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Basic Knowledge and Useful Tips for New Forex Traders

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Actually Forex is a business that is the same as other businesses because they trade together, the only difference is the instrument. But many do not understand and do not know how to trade in forex so that when they go into the world of forex they experience losses, there are also people who with limited knowledge jump directly into the world of forex, overnight they get a lot of profits but sometimes at the next day they ran out of all their money.

Why it can be happened? The first Forex is not an easy business and both Forex businesses need good Emotional control, this is what caused big profit amateur traders overnight and went bankrupt in the following days. So to overcome the things that will harm us in forex transactions, I will share some tips and knowledge for good traders who want to try to enter into the world of forex as well as those who have jumped into the world of forex.

Basic knowledge about forex is, forex is also a business. The same business as other businesses. We also trade buy at a low price and sell to a higher price to make a profit. If in a conventional business we definitely have stock to trade, in forex we also have stocks that we usually call in “Lot” units, but the difference is if in a conventional business we sell our stock one by one or according to consumer orders, but in our forex business resells our stock (Lot) according to the amount we buy in one transaction. An example is “We open a clothing store and we buy as many as 100 pieces of clothes, then to spend 100 clothes stock, we have to promote it furiously.” But another with forex “When we buy 1.00 lots then when we sell it back we also sells for 1.00 Lot, all we need is proper analysis and no need to get tired of promotion here and there “. A successful trader said, “It’s better that I open the laptop cover every day than I have to open the shop every day, to open a shop I have to find employees to pay shop houses, and look for channels, and also have to compete with other stores.”

Well, what does Forex mean? Forex is also a business that is lawful. What we need is only the accuracy of analysis in the market and following the movements of the world economy.

Now the first tip in forex trading is that we have to know our own capital capabilities in this forex trading, for example we only dare to spend 200 $ of capital to try a business in forex. Then we should open a demo account and the capital we use is also 200 $. Why not just use big capital? like using 3,000 $ or 5,000 $, this is for you to directly train your own “Money Management” and “Emotion”. If you practice using large capital, of course the margin will be strong so that you feel relaxed, but when you use real money and it is smaller than the existing virtual money, surely the margin resistance will be very small, and consequently you will be hit with a margin call, stress , bro, forex is gambling. To avoid what will happen to you, it is advisable to try the demo server according to the capacity that you will spend later.

The second tip is, you better practice on just one currency pair, this is so that you understand the nature of the currency and you are more focused. This is the same as when you are targeting a woman / man, then you have to understand exactly what makes her comfortable and what will make her feel annoyed or upset. You better focus on one woman / man and get his heart, than you approach many women / men and finally fail to get one, instead get the nickname Playboy / Playgirl. There is a saying that says “It’s better to focus on something so that there is a result, rather than dividing your focus into various things and in the end nothing works.”

The third tip is, if you want to trade with MT4 indicator, then use only reputable and high accuracy forex indicators. One of the most recommended forex indicator is Forex Pin Trading System by Dennis Buchhols, which you can learn on https://mytradingtools.com/forex-pin. With Forex Pin you may expect of consistent profit, especially if you are satisfied with ROI of 10% – 20% a month.

The last tip is, you have to look for your own trading style. When analyzing, you must try various indicators and various ways that make you comfortable and you can get profit. Actually all the indicators have nothing wrong and nothing is 100% correct, all you have to do is believe in your own decision and dare to be responsible for the choices you make. You can learn various styles of analysis from the internet and books that read about forex.