Last week, you learned that forex trading comes with a risk, which comes with any form of investment be it through stocks or securities. But the risk that comes with currency trading, as we have said, can be lessened through careful study and prudent analysis.
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A sculpture showing the Euro currency sign is seen in front of the European Central Bank (ECB) headquarters in Frankfurt April 7, 2011.
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George SorosYou don't have to earn a degree in currency trading to be able to discern how forex trading works, although there's a lot of free and conveniently available forex education materials or courses around the web. The free forex ebook Introduction to Forex Exchange features the Golden Rules of Forex which are helpful and practical forex tips that streamlines what to keep in mind when you trade your currency pairs. You can also avail of the free forex ebook offered by the award-winning Go Markets by signing up here.
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For the purpose of this article, we collated more free forex tips for beginners in foreign exchange. Additionally, you can peruse our free forex education section to familiarize yourself forex terminologies such as Spots and Forward Trading. But before you do that, here are carefully selected tip for forex trading novices:
Don't get overwhelmed by data. Forex traders that gets overwhelmed by data are more likely to make mistakes. If you ever find the data displayed on your monitor quite overwhelming, don't be afraid to take a break. It is more prudent to stand up, go to the water cooler for a drink or take a walk, than allow yourself the likelihood of making a mistake simply because you were overwhelmed by the data. Relax for a while, and when you are ready to get back to your trading, you can do so with a more energy to boot.
No master key in forex trading. A master key is one that promises to unlock secrets to success. There's no such thing in forex trading. Master keys, like the fictional unicorn or centaurs, don't exist in the real world. No one can guarantee you a sure profit in forex trading. But many will attempt to do so. Don't be fooled.
As previously said above, forex trading do comes with a risk, but this isn't mutually exclusive to forex trading. Risk comes in any other form of investment. However, keep in mind that in forex trading, using study and analysis, the risk can be mitigated.
Being patient has its rewards. A lot of forex traders---especially, the beginners---makes the mistake of expecting a huge profit all at once. Although the possibility is not precluded, making a lot of money all at once is not the general rule. Sure, George Soros made $1 billion in breaking the Bank of England (BOE), but that's rather remarkably exceptional that in fact IBTimes listed it as one of greatest trades of all time.
If the exception is George Soros, the general rule would be more of stock trader Warren Buffet. The later is not known for a single trade or trade idea, but Buffet was surely profitable, having built the bulk of his current portfolio in the 60s and 80s and in varied and numerous industries. The lesson is: you should slowly build your money over a large spread and by employing a consistent forex strategy. That said, by being patient, you can be sure to withstand fluctuations in the forex trading market.
Visit us regularly for more forex trading tips and news. Along the way you might encounter technical terms on forex trading. Our forex education section offers free and accessible materials that explains them. If you are interested in Foreign Exchange, you can increase your Forex Education for Free. Read the Golden Rules of Trading laid down on the e-book from GoMarkets by signing up here.
copied from http://au.ibtimes.com/articles/137539/20110425/3-forex-tips-for-novice-traders-currency-markets.htm
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