Currency Exchange Basics
Blessed is he who is poor in spirit. Same for beginners that want to learn how to trade forex. They must keep their patience and learn gradually. Never open a real trading account before you have real understanding and confidence in forex trading. Do not compare with others. Everyone has different learning curve and progress. In virtual demo trading, you can make yourself familiar with different operation strategies and conditions. When the probability of winning grow higher and higher day by day and your monthly profit increases every month, you are well on the way to opening your first real foreign currency trading account.
1. Currency Trading For Dummies: Never Risk What You Can’t Afford To Lose
It takes capital for all kinds of investment including forex trading. You should never use a sum of money that you need for living for forex trading and hope that it gives you a return. This is not investment. This is gambling. I have seen too many people deceiving themselves by calling what they do “investment” while in reality they are merely gambling. Many did not end pretty. The pressure of using a sum of money that you can’t afford to lose would leave you unable to make objective 
decisions and hence increasing your investment risk.
2. Forex Trading For Beginners: Get A Demo Account
This is a must do. Before you risk a dime of your money, get a demo account and practice with numbers. You can get a demo foreign currency trading account easily by doing a google search for forex brokers. Don’t compare with other traders. Focus on your own progress and do what you should do. The one thing absolutely critical for forex trading success is discipline. Make a schedule, decide how long you would practice everyday and stick with it. Monitor your progress by journaling your probability of winning and the account value. Before you notice, you have made a long way on your journey of becoming a great forex trader. Remember, even the biggest forex trader started as a beginner.
3.Basic of Currency Exchange Basics: Never Depend On Luck
When the number of your winning trades exceed the number of your losing ones and your account value is increasing constantly, you might feel very encouraged and think that you have finally grasped the key to forex trading. But don’t make this conclusion too quickly. If you lost $2,000 in 5 trades and make $3,000 in another one, although your account value increased, but that doesn’t mean that you have mastered the skills. You might just be lucky. Be cautious in all your decisions and continue to learn the basics of forex trading.
4.Intuition Without Currency Trading Strategies Is Putting Your Money At Risk
It is not enough to produce winning results in demo accounts, you need to understand forex basics and know the cause of producing winning trades. During your practice, you should aim at developing your personal profiting operation habits. Intuition is very important for investments. But Intuition without strategies is unacceptable and won’t get you anywhere.
5.Foreign Currency Trading Basics: Use Stop Loss
When you are burying your head inside the trades, don’t forget to set a stop loss range and use it to manage your risk so that you won’t suffer huge losses that kick you out of business. The range of stop loss should be determined with reference to the size of your found. Normally it is around 3-10%. When the amount of loss reaches the limit of your tolerance, close the position without regret. Keep yourself cool and do not find excuses to allow yourself go forward like a hopeless gambling addict. And even if the market turn the other way 5 minutes after you closed the position, don’t feel pity because you have get rid of the risk to lose all of your money. You must draft a trading strategy and follow it. You are the master of your trade, don’t become a slave of risk and adrenaline.
You should always control the amount of your trades according to your account value and avoid over-trading. For example, if your account value is less than $3,000, you should maintain only one open position at a time. If your account value is between $3,000 and $5,000, and unless you are very sure that the trend of the market is doing great for you, you shouldn’t maintain more than 2 open positions at a time. If you have $10,000 in your account, it is probably better to keep it under 3.
This is a rough idea of how many open positions to keep at one time. The idea is to estimate the risk you can take and formulate a trading strategy that works safely. Having too many openings at the same time is not good because it is easy to give rise to an uncontrollable loss.
6. Forex Basics: Learn To Consistently Execute Trading Strategies Without Excuse
One of the most devastating mistake you can make in forex trading is to find excuses to avoid closing a position and realizing the loss when you have reached your stop loss point in a trade. If you keep giving yourself false hope and excuse to wait for the market to turn, you would only expose yourself to unlimited loss.
The market is cruel. It won’t turn the other way just because some stupid guy is waiting for it to do that. You would eventually have to give up and close the position anyway, because it may go to a point where it scares you. But the sad part is by that time you already lost a substantial part of your capital. You cannot have too many this kind of experience before you will never come back to forex trading.
You center of this stupidity is clear-greed. Proverb says “So are the ways of every one that is greedy of gain; which taketh away the life of the owners thereof.” It is the worst thing you want to avoid, because it can make lose an amount that you cannot hope to recover and worse still, it would kill you confidence and strength.
You can avoid this kind of mistakes. That is to force yourself to obey the strategy you have set. Once the risk passes the decided region, don’t hesitate, close it.
7.Foreign Currency Trading Basics: Have Enough Money
This advice may sound trivial but it is extremely important. The smaller your account value, the higher the risk. A $1000 account cannot tolerate even one mistake, however, even the biggest forex trader in the world cannot completely avoid making wrong judgements sometimes.
8.All About Forex and Currency Trading: Learn From Mistakes
Mistakes are inevitable. Do not waste time blaming yourself. Treat your mistakes as opportunities to learn. Just like a Christian walking with the Lord Jesus. When we make a mistake, we admit it, repent, push delete and sign back up again. The faster you admit you mistakes, analyze them and learn from them, the faster you grow. Learn to control yourself. Don’t be led by 
emotions and feelings. Know that all traders learn from losses instead of wins. Understand the reason behind every loss trades and walk on the path of righteousness.
9.Renewing Your Forex Trading Concepts: The Greatest Enemy Is Yourself
The greatest enemy of a trader is his/her own greed, impatience, uncontrolled temper, carelessness, egotism. These bad personalities would induce bad trading decisions. Don’t open a position simply because you have nothing to do or you feel bored, instead, follow your strategies and identify profitable opportunities. Even if you only had one trade for 3 days, but that trade brought you handsome profits, it means that you have made a good decision. This takes great patience.
10.Best Forex Trading Education: Journaling Every Reason For Your Trades
For whosoever hath, to him shall be given, and he shall have more abundance: but whosoever hath not, from him shall be taken away even that he hath. If you treasure what you have learnt, you will learn even more quickly. If you don’t, what you think you know would slip through your fingers without even you noticing.
Journaling is one of the action that indicates that you are treasuring what you have learnt. Everyday, take detail record of the causes that give rise to a particular result. Were there any incidents or information that pushed you towards your decision? And what was the profit or loss of that trade? Analyze the situation and ask yourself “what can I learn from this experience?”
You experience will become your best teacher. Next time when the similar situation comes up, your journal will help you make the right decision quickly. And the losing experiences will tell you how to avoid the same kind of mistakes to happen again. I suggest keeping a digital journal, because you can use things like search function to help find what you need to refer to quickly.
11.Learn Forex Day Trading From The Masters: Refer To Experiences Of Others
Your trading decisions should be based on your own interpretation and feeling about the market, but there is great value to look at others’ opinions, too. If your analysis is the same as another seasoned trader, good. But on the other hand, if they differ from each other, you don’t have to panic right away. Look at the reasoning of his/her interpretation and try to compare it with yours objectively. If you are still very confident about your own decision, go for it! If it wins, it wins. If it doesn’t, you learn from mistakes. Either way you come out on the top!
12. Go With The Flow, Not Against It
Get this ancient investment principle on your heart: end losing positions as quickly as possible, prolong profiting positions as long as possible. Another important principle is that never let a winning position to become a losing one. In the case of sudden turn over, choose to close the position without profit instead of allowing it to go negative hoping it would turn around again. All these are base on a wisdom: flow with the current.
13. Never Try To Recover By Trading In A Rush
When you face a loss, keep cool. Don’t let go of your rationality and rush to recover yourself by opening new positions. For most of the time, this would only make things worse. Think about it, if you close a losing position and open a new one immediately after, you are implying that your original forecast and decision were completely incorrect. Do not try to play guessing games with the market. It is always better to miss a supposing profitable opportunity than producing real losses.
14. Best Forex Trading Education: Learn Step By Step, Never Try to Run Before You Can Even Walk
With a humble attitude, refine your trading skills in demo accounts. When your technique becomes more mature and your profit keeps increasing consistently, you decide to enter the real market and try the real thing. But then you will notice the difference between the virtual and the real. It is like a samurai sword fight. You practice with a wooden sword. You familiarize yourself with the skills and feeling of fighting with a wooden sword. But when you fight someone with a real sword, you will suddenly feel that it is a whole different ball game. Suddenly it is a matter of life or death.
You don’t need to risk life in forex trading, but the pressure is just as great. In a demo account, you trade with a risky shift because you know that it is fake. Not a dime of your money is risked. Even if you win the champion in a virtual trading contest, it doesn’t necessarily guarantee that you will do as well in a real account. There is something about forex trading you can only learn when you are trading with your real money. Keep yourself humble, for there is grace for the humble.
15. Do Virtual Trading As If It Is Real
Do virtual trading like it is real. The more you engage yourself in the practice with real seriousness, the quicker you can develop suitable skills and habits that work in the real world. Convince yourself that you are working with a real fund and constantly reviewing whether what you are doing can be done in a real account with real money.
16. Avoid High Volatility During Virtual Operation
Forex trading beginners should avoid time period that fluctuate vigorously and unpredictable. One of these occasions is a New York Sunday night. It is Monday morning in Asia. During this period, currency prices fluctuate and are very difficult to anticipate the changes. Another unpredictable time period is New York Friday, especially during morning. On this day, many people in the market are trying to handle all the trades of the week which may give rise to very unexpected fluctuations. Also, considering the current unstable US economy, many people would consider selling US dollar. If you start learning foreign currency trading, you would feel more confused and less likely to build up a healthy confidence.
17. Practice With Demo Account At A Regular Hour Everyday
At the beginning of your forex trading life, you should fix a time at the same hour everyday to practice virtual trading. This will help you grasp the behavior of different currencies. During different hours of the day, a foreign currency would have a particular kind of behavior. It is very difficult to understand the different condition of changes. Fix time operations would make it easier for you to figure out the up down tendency of a particular currency. Before and after your daily trading session, read forex news and all kinds of information that affects the market, in order to help you make sound trading decisions.
Conclusion
It is difficult for businessmen to succeed in the business world, it is even more difficult for a forex trader to achieve success. Forex trading is not for the lazy. But if you are determined in this aspect, make up your mind and pursue it with diligence, humility and faith. You will reap what you have sowed in due time.