yen. Some people suddenly put in a lot of money, but that’s meaningless. Because most beginners won’t win at all in the first few months. Keep your money low as most people lose all of their initial funding.
Let’s do the trading volume with the minimum trading volume. Because most beginners won’t win at all in the first few months. The volume of transactions should be small as most people lose all of their initial investment. If you repeat small profits and small losses, it is unlikely that you will lose the entire amount at once.
currency pairs for beginners are USD / JPY and EUR / USD. Neither is a big price range that moves at once, so it’s kind. By the way, since there is almost no price movement in minor currencies, it is not suitable for studying Forex. Choose a major currency. GBP is not very suitable for beginners because the price movement is very special. Also, try trading thoroughly with one currency pair for a while. It is not recommended to change the market price here and there at first. Because you can’t concentrate on one market and you lose everything.
When actually trading, be sure to specify the stop-loss point and the profit taking point. At that time, I would like the ratio of risk and reward to be 1: 3 if possible. If the risk is -10pips, the reward should be around 30pips. If you go backwards, be sure to stop the loss if the risk exceeds the permissible range. This is because if you cannot stop the loss, there is a high probability that you will lose all your funds. You should be able to set automatic stop-loss with the Forex trading tool, so let’s set automatic stop-loss on the tool.
When to increase funds
It takes at least several months from the time you actually start trading until you win. Then, the point is whether or not you can increase the funds if you can actually win. As a guide, you can increase your funds when the monthly total plus comes out multiple times. However, in that case, it is recommended to gradually increase it instead of suddenly putting in a large amount of money.
Don’t look for the Holy Grail
It is more important for beginners to trade than to win or lose. First of all, please try one trading style thoroughly in one market. Most of the losing traders change various trading methods each time, and as a result, they are all halfway and leave. It’s a very bad thing to shift, and you’ll end up with the same ending as a losing trader.
Those who do not have a trading method
If you have just started trading and have no trading style, or if you do not have a fighting tactic, you can refer to the video of how to win by professional traders on Youtube etc. Hmm. Or you can imitate the method I am doing.
The important thing is to get used to it, not to win or lose
Anyway, the most important thing for beginners is to run first about the price movement of the market rather than winning or losing in the near future. Don’t worry about immediate wins or losses, and continue for at least a few months. Then think about what to do next if you can win.