Useful Forex Trading Tips for Beginners

Forex trading tips for beginners range from simple ones, to more complicated ones, depending on the strategy used. Beginner traders can put these to the test.

Good Forex Trading Tips for Beginners Don’t Have to be Too Complicated

Useful forex trading tips for beginners tend to focus on money management, risk control and making use of simple indicators. Most of these tips however are presented with inadequate information. Traders often have questions about these tips, and using them in actual trading is never straightforward. Some good forex trading tips for beginners focus on picking entry points in the market. And traders find that much more exciting that money management tips, yet they are both important. Traders who manage to learn forex trading well, and advance their techniques, tend to twist and modify all of these tips. Using any tip, in its rudimentary form alone, is not of much help in real trading. Then, there is a whole category of trading tips, which many naive beginners follow, and all of these tips are wrong. The use of tight stops for example, is a totally misleading and wrong tip. This is because this old and wrong trading tip fails to deal with probabilities of certain events occurring. Backtesting of trading tips is difficult, if not impossible. Though the one on using tight stops is an exception, it’s easy to figure out that tight stops do not really provide any meaningful protection in actual trading.

Some of the Best Forex Trading Tips for Beginners

Some of the best forex trading tips for beginners are the use of LSS weekly and daily pivots, and the use of the Value Area. The Value Area is more for day traders, whereas the LSS extends out to any time frame, so that even position and full swing traders can use it. Any good forex trading course will probably teach LSS pivot theory and use, to some depth. And if the entire range of forex training provided in that course is extensive enough, it will debunk many bad tips as well. Generally speaking, beginners can achieve good trading relatively fast. But they have to deal with psychological pressures, fear, and be bold enough to bend or even break established trading rules. Most of these rules and tips, are either right or wrong, depending on how they are used. The LSS pivot theory and Value Area prize zone, are two concepts whose way of using is not rigorously defined. Both of these concepts are used to figure out support and resistance levels in the market. And they can still be confusing, because even though price moves beyond a pivot level, and the support becomes resistance (or vice versa). That price breakout beyond the pivot level is a signal that will be good for a finite amount of time only. May be for as little as 30 minutes. Beginners traders need to realize that if the trading day in question is bound to be a sideways day, then all these pivots will have time-limited impact. And when a pivot is no longer relevant, it can be breached again, possibly invalidating the previous signal. Price however does move a lot between pivots, even on sideways days. So much so that traders can make good profits and good use of their trading time.