Forex trading like every other skills out there need to be developed over time. You can’t be a consistent profitable trader overnight.
Based on my research, I have found that newbie traders need to learn a lot of tips. And below are few tips you can apply to improve your forex trading skills immediately.
Tip #1 As a newbie, only long in an uptrend market and only short in a downtrend market. You earn more pips/money that way.
Tip #2 Use both static and dynamic moving averages. 20 or 50 simple moving averages would help depending on your trading strategy 😉.
Tip #3: Use stochastic, RSI or MACD to determine overbought and oversold regions. Then enter long position only when price is oversold or enter short position only when price is overbought.
Tip #4: Long at support, short at resistance. Also, don’t trade within a ranging market and make sure you always follow the trend.
Tip #5: Manage risk. I believe nobody should tell to use stop loss and size your position properly. There’s no point trading if you would expose yourself to high-risk that would take away all your accrued profit in a single trade.
It’s better to be humble and set reasonable stop loss so than you won’t loose huge amount of your capital and be humbled by the market.
What do you think is missing in the list? Share it in the comments below 👇