If you are a newbie to all of this, “Forex” refers to Foreign Exchange. When it comes to beginners, learning how to succeed in the world of trade can be extremely complicated. In the world we live in today, the most shared dream amongst us all is to somehow become filthy rich without even doing anything! The Forex trading game seems rather unreal for those who know little; as they say, if you don’t know the game, you cant play and win at the same time.
Not to worry though, you’re safe as long as you cover each section from this article. Even if you’ve already experienced the journey to trading and accomplished it the first time, going through the basics won’t hurt. But be sure to double check each point!
1. Pick the Right Broker
The main struggle is between defining which broker is right for you and which might cause trouble for you in the long run. Take your time to go through reviews and discuss with the help of social media with your close ones.
It is important you know the kind of personality your broker withholds; whether they can be trusted with your personal data or not. Make sure you don’t get stuck with a fake broker that will most probably only come in your way. You must be sure your broker is authorized with a license.
2. Get Your Strategic Planning Done
It is essential for one to plan out their actions thoroughly enough to avoid any potential mistakes and bypass the stage where there must be a lengthy procedure to rectify the situation. You need to know what your goal is in order to take certain necessary measures to achieve it successfully. Therefore, you must do your research prior to any step and then execute it cautiously.
3. Alter Your Thinking Pattern
If at this point you are still thinking with a typical mind frame that you want it all in one go, then it is most likely that you will not succeed. The key is to adjust to a rather more practical mind frame.
This whole procedure might seem lengthy but it is in reality a guide to the safer bet. On a whole it includes a heavy amount of learning; which in general means you need to work your way from the bottom to the top. Obviously, this means starting with something small and keep in your mind that slow and steady always wins the race.
4. Keep Yourself Together
Regardless of what comes your way it is absolutely important you do not let your feelings affect your decisions or interfere in your actions whatsoever.
As they say, “when the going gets tough, the tough gets going”. This is a point that must sink in your heart, mind, and even soul up to some extent; only then will you be able to make decisions that will benefit you much more than any decisions made out of an emotional reaction.
5. Don’t Stress It
As obvious as it sounds, you might want to sit back for this one. This should not under any circumstance be confused with the previous point. Yes, they both are equally risky. However, decisions made while stressing out is worse than an emotional decision at this point.
It definitely leads to irrational decisions; exactly what you need to avoid while trading since you have your money at stake. The more mistakes, the more loss you face.
The only way to check this off your list is by sitting down, take a deep breath and think about the sources of stress and eliminate them one by one. Eventually you will be carefree and more open to a more wise choice of decisions.
6. Practice Makes You Perfect
At this point you must understand you will not succeed in the first try. It is possible after a lot of research you minimize 70 per cent of the possible damage that could have struck by you, but it is very rare for one to achieve the idealistic 100 per cent goal at the first time.
However, they do say “If at first you don’t succeed, try harder again”. So basically the key point here is to not to give up and instead keep practicing until you reach a satisfactory level of perfection at Forex trading.
7. Beware, There Are No Guarantees
Just as every other bet is without a guarantee, Forex trading is no different. Consider it as a game of luck. Once you have entered the magical world of trading you must be mentally prepared or the possible amount of failure you could face. Always be realistic and play it smart to keep your money safe.
8. Analyze Each Move First
The learning never ends in this part of the world. You must keep the learning on-going if you wish to be able to get somewhere with your trading.
It is essential for you to keep an eye out on the Forex market. You must keep all of these tips mentioned in your mind at all times for your own good. After this, it is obvious you need to analyze and process the news and trends around you to be able to get somewhere even remotely close to your goal. Do not neglect your basics and keep the studying in motion always.
8. Notice the Chart Patterns
It is impossible for all your trading to be restricted to simply one market. You will be shifting from one to the other all the time; which means it is important you need to be quick on understanding the info for each trade.
Charts provide you with saturated numerical data on the type of info you require to take the next step. Thus making a simple glance at the charts will keep you informed on the situation.
9. Avoid Overtrading
Being eager in this game will not benefit you in any way possible. In terms of success, the more you trade, the more danger you are placing yourself in.
10. Stop When the Time is Still Right
You need to know when to stop. Do not be greedy just to achieve more profits. It is important for you to set the bar yourself. The maximum amount of loss and desired profit must be determined in order for you to avoid taking unnecessary risks that might cause more damage to your success rate than you ever thought was possible.
11. Review Your Previous Trades
In order to keep your learning in a healthy motion at a steady pace, you must go through your previous trades every now and then to determine where you went wrong and how to avoid unnecessary repetition of mistakes during previous trades.
12. Don’t be Afraid to Experiment
Lastly, an essential tip is to not fear taking a few risks only or the sake of safe learning. Which means you should be able to experiment here and there with some tricks of your own in order to be able to come up with a trading pattern suitable for your taste.