Forex trading might seem simple, but in reality, it is quite complex. Here are some fundamental rules that every forex beginner should follow to maximize their chances of success:

1.Understand the Basics of Forex Trading

Many people enter the forex market without understanding its fundamental principles. They may believe that trading will be easy and that they will get rich quickly, but the reality is far from this. As a beginner, you need to learn how the market operates, the mechanics of market fluctuations, the definitions of pips, points, and ticks, and the differences between bid price, ask price, and spread.

Choosing a broker with a smaller spread allows you to reach profit territory more quickly. Although the forex market offers high leverage, the difficulty of trading can vary across different markets. Understanding the differences between forex, indices, and stock markets will help you select the most suitable market for your trading style.

2.Learn and Stick to One Trading Strategy

Many traders in the forex market act like kangaroos, frequently switching strategies without ever truly mastering any. This approach will only cause you to start over again. As a competent trader, you should:

• Briefly understand various strategies
• Reject those that do not suit you
• Deeply study strategies that match your style
• Choose the simplest strategy
• Continuously practice the chosen strategy

Following rules in practice is crucial, which is why developing a trading plan is essential.

3.Create and Rigorously Follow a Trading Plan

Every trading strategy requires a detailed trading plan. As a novice trader, you need to define the rules for each scenario. Your plan should include:

• When to open and close trades
• Whether to use stop-loss or close trades manually when experiencing losses
• Strategies for closing trades when profitable
• The time frame for trading
• Risk management for each trade
• How to manage ongoing trades
• Use of target prices and trailing stops
• The number of trades you plan to take each day, week, or month

A detailed trading plan reduces confusion during trading. Ensure you have a set of rules and strictly adhere to them to increase your chances of success.

4.Resist the Temptation of False Indicators

No indicator can provide absolutely accurate trading signals. Beginners are often attracted to false indicators that claim to offer high accuracy in trading signals. In reality, these indicators are mostly scams. Common false indicators include:

• Indicators claiming a 99% success rate
• Promises of turning $1,000 into $1 million in a short period
• Indicators with arrows that supposedly predict market movements accurately

These false indicators often exhibit repainting, meaning arrows disappear after market movements change. If an indicator claims to predict market trends accurately, it is likely a scam. Avoid these get-rich-quick schemes to prevent wasting your money.

5.Track and Record Your Trading Progress

Successful traders maintain a trading journal, which includes:

• The forex pairs traded
• The time of trades
• The trading setup used
• Profit or loss outcomes
• Whether the trading plan was followed

By analyzing your trading journal, you can identify issues, understand which strategies work best, and focus on the most effective trading methods.