Trading is tricky especially when you are beginner there are a number of things that you will have to consider. The forex trading strategies for beginners can be simple as well as can be highly complicated for troupers.
Whether you are Forex Trading Online or otherwise there are some basics that are common for every beginner.
• Currencies are affected by the global environment and the political events thus one has to keep a regular check on the current affairs or what’s happening around the world
• A smart trader understands when you stay and when to pull out. Leaving yours open for serval day may not be beneficial. Using 30 pips to halt losses with a motive of 60 pips per trade
• Learning and gaining knowledge in term of an hourly chart. Since you are a beginner you should start with an H1 chart and then understand the relationship of varied time frames of the chart
• Keep a rule of limiting your daily trades this is irrespective of the type of trading you are in
• Usually, with beginners, most of them look for quick gains with Online Forex Trading. One should not forget that he/she is a beginner thus it is going to take time for you to become an expert to avoid losses at the beginning itself maintain consistency
• It is highly beneficial for beginners if he/she creates a forex trading account demo as it offers access to trading strategies under real market conditions
ECN Forex trading
Electronic communication network or ECN is the future of foreign exchange markets. In short, ECN creates a bridge between the smaller participants with its liquidity providers via forex ecn brokers. The trading model itself ensures that the ECN brokers do not trade against the clients. Now, how do the brokers gain during the transactions? Well the ECN brokers gain from the commission fees per transaction.
The other benefits associated with ECN forex trading and an ECN account include,
• Secured and private trading activities as the ECN broker will only act as a middleman
• No breaks in between of trades and thus the trader enjoys the continuity
• Enhanced trade execution in another benefit that the trader gains when associated with an ECN broker
As a beginner, there will be times when you will always find other investors are well informed, updated and have more insight and analysis about the markets. This should not worry you, you will come in the same league after some time.