How To Trade Forex With $100
How To Trade Forex With $100
So you Have Your Money And You Opened an account now what? Do you know the basic’s? How to follow a trend? What Time Frame Your Going To Trade? Your System That You Trade With? How much to risk per trade? All These questions and you just want the cash right? Yeah you and a bunch of folks like you have been right here. And the truth is YouTube Makes everything look so easy and showing there bling etc.
You need to have a basic understanding of what it is your looking at to be honest.
Time Frames To Trade
The truth is if you are a new trader and are looking for the easiest way to do this. Trade the weekly charts until you make a profit, Then go down to daily Time Frame.
WHY? Weekly will help new traders get a feel for the markets and how they move. So many folks get into trading and they are on the smaller time frames like the 5 minute, And that is great for the folks that know what they are looking at. But new traders need to take it a little slower, truth be told.
Until You Know
The hardest thing to teach new traders is how to read a chart. Now Look at the chart above and tell me what the trend is?
Did you say this pair is in a down tend? How can you tell? Are you sure? Well if you said down trend you were right, and 97% of retail traders would be trading what way?
If you said short, you would be wrong. You see for some unknown reason most retail traders always try and catch tops and bottoms. Heck I have done the same truth be told. I guess as humans we tend to make things hard and it does not need to be that way.
Follow The Trend?
No Matter what you may think you should always follow the trend. And trade as such. Trust me there will be times in your trading career where you think you can out smart the market. And the market always humbles a fool and his money.
★ You should only buy stocks when there’s a strong uptrend in place, and you should take profits before the stock’s price starts falling again.
★ Similarly, your sell order would be placed when the downward trend is obvious to everyone except for some stubborn bulls and bears who refuse to capitulate (sell). This will help reduce losses on short trades by giving up on them once their future prospects are lost; it also allows traders to capture more of an upside move.
In summary, following the trend means that we need not trade every day but wait for days or weeks where major directional moves happen rather than trying too hard all through out
So how much should you trade at once?
The dreaded word leverage. How much should you risk in one trade? The industry say’s no more than 1% So it will take awhile to build a real account. And where I say real. I mean trading 10-20 Lots at once. And i have seen traders trading 100 lots or 1000 per pip. And they are only in the market for 5-10 pips and they are out. So as far as risk, I always say if you can risk more and it does not kill you???? But with that being said, I can not say you will ever make on thin dime in the markets. Most folks try this for a week or two and give up. I wish you the best in your journey, And check in here from time to time and We might have what your looking for.
David Is A Sixteen Year Veteran In The Forex World. He Gives His Advice On What Works And What Does Not.