Any tips for a new FX trader?

[Phoenixtrader]

I’ve been a crypto trader for a while, but the market has been crazy. Although the year started strong for BTC hitting 93k today, I’ll still be diversifying.

One of the main reasons for this is this news..👇🏾

 It's a platform I use and now allows me to trade FX easily. I’ve already looked at the XAUUSD chart, and that will be my first trade.


You can follow my journey as I’ll be sharing it in this thread.

[NotATether]

Yeah, don't trade with leverage. Ever.

Unless you are trading with a strategy with a very high Sharpe ratio (>= 2), do not ever use leverage because you will usually get liquidated.

[Odusko]

Yeah, don't trade with leverage. Ever.

Unless you are trading with a strategy with a very high Sharpe ratio (>= 2), do not ever use leverage because you will usually get liquidated.

Aside from leverage as risk, one other thing to avoid are forex brokers that are not expert in the job, this set of people are the worst various in forex markets, once you get attache to the wrong fake low knowledge broker's, what you get is just hype on minor pair being sold to you as major currency pair to trade on and you have higher lose record, so aside from higher leverage that trigger early liquidations, fake broker's have made forex unattractive and unprofitable to most newbies in forex.

[FirmWars]

"Only trade with the funds that you can afford to lose" This is a general advice that is always given to traders, gamblers and altcoiners, the reason for this advice is because the risk in trading, gambling and buying altcoins is so high that only a few professionals make money from trading and only a few lucky people win in gambling, same with altcoins. If you are done learning and you have professional knowledge and strategies about trading, trade with the amount you can afford to lose, many people made the mistake of trading with the money they can not afford to lose and they lost it and it never came back to them, they regretted their decisions till today.

[Alphakilo]

I’ve been a crypto trader for a while, but the market has been crazy. Although the year started strong for BTC hitting 93k today, I’ll still be diversifying.

One of the main reasons for this is this news..👇🏾

 It's a platform I use and now allows me to trade FX easily. I’ve already looked at the XAUUSD chart, and that will be my first trade.


You can follow my journey as I’ll be sharing it in this thread.

You have to put into consideration the fact that trading comes with a lot of risk involved and this should spur you to do well and learn more risk management skills while applying strict discipline, if you are to succeed in your trading journey.
It would be a great thing to keep a journal or use this space to record your achievements and woes because this would help you and other traders know what and where your biggest losses came from, because often times than not, you broke your own rules rather than the market being wrong and that's why you lose funds.

[Rruchi man]

Yeah, don't trade with leverage. Ever.

@OP, since you want to diversify into forex from crypto, what NotATether means is that you should not use a high lot size.

If you were doing that in crypto, don't take that to forex.

My advice for you since you have been trading crypto for a while is that you should not become overconfident; that is, don't see some things in forex that you should pay attention to as unimportant because you think you know it already from crypto.

[BitMaxz]

That's a good plan for diversifying. This is now pretty common on any crypto exchange where you can also trade forex and gold.
I'm trading XAUUSDT too in OKX futures. There's not so much difference trading them; just stick with your working strategy. If you do DCA on BTC, then apply them also to gold because it has stable growth.

If you are going to trade in future with XAUUSDT, I suggest keeping the leverage low and targeting multiple TP's so that you won't miss those big spikes.

Looking for more tips? Check these links below

- https://github.com/learn-crypto-trading/learn-crypto-trading.github.io
- https://github.com/SpiralDevelopment/Awesome-Crypto-Trading

On the first link, go straight to patterns to aware more about common market structure.

[slaman29]

Don't fall for overnight interest 'easy money'. There's usually a reason for that.

Unless you're really a big player with super long term targets.

Otherwise stick to pips, and on 1:1 like @NotATether suggests

[GreatArkansas]

So, most crypto exchanges now are offering services like this, where in your cryptocurrency trading platform, you can trade any other assets like forex, stocks, or commodities.
For me, it's still the same on how you trade on cryptocurrencies, like the analysis, technical analysis, or some chart patterns. Just expect there will be more or less volatility compared to cryptocurrencies.

Is this what they are offering, tokenised assets, where it is more likely spot market or no?

[Phoenixtrader]

Yeah, don't trade with leverage. Ever.

@OP, since you want to diversify into forex from crypto, what NotATether means is that you should not use a high lot size.

If you were doing that in crypto, don't take that to forex.

My advice for you since you have been trading crypto for a while is that you should not become overconfident; that is, don't see some things in forex that you should pay attention to as unimportant because you think you know it already from crypto.

Ive been hearing about lot size but don't really know how it works . And what's the smallest lot size?

[yhiaali3]

It is good to diversify investments, but if you do not have enough experience, I advise you to stay away from leveraged trading and forex, as there are big pitfalls. It is better to stick to safe assets and trades. If you like to take risks you can try at your own risk.

Don't pay too much attention to the promotional advertisements and tempting offers that come to you through exchanges. They make tempting offers to attract users to try their new products, and of course, they don't care about the great risk or if you lose your money. The important thing is that they get the fees.

[Zigabel]

I’ve been a crypto trader for a while, but the market has been crazy. Although the year started strong for BTC hitting 93k today, I’ll still be diversifying.

One of the main reasons for this is this news..👇🏾

 It's a platform I use and now allows me to trade FX easily. I’ve already looked at the XAUUSD chart, and that will be my first trade.


You can follow my journey as I’ll be sharing it in this thread.

Trading forex is slightly different from Trading crypto, the volatility on XAUUSD can be very high sometimes, the leverage you get trading forex is very different from that you get from Trading crypto mostly depending on the platforms you are using to trade, you have to be mindful to paying attention to some salient differences so it doesn't affect your profitability trading.

[Odogwu-Blockchain]

I've been hearing about lot size but don't really know how it works . And what's the smallest lot size?

I wonder what you planned for yourself when you said you should be trying trading on tradeFi, do you think it's the same with spot, futures, derivative?

Since you are new in it, why not learn it, master it on demo, stuff like that, and then execute.

I don't know if holding works in tradeFi, like buying Gold and hold and not gambling it to avoid liquidations, ill advise you start that way.

[Gozie51]

You can follow my journey as I’ll be sharing it in this thread.

Forex trading included?

I hope you already know that forex is different from what you know with crypto market. I believe it is highly volatile and manipulated because it is under the control of government. There are some under ground news that the public is not aware and a high leverage trade will instantly give you margin call because of the effect of the news. I will try to keep tabs on your performance on the thread though.

[Asiska02]

@OP, since you want to diversify into forex from crypto, what NotATether means is that you should not use a high lot size.

If you were doing that in crypto, don't take that to forex.

My advice for you since you have been trading crypto for a while is that you should not become overconfident; that is, don't see some things in forex that you should pay attention to as unimportant because you think you know it already from crypto.

The market conditions in crypto and forex may look similar but it is only when you’re into forex you’ll be able to tell more the difference it has in come aspects to crypto, don’t forget to take note of those things as they’ll serve as your guide in knowing how to take calculated risks during your course of placing trades and knowing the lots sizes to use.

How it is on crypto when it comes to leverage is totally different from that of forex even though their analysis taken before taken of trades is very similar. Trading is very risky, so trading with caution is very important for all traders, both newbie traders and professional traders should respect that.

[colinistheman]

You can follow my journey as I’ll be sharing it in this thread.

Forex trading included?

I hope you already know that forex is different from what you know with crypto market. I believe it is highly volatile and manipulated because it is under the control of government. There are some under ground news that the public is not aware and a high leverage trade will instantly give you margin call because of the effect of the news. I will try to keep tabs on your performance on the thread though.

Any financial market can be manipulated, it is part of the financial game. However, it would be a mistake to assume that the forex is more volatile and manipulated than the crypto market.
Forex is tightly regulated and has a liquidity of trillions of dollars per day. That number is many time larger than the total market capitalization of crypto. Therefore, manipulation is not as easy as in the crypto market
The foreign exchange market is less volatile, but what makes it riskier is that it uses a fairly high leverage ratio

[ColdLava40]

Aside from leverage as risk, one other thing to avoid are forex brokers that are not expert in the job, this set of people are the worst various in forex markets, once you get attache to the wrong fake low knowledge broker's, what you get is just hype on minor pair being sold to you as major currency pair to trade on and you have higher lose record, so aside from higher leverage that trigger early liquidations, fake broker's have made forex unattractive and unprofitable to most newbies in forex.

Definitely. Brokers do manipulate some trades. I've seen some of my trading friends complaining about their positions been stopped out while price didn't even get to the zone.

We have a large number of brokers offering trading pairs, but only few are genuine. Some are the reason a lot of traders are still unprofitable till now.

So to op, as a new trader In the FX market, I'll advice you get a real FX broker. Bitget is majorly known for crypto trading and I don't know how smooth they will be with FX.

[Fivestar4everMVP]

Yeah, don't trade with leverage. Ever.

Unless you are trading with a strategy with a very high Sharpe ratio (>= 2), do not ever use leverage because you will usually get liquidated.

Aside from leverage as risk, one other thing to avoid are forex brokers that are not expert in the job, this set of people are the worst various in forex markets, once you get attache to the wrong fake low knowledge broker's, what you get is just hype on minor pair being sold to you as major currency pair to trade on and you have higher lose record, so aside from higher leverage that trigger early liquidations, fake broker's have made forex unattractive and unprofitable to most newbies in forex.

Correct me if I am wrong, but I think since he will be trading  forex on Bitget exchange, he (@op) should have no business with forex brokers right?
There shouldnt be any external movements of money, every trade will be settled within the Bitget exchange platform so no need for any external body coming in.

I've once traded forex and I quite agree with you that aside high leverage being part of the risk, choosing the wrong broker could be a worser risk than the leverage thingy.
When I was trading forex, I work with InstaForex and to be honest, I don't know about any other opinion but I think this broker were one of the best in the industry, I don't know about now though since its been a long time I last traded forex.

[Rruchi man]

Yeah, don't trade with leverage. Ever.

@OP, since you want to diversify into forex from crypto, what NotATether means is that you should not use a high lot size.

If you were doing that in crypto, don't take that to forex.

My advice for you since you have been trading crypto for a while is that you should not become overconfident; that is, don't see some things in forex that you should pay attention to as unimportant because you think you know it already from crypto.

Ive been hearing about lot size but don't really know how it works . And what's the smallest lot size?

The smallest lot size is 0.01 lot on Forex. Lot size refers to the level of risk you are taking with each trade. Making trades with a huge lot size increases your chance of success, a chance to make more, but also it increases the risk, a higher chance to get liquidated faster.

There are some resources on YouTube that can help you understand better.

 Here is one: https://www.youtube.com/watch?v=GJ-Bjq1Xvks.