My Best Forex Trading Tips For Beginners

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<p>Aside from educating yourself first about trading at the forex market, I’d like to share my best forex trading tips or advice I wish someone had taught me before so I’ll then only commit fewer mistakes.</p>
<p>As soon as you realize this early in your trading journey, you’ll gain and acquire a different perspective about the market, you’ll approach the market with the right mindset and expectation.</p>
<p>When I was a struggling trader, I tried to digest numerous technique and strategies out there, I spend countless of hours practicing them, applying it on both demo and the actual live trading.</p>
<p>I spend my weekend to continuously increase my knowledge but nothing seems to be working at my end. Sure, at first it work, but I never gain enough consistency about it. After a several wins, I just keep losing and losing.</p>
<p>Just like any aspiring struggling traders out there, I have enter the forex market with unrealistic expectation.</p>
<p>Believing that if I could profit with a $XXX amount on a daily basis and If I could gain this $XXXX in the next 2 to 3 months I could finally retire from corporate world.</p>
<p>I could just relax, be with my family, do whatever I want, whenever I want and to whom I want. No more stressful job, I don’t need to wake up early, drag my feet to get dressed and go to work while making money trading.</p>
<p>Sure, it’s everybody’s dream, but it is not as easy as you might think it is. It is not just about buying and selling, hitting the buy/sell order button, analyzing the chart, mastering a trading technique/style that resembles who I am as trader that gives me an edge.</p>
<p>It is not only about learning different strategies and technique, managing risk, applying correct position size to name a few. I have fall into the beliefs that the more knowledge I have about trading, or the more technique and strategies I know, the higher chance that I could win and make money at the end.</p>
<p>The hard fact is, it isn’t, after so many trial and errors trying to connect all the dots that represents each information, I still cannot get a consistent result.</p>
<p>Until I finally change my perspective about trading the market.</p>
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<p>I relate the market as a huge/large (whatever you want to call it is) playing field or an arena offering a huge list of game in which I can play any game that I want following the standard, basic or default protocol or condition of the playing field.</p>
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<div>And for whatever game I choose to play, I am free to create my own rules, requirements, techniques, style on how I will play that game with one goal, to win that game. (This is exciting because the owner of the field doesn’t care about how I will play it).</div>
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<div><span><img decoding="async" loading="lazy" class="alignnone wp-image-4915 size-full" title="forex trading tips" src="https://mikeperlas.com/wp-content/uploads/2020/07/stadium-485328_960_720.jpg" alt="" width="960" height="540" srcset="https://mikeperlas.com/wp-content/uploads/2020/07/stadium-485328_960_720.jpg 960w, https://mikeperlas.com/wp-content/uploads/2020/07/stadium-485328_960_720-300×169.jpg 300w, https://mikeperlas.com/wp-content/uploads/2020/07/stadium-485328_960_720-150×84.jpg 150w, https://mikeperlas.com/wp-content/uploads/2020/07/stadium-485328_960_720-768×432.jpg 768w, https://mikeperlas.com/wp-content/uploads/2020/07/stadium-485328_960_720-65×37.jpg 65w, https://mikeperlas.com/wp-content/uploads/2020/07/stadium-485328_960_720-220×124.jpg 220w, https://mikeperlas.com/wp-content/uploads/2020/07/stadium-485328_960_720-178×100.jpg 178w, https://mikeperlas.com/wp-content/uploads/2020/07/stadium-485328_960_720-358×201.jpg 358w, https://mikeperlas.com/wp-content/uploads/2020/07/stadium-485328_960_720-711×400.jpg 711w, https://mikeperlas.com/wp-content/uploads/2020/07/stadium-485328_960_720-800×450.jpg 800w, https://mikeperlas.com/wp-content/uploads/2020/07/stadium-485328_960_720-907×510.jpg 907w" sizes="(max-width: 960px) 100vw, 960px" /></span></div>
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<div>And at any given time, I have the option to take advantage of one of the standard condition of the playing field which is earning money from that game by competing with the default gamer, the owner itself or other players using the rules, system, technique and style I have practice that serves as my gaming edge.</div>
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<p>I have the option to challenge my gaming edge playing with others that if every time I win, there is a corresponding amount in return same as if lose a game.</p>
<p>The amount of money I could earn is limitless, it is everywhere on the playing field. I could get as much money as I want as long as I am winning the game and I have the option to choose playing it as long as the arena is open. Since it is a game, results will either  win or lose.</p>
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<p>Definitely I can not determine the outcome of my next or future game because at anytime I could be challenged.</p>
<p>What I know, and what I can control is how I follow my gaming edge (which is my game rules/system/style) on a consistent basis, that I have practice and master. What I can do is just to implement the technique that I mastered after practicing it on a large series of games, became confident and good about it. I just need to play the game, understand the randomness of the result and focus on those factors that I can control.</p>
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<p>Now when it comes to the market or in trading itself, for me it is the same concept, it offers a limitless opportunities to make money playing the game of trading. I have the options to play it or trade it for as long as the market is open, for as long as my capital is allowed too. I am free to choose on what instrument I want to trade and how I will trade it according to the standard condition of the market. It could be the majors such as EURUSD, GBPUSD, AUDUSD or I can choose to only trade GBPUSD, also those metals, indices.</p>
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<p>I have the options to choose what time frame to trade, daily, 4hr 1hr or even at the intraday time frame. I am free to choose whatever trading technique, style I will used in order to play or trade that game (instrument or currency pair) with one goal – to make profit.</p>
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<p>Whether I’d like to devote my time developing and mastering my technique using a technical analysis focusing on the price action, or a combination of price action and some useful indicators (which is the core concept of what I teach in my <a href="http://www.mikeperlas.com/ptftmcenrolment" target="_blank" rel="noopener noreferrer">Masterclass HERE</a>).</p>
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<p>Those technique is how I want to approach the market, that’s why there are a lot of strategies and techniques, styles that we can choose and learn from, such as the common Support and Resistance, using indicators such as Moving Average, Bollinger Bands, Ichimuoku, stochastic, RSI and so on…</p>
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<p>In the market I am also free to create my own trading system that covers my rules and strategies on how I would like to play (trade) in consideration with what the market condition is. I can create my own rules on how I will use price action, indicator or moving average as part of my technique to create my system that will serve as my trading edge.</p>
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<p>When the market presents an opportunity for me to play (trade), I just need to execute it. I just need to trade it according to the system/techniques and rules that I have mastered and practice over a large sample of trades.</p>
<p>If there is no opportunities in relation to the technique or system that I am familiar with, there is no reason for me to trade. As simple as that. I just need to wait for another opportunities.</p>
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<p>The market doesn’t care about what rules I create and follow or what techniques I am using to trade that currency pair. It doesn’t care if I go all in or only set a small fixed amount I am willing to risk on each trade I will take. The market will just go up or down and its either I win or I lose.</p>
<p>I understand that I cannot control if my next trade will be a winner or a loser. And it doesn’t mean that after a 2, 3 or 4 consecutive wins, I will also win the trade number 5.</p>
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<p>I definitely don’t have the power “na ipagpilitan sa market” the outcome I want for my trade. Since it is a global market, anyone could participate which means if I win, someone has to lose.</p>
<p>It is a zero sum game, someone has to sell in order for me to buy and vice versa. Plus, there’s what you call big players, big boys, big banks, hedge funds, private/institutional firms etc. who also participate, just “one trade” of them against my position, anything can happen!</p>
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<h3>And this is where I came up to my best forex trading tips for beginners:</h3>
<div><span>“I have no control about the outcome no matter how good my strategy or technique is..”</span></div>
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<p>Yes, you read it right, contrary to what you believe in, this is the hard reality about trading. The market will just go up or down and doesn’t care about who I am, what my strategy is, when I should buy or sell, how much should I buy or sell, when I should exit.</p>
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<p>Definitely a random outcome, it just that way it is.  It doesn’t care if I win or I lose, or make money or burn my account.<br />
At the very first place, the market never owe me anything, it never pushes me, or you to trade, right?</p>
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<p>The market doesn’t really care how I trade or how I will make money from trading. It is me who are responsible and in-charge as to how I perceived the information that the market is showing me on the price chart.</p>
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<p>And that perception about the market information will dictates as to how I will approach trading as a whole that surely has a significant impact on my end result if I will be a consistently profitable or I will be in the loosing end which probably you are experiencing too right now.</p>
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<p>The perception about what market really is offering and showing opportunities to me and how I should attempt to interpret that information that will allow me to take advantage of it in order for me to make money.</p>
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<p>I know it sounds confusing right now especially if you are still lacking of experience and exposure in the market but as early as now at least you have the idea and concept on how you will perceive the market.</p>
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<p>I don’t mean that you need to treat it as an ordinary game playing randomly, you have to acquire the necessary skills as a professional trader or gamer. And doing so, requires a specific process. It requires commitment and dedication to master a specific skills.</p>
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<p>And it will definitely take time..</p>
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<p>Now, as a beginner, you have to develop your skills and create your own trading system that will give you the advantage over the market focusing on the things we can control.</p>
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<p>And this system should includes the rules and strategies/techniques that are proven working and profitable after you have tested it over a large sample of trades.</p>
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<p>Here are other forex trading tips that you need to consider while developing your own system.</p>
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<h3>(1). Defining Your Risk Tolerance and Accepting Risk as part of the game</h3>
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<p>No Risk, No Gain as they say. Trading is inherently risky, so you have to understand and accept first the risk involve in trading before venturing into it. Assess your self what $XXX amount are you willing to risk on each of your trade.</p>
<p>It may also vary on the capital that you have. As a trader, our number one priority is to survive the game and protect our capital at all cost.</p>
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<div>You need to set an acceptable risk amount that even if you are in a losing streak, you will still be in the game. Set it as low as possible, you can start by risking only 1%-2% or just set a dollar amount that is within your risk appetite.</div>
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<p>When you set it, don’t deviate and just implement it consistently.</p>
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<p>Accepting risk is like accepting that loses as part of the game, think of it as the cost of doing this business.</p>
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<p>Always remember, anything can happen!</p>
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<h3>(2). Master 1 simple trading strategy or technique.</h3>
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<p>One of our main goal in trading is to identify areas of interest (valuable areas) on the price chart that could offer as a potential buying and selling opportunity to make money.</p>
<p>The most common and popular approach is by using Technical Analysis.</p>
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<p>Basically understanding and focusing the price itself.</p>
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<p>And there are a lot of strategies and techniques using a technical analysis approach. It could be using an indicator, price action or combination. There are already so many methods derived from one technique to another.</p>
<p>And the truth is, we don’t need to know them all or master them all.</p>
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<p>Your goal now is to look for a simple technical analysis approach that will make sense to you. I used price action as my core techniques and just backed it by a simple indicator to help me on the decision making process.</p>
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<p>Now, just like I’ve said, we are free to choose what method or techniques, there is no rule about that.</p>
<p>You need to find what will really make sense to you and learn to master it and make it as your own. Any techniques or strategies to enter in the market will work.</p>
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<h3>(3). Create Your Own Trading Rules</h3>
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<p>After choosing what strategies or technique you will used.</p>
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<p>You have to create rules around it and test it. Stick to those that are working and ditch those that are not.</p>
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<p>Basically those rules should includes and focus on the following areas:</p>
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<p>(1). Entry Rules (When You Should Buy or Sell)</p>
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<p>(2). Risk Management Rules (How Much To Buy or Sell in accordance with your risk tolerance)</p>
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<p>(3). Trade Management Rules (What to do before, during and after your trade)</p>
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<p>(4). Exit Rules ( When to Exit at a Loss and Profit)</p>
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<p>(5). Trading Routine Rules, etc.</p>
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<p>This are just some of those areas that you can focus on, you can also create rules if for example what to do if you are on a losing streak or winning streak.</p>
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<p>Around your trading strategy, you can create also rules how you will used it trading the pullback or breakout or when the market is trending.</p>
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<p>All of this is your responsibility as a trader, the market doesn’t care about it. All you need to do is to create it, tested it, tweak and improved it.</p>
<h3>(4). Don’t Focus First On The Money, Focus On The Process.</h3>
<p>I understand that the main reason why you are here is to make and earn money right?</p>
<p>But it should not be your priority, the money is just a result of what process you have followed.</p>
<p>Remember that everything that you have right now or everything that you see whether in nature,  a living things or just a simple object, there’s a process behind that before it was form or created.</p>
<p>Your mobile phone or laptop that you are using right now undergone specific processes each has unique set of rules/sytem or standard to follow to give a good quality finished product.</p>
<p>Those engineers, designers don’t just focus on the outcome, but mainly on the process how they could achieve such kind of product.</p>
<p>It is the same thing in trading, you have to learn and trust the trading process especially your learning process.</p>
<p>Trading is not just an ordinary thing that you can learn overnight, it take some process and practice to be good at it..</p>
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<p><span><strong><br />
Final Note:</strong></span></p>
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<p>This is my own personal view and perception, it is up to you how you will also interpret it, I am not in control on how you used this information in to your own advantage.</p>
<p>There are still a lot of forex trading tips I wan to share, but this would be a great start for a beginner. Looking forward that it can change the way how you will react and respond to the market.</p>
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<p>I appreciate also if you do have your own forex trading tips that you would like to share, just drop it on the comment box.</p>
<p><em>You might want to read also about the</em> <a href="https://mikeperlas.com/forex-trading-for-beginners/" target="_blank" rel="noopener noreferrer"><strong>“6 Forex Trading Fact For Beginners”</strong> HERE</a></p>
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<div><span># Forex Trading Tips</span></div>
<div><span># Forex Trading Tips</span></div>
<div><span># Forex Trading Tips</span></div>
<div><span># Forex Trading Tips</span></div>
<span></span><span></span><p>The post <a rel="nofollow" href="https://mikeperlas.com/my-best-forex-trading-tips-for-beginners/">My Best Forex Trading Tips For Beginners</a> appeared first on <a rel="nofollow" href="https://mikeperlas.com">mikeperlas.com</a>.</p>