Forex Day Trading Tips for Beginners

BUSINESS

F o r e x D a y Tr a d i n g

LegacyFX Introduction

TIPS FOR BEGINNERS

THE FOREX MARKET IS ONE OF THE MOST ACCESSIBLE IN THE WORLD TO NOVICE TRADERS.

FOREX DAY TRADING TIPS FOR BEGINNERS

Accounts can be opened with Forex brokers for little initial capital and there is no legal minimum financial amount to begin trading.

Managing Risk Managing risk in Forex trading means not placing too high a percentage of capital on a single

Stop-loss orders are another way in which Forex traders can help manage risk.

trade. As a rule of thumb, no more than 1% of the account balance should be committed to one trade.

If a trader begins with $1,000, they should be making trades in increments of no more than $10. By keeping the risk per trade small, capital will not be depleted significantly if one or more trades go badly.

Stop-Loss Orders Stop-loss orders are another way in which Forex traders can help manage risk. A stop-loss order automatically ends a trade if the value of the currency goes too far in the wrong direction. Typically, if the trader is expecting a currency to rise in price by 10 pips (units) they would implement a stop-loss order to come into effect if the currency loses 10 pips in value.

A stop-loss order automatically ends a trade if the value of the currency goes too far in the wrong direction.

You can learn more about the unique characteristics of the Forex market by visiting the LegacyFX blog.