Main guidelines for beginners

Unfortunately a lot of people are pretty naive when they first start trading. They either assume that the people they are talking to are experienced and not fellow newbies or that they have the best intentions or both.

There is no newcomer who can trust himself. Because they have no confident as well trading experience. That’s why he or she always fall a embarrass situation when different trading approach come out by the seniors. Some says trade a demo account , some says not to trade a demo , trade in a micro account . newcomers have to ensure which is right or wrong by their primary trading experience.

Listen, the fault is not on one side. For the scammers/market makers of course they are to blame but in the same time the regulators were asleep for so many years regarding them.

For example cysec (I am trading with a broker regulated by them in the past year that updates me all the time) made a few moves in a positive way by banning bonuses (tools to help traders with low experience only to increase their exposure and lose their money - having a 50% bonus makes you open trades with 50% more volumes but when you are losing you lose your money and can't withdraw the bonus), more severe rules regarding introducing brokers and a few more. Now the scammers are running away from the EU region to places like Vanuatu, Belize, Seychelles and so on where the more strict regulations are not valid and are calling you with uk numbers or other eu numbers (make sure you check their licence on their website)
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But in the same time it's also the investors fault for losing money - most of them deposit and expect easy profits, either induced by the sales people or just hoping for it. They don't do a single thing to learn or just to know what they are doing in a trading account. Even if you have a hobby like collecting something or fixing cars and so on you still invest some time and resources in learning more about it, why won't you do the same when it comes to YOUR MONEY THAT YOU INVESTED IN A FIELD WHERE YOU DON'T KNOW ANYTHING ABOUT? I mean, you can learn how to build a rocket or you have all you need to become a scientist on a google search, all you need is just to do it.

Pips school + practice a demo account at any broker , I think it is more appropriate for the newcomers to keep survive in a proper way in this volatile trading place. But unfortunately they not willing to learn and ignore demo account.

Pre school level is good, but not an inevitable part of primary trading.
Demo or micro account we the traders should take and have to practice minimum for 3-6 months.

Lol, without pre school level in Pips , as a newcomer your trading condition as like a ship in an ocean without a rudder.

Have you visited Pips school recently ? there is not good condition than before which was supportive for beginners . go here and change your comment . Thank you

Hello Everyone i will make my posts like Lessons and i will start with the First Lesson and Rule which is in my opinion the most important and above anything else but most people don't give it enough attention:


Investing Wisely: Embracing Risk Management and Emotional Calm
Many investors and traders seek high-risk opportunities and end up losing, not because the investment itself was bad, but because it was made outside their personal risk profile. To be successful, the number one rule is to remain calm at all times. Achieving this calmness involves investing according to your risk tolerance. This way, even if a current investment doesn't yield the desired profit, you have backup funds for new opportunities—especially during times when others may have lost everything. This approach not only compensates for losses but also instills the confidence of a wise investor.

An Illustrative Example: Investing in Bitcoin
Scenario: You have $100,000 to invest, and you're considering buying Bitcoin. The current price is at a peak of $65,000. Everyone around you is saying that Bitcoin will soar to $100,000, $200,000, or even higher. How should you act?
The Secret is Simple: Align with Your Risk Comfort Zone
Identify the point where you are comfortable with any price movement of Bitcoin. To achieve this, ask yourself the following questions:
If I Invest the Entire $100,000 Now at $65,000 per Bitcoin, How Would I Feel If:

1. a) Bitcoin Rises to $100,000?
   Feeling: You would be happy—this is a good feeling.
2. b) Bitcoin Falls to $40,000 or Lower?
   Feeling: You would be stressed because all your investment funds are tied up. You might find yourself anxiously hoping for the price to rise—a bad feeling.

How Can I Invest to Avoid Situation b)?
Consider different options based on your risk profile and personality:
Option: Invest part of the amount—For example, $20,000
How would you feel if:

1. a) Bitcoin Rises to $100,000?
   Feeling: You would be happy—this is a good feeling. If Bitcoin continues to rise, you can hold this position and look for other investment opportunities since you still have $80,000 on the side.
2. b) Bitcoin Falls to $40,000 or Lower?
   Feeling: Optimistic—you can now purchase Bitcoin at a better price than others. You could invest another $20,000, lowering your average purchase price to $47,500 per Bitcoin.
3. c) Bitcoin Falls to $20,000 Amid Market Panic?
   Situation: Many people are stressed and selling their Bitcoin at low prices due to poor risk decisions.
   Your Action: Invest another $40,000, bringing your average purchase price down to $33,500 per Bitcoin.
   Feeling: Smart and confident—you've accumulated more Bitcoin at lower prices while others are incurring losses. You still have $20,000 available if the price drops further.
4. d) Bitcoin Falls to $10,000 and Negative News Circulates?
   Your Action: Use your remaining $20,000 to buy more Bitcoin.
   Feeling: Empowered—you've executed your investment plan, acquiring Bitcoin at significantly lower prices.

Reflecting on Your Investment Strategy
When Bitcoin Rises Back to $65,000:
Feeling: Great—you feel smarter and wealthier than before. You may choose to secure some profits, ensuring peace of mind for future fluctuations.
When Bitcoin Rises to $100,000:
Feeling: Thrilled—you benefit from the rising price and still have funds to explore other opportunities.
If Bitcoin Falls to $0 and Never Recovers:
Feeling: Disappointed but wise—you didn't overextend yourself and have gained valuable experience in risk management.
What Sets You Apart from Others?
Experience and Learning:
a) You've learned that no investment is guaranteed.
b) You've gained valuable insights into risk management and emotional control.
Emotional Intelligence:
a) You maintained composure throughout the investment process.
b) This experience prepares you for future opportunities, making you a wiser investor.
Key Takeaways for Successful Investing
Invest Within Your Risk Profile:

1. Only invest amounts you're comfortable risking.
2. Avoid overexposure to any single investment.

Diversify Your Investments:

1. Spread your investments over time and price levels.
2. Keep funds in reserve to capitalize on market downturns.

Stay Emotionally Balanced:

1. Avoid decisions based on panic or hype.
2. Maintain a long-term perspective.

Learn from Every Outcome:

1. View successes and failures as valuable lessons.
2. Continuous learning enhances future investment decisions.

Conclusion
By investing according to your risk tolerance and maintaining emotional equilibrium, you position yourself among the top investors who are prepared for any market situation. When you win, you appreciate that your investment decision was sound. When you lose, you understand that you didn't overextend yourself, gaining experience that will benefit future investments.
Remember: The goal is to feel confident and secure in your investment choices, regardless of market fluctuations. This approach enhances your potential for financial success and contributes to a more fulfilling, less stressful investment experience.

Hi, I would like to learn how to identify and use support and resistance properly. Can anyone help me, please?