When starting to trade Forex, there are two main steps to follow before expecting to start making money intelligently (ie relying on logic and analysis).
The first step is to learn the basics of technical analysis and acquire the necessary financial knowledge to be in a position to assess the impact of the news and statistics. Once well informed, the trader can start practicing, but the initial purpose should be to learn and not to suddenly become a millionaire.
Beginner’s must have in mind to gain first the necessary experience, first with a demo account (for a limited time demo accounts are not always the best way to train, as we have already journal entry automation explained) and then practicing via real trading cautiously, with very small positions.
To gain experience more quickly when starting the actual trading, there is a great tool: The trading journal.
What is a trading journal?
In short, it means to list all your positions in the forex market and their criteria. So you can analyze your trading to identify what works for you and what does not work, then draw conclusions and improve.
The trading journal can take many forms, such as:
* A simple notebook meets style
* An excel spreadsheet
* A word document, etc.
What should you put in your trading journal?
The more detailed the journal is, the better. For completeness, we can add:
– Date and time of entry into position
– Currencies concerned
– Size of the position
– Direction of trade (buy/sell)
– Stop limit
– Unit-time graph used
– Reasons for position
– Date and time position output
– Reason-position output (stop? Limit? Signal contrary? Fear error?)
– Review of the operation
– Free Comments noted that will help you improve