The problem is not the broker, but the common mistakes that beginners in forex make. Says broker Squire's Finance Limited

The success of a player depends on many factors, but newcomers often trade at a loss due to lack of cognizance and experience. They make spontaneous decisions, do not use tools and make a number of other mistakes, which will be discussed in this article, written with the support of experts from the broker Squire's Finance Limited.

Also, Forex experts Squire's Finance Limited will give recommendations on developing an adequate strategy for beginners.

Who is a trader and what does he do?

Squire's Finance Limited Forex consultants say there are different kinds of traders. A trader is attempt to earn money on the trading rate using different methods and tools. Transactions can be made on his behalf or on behalf of the organization (institutional traders). To enter the stock market you need a broker. It could be Forex Squire's Finance Limited. It offers understandable commissions. Squire's Finance Limited is not a scam and has all licenses. It has several types of accounts, a good attitude towards customers, fixed payments.

An important skill for a player is the ability to manage risk. Psychological control is also considered no less important, because due to emotional reactions to sudden price changes, wrong decisions can be made.

Traders are not limited in their strategies, but in order to keep abreast of the latest market trends, they must constantly learn, update their knowledge. Forex Squire's Finance Limited has good educational materials that are provided free of charge. All information is presented in simple, understandable language. Access to the educational section is available around the clock.

What types of traders are there? Notifies broker Squire's Finance Limited

Players in the market may differ in their behavior and trading psychology. In the first case, we can distinguish:

  • bears. They sell assets, expecting to buy them back, but at a lower price. The difference is a profit. Such behavior is pronounced in a downtrend;

  • bulls. Their earnings are based on the increase in the exchange rate, which they contribute to. I buy assets whose value will presumably increase in order to resell them later on speculatively;

  • sheep. These players act spontaneously, without thinking through strategies. Their trades are made on emotion;

  • pigs. Insolent, they do not hesitate, they act quickly. Gradually take risks, invesments against the rules;

  • chickens. Cautious, fearful traders. They often lose profits because of their indecisiveness;

  • whales. Consistent players who perceive trading as a business. Calm, judicious, cold-blooded. All decisions are balanced, risks are respected.

According to the psychology of trading traders are:

  • Intelligent. Before you start trading, you study everything thoroughly, and the tactics are built with fundamental/technical analysis in mind;

  • instinctive. As in the first case, everything is based on emotion, but here, charts can also be taken into account.

Types of Forex trading are diverse. Everyone chooses a suitable style and type of behavior.

Squire's Finance Limited broker about beginner's mistakes

Due to beginners and lack of knowledge, novice traders do not always make the rational decisions, which leads to a number of negative consequences. Here are the mistakes they most often make:

  • No plan or strategy. Relying on intuition and rumors, beginners trade at a loss;

  • Incorrect risk management. Players forget about stop-losses, or set wrong parameters. This can cause big losses, for example if there is no control over emotions;

  • The importance of fundamental analysis is not taken into account. Beginners choose technical, although news and events have a significant impact on the price of the currency, so it is important to follow them;

  • Frequent switching of strategies. Beginners may try several strategies without giving them sufficiently time to test their effectiveness. This can lead to bad results;

  • Insufficient level of training. Some players start trading Forex without having been trained and without receipt practical experience;

  • Lack of discipline. Traders make mistakes by ignoring trading rules, not following their strategy, which can also cause losses;

  • overtrading. Beginners tend to trade too often and too much, hoping thereby to make instant profits. This can lead to rapid fatigue, oversaturation, and poor results;

  • do not take liquidity into account. Many novice traders try to work with currencies that have low liquidity, which also causes difficulties in closing positions;

  • Incorrect choice of a broker. Players without knowledge and experience can open an account with unfair agents who offer supposedly favorable conditions. In fact, the company turns out to be unreliable and does not have the necessary documents confirming the legality of its activities. Squire's Finance Limited broker is not a fraud. This is a licensed service with regular payments, fixed commissions, and 24/7 support. Its activities are monitored by the regulator, plus it is audited monthly. Several kinds of accounts, reliable payment systems, convenient withdrawal methods, as well as free training.

Also, using too much possibles is a common problem and mistake of beginners. They also ignore the psychology of trading, succumbing to emotions.

How can beginners improve their skills? Advice from Squire's Finance Limited

You study from your mistakes. In order to achieve certain successes in trading you need to:

  • to undergo training on a regular basis. There are various courses, webinars, seminars, books, articles, and even player communities where you can get valuable advice from more experienced traders;

  • Analyze mistakes. The trader should learn lessons to avoid making similar ones in the future. Squire's Finance Limitedbroker recommends keeping a trading journal. In it, you can record transactions and the reasons that led to successes or failures;

  • Develop a strategy. It should be based on risk management and market research;

  • practice on demo accounts. This will allow you to improve your trading skills without the slightest risk to your personal funds.

It is also necessary to follow the news and events touching exchange rates. In this way it will be possible to make more rational decisions, trading on Forex. Experts Squire's Finance Limited remind that scammers are on the alert, so be careful

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