Essential Do’s and Don’t's in Forex Trading for Beginners 2019

A 24 hour market with profits, unlike any other, Forex trading is a great investment platform today. You can get started as a currency trader with as little as $100, and continue to grow your account astronomically! However, a field this lucrative without any challenges would just mean easy money for everyone. The reason why only 70-80% of Forex traders see good profits is because there are a number of costly risks involved in foreign exchange, and overcoming these requires meticulousness.
 

For starters, you can go through these dos and don'ts, to understand the basics of Forex trading:

Basic Do's and Don't's in Forex Trading

Forex Trading Do's:
 

1) Be Equipped with a Plan: A proper Forex trading strategy is essential if you want to make it big time as a Forex trader. Along with a trading plan, you have to keep a mental route around trades and know how to dodge risks along the way!
 

2) Trade the Trend: The trend should be your main focus while Forex trading in Malaysia. Always have a keen eye watching for trend formations, and when you get a healthy trade to bank on, take the opportunity.
 

3) Study Forex Charts: Chart movements are something many traders overlook. With a good set of indicators and a trading chart, you can monitor market moves and net the best of trends consistently.
 

4) Learn Trading Tool Usage: Gain complete mastery over the usage of indicators and other charting tools, to ensure you have trends in your pockets and risks don't get in your way. Practice thoroughly on Forex demo accounts.
 

Don'ts in Forex Trading: 
 

1) Avoid Impatience: It is natural to want to see your trades bring home quick results, but the markets don't work that way. Patience is crucial, and you have to see a trade through fully.
 

2) Don't Risk More Than Necessary: Stick to a risk-reward ratio of 2-3%, anything more is just careless wastage of investments.
 

3) Keep Away From Emotional Trading: Getting emotional is normal while Forex trading, but letting emotions control your trades will only result in overtrading and eventually, losses. Avoid trading with too much stress, fear, greed or even confidence.
 

4) Don't Trade Without Stops: Stop-loss usage has to be done wisely to ensure risky trends don't push you off the ledge! Implement apt stops as a part of your Forex trading strategies.
 

These are the most important of things you should do and avoid while Forex trading in Malaysia. As a beginner, you're most vulnerable to making mistakes that will cost you. Get yourself the best start - sign up with WesternFX! Our experts have studied currency markets for years and will give you the perfect platform to grow as a Forex trader. Call us today to know more!