Made Easy Forex

Q:  I have been doing a practice acount for a while and know how to read the forex charts?I am interested in starting with a few hundred dollers and adding a little bit each check.What i don’t understand is the leverage 1:10 all the way to like 1:200,What is better why is it better does it effect the pips?What is recomended for a beginer using small amounts of money?

A:  Before you launch into the deep you might want to track your demo account trades with a Forex Utility tracker that shows your betting average. Its very easy to lose all especially if you are leveraging at 1:200. Say if you start with $300. And everytime you concede $30. 10 trades of loses and you are out. And you do not want to put a stop loss so small that will stop you out every time. The choice of currency pairs is critical. For a start you might want to start with a lower volatility pair. Like Eur/Gbp.
Take note of Trader’s Psychology as well. Adrenaline will flow. And you want to prove yourself everytime you lose. And even winnings can make your decision unobjective. I suggest take a “time off” after every trade. Till the previous trade is no longer in your psyche. And every trade is a new trade.
Money management is very critical. Traders Psychology is another leg. Both account 80% of trading. Last 20% is trading methodology like charts etc. But many people just do it the other way round.