6 Tips on How to Learn Forex Trading Online For Beginners

If you paid attention at first glance, online forex trading looks easy, but it takes preparation and study deep enough. Along with the development of technology, online forex trading has brought great changes in the world market, especially for investors and speculators. To start trading forex, you only need a low enough initial capital, no special experience required and supporting software are friends. However, for a beginner trader, which is relatively new in the world of forex trading, need to be aware of the tricks and pitfalls that can drain your money. Therefore required a process of learning forex enough to figure it out. In this article I will explain the 6 tips on how to learn forex trading online that you can apply to minimizing risks in forex trading:

1. Determine your Priorities.

Consider the income, assets, debts and your financial situation. It is absolutely necessary, do not use the money necessary for other needs as capital for forex trading. You should use the money that we might call more money so that you can escape from thinking like suppose to eat for tomorrow, pay motorcycle loans, as this will ruin your concentration in trading in the forex market.

2. Find your Trading Style.

Familiarize yourself using a demo account to find your own trading style. This includes also tried the strategy or trading system that you feel fits your trading style. Perhaps you could also adopt other people trading system and modify it to fit your style invitation.

3. The Price Movement.

Study the price movements or price characteristics. Try some period of time, from long term to short term period period, to make it easier to determine long-term trends and short-term in accordance with your trading style. Then try this period to trade directly. Try it some time until you feel comfortable with that period.

4. Specify the Entry and Exit points.

Determine the support and resistance points. You can use the characteristics of the candlestick or can also use Fibonacci indicators to determine support and resistance points. Watch and wait when the price reaches one of these points, when the price has passed through one of the two points, then you are encouraged to do the open position.

5. Money Management.

You should be able to set up your trading capital. Determine the risk limits per transaction, for example; not more than 2% of capital, so when we conduct an open position and a loss to 2% of the capital, you should immediately close the position does not matter if you are confident with the decision of the open position.

6. Stop Loss.

Always use stop loss will close your positions when the price does not correspond to what you predicted. This is important so that your capital is not directly discharged in one transaction only.