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Tuesday, 12 August 2008 09:26

As a beginner there are a few things to get your head around. The first and most important thing is that it is easy to lose a lot of money trading currencies and chances are you wil probablyl experience heavy losses at some point. When most traders start they don't have a system, and more importantly they don't have the discipline or psychology required to be successful consistently over the long term.

It takes time and experience to develop systems, strategies and the mindset required to make it as a currency trader. The best idea is to start out small or preferably even use a practice account until you are familiar with the way trades are executed. Do some research so that you can get some basic trading rules in place before you begin trading for real.

Probably the number one piece of advice to listen to as a beginner is "learn to control your losses". This is a lot harder than it sounds, because us humans are an emotional lot and most people find it hard to stick to their plan because of the extreme highs that big wins bring and conversly the deep lows that heavy losses bring. It's very common, especially in new traders for the plan to go straight out the window after one of these events, and I am no exception to this rule.

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Last Updated on Monday, 18 July 2011 03:37