Trading Forex – Important Tips
Trading Forex is a very popular thing nowadays. You can tell as there are thousands of online brokers providing you with the solution to make money sitting at home by trading Forex. It is popular among people but yet few have really succeeding in a constant way while trading this market. The reason for that is most probably that today with a global population of over 7 billion, the increase of poverty and decrease in food supplies, money is not easily gained and people have to sweat in order to retrieve it. All of these attract people to try trading Forex. They are right. Forex trading provide tremendous opportunities, but you have to be realistic and remember that as any profession you need to take the time to learn the best way to do it. A medical student will not perform surgery on a real patient during his first or second year in the University. At the same token, you should not risk real money in trading Forex before you have gained sufficient knowledge. You need to gain the required experienced before you jump deep in the water and start swimming with the big fish.
This is why it is important to realize that if you are trying to make that easy money in the market while trading Forex, be sure that you have the wrong idea. Below are a few tips that can do the change for you. They are all based on my experience and many others. For me it took several years and a lot of money to learn in the hard way. I don’t want you to make the same mistakes and following these tips can save you time, and money. You can say that these are some of the oldest tips of the Forex trading book. Following these rules will spare you serious losses or at least help you in preventing them.
Tip number 1 – Inspect the market and make your own decisions. Always listen to your feelings and don’t pay attention to other people’s advice regarding which trade to take.Everything is hard before it’s easy, But when it’s easy don’t complicate it. During the learning process you would probably find the methods of analysis and trading strategies that you like and that are right for you. Once you formulate a trading plan, stick to it. People love to give advice for different reasons. They like to be heard, and show how they are trading Forex. It makes them feel good about themselves. In more cases than you think they also have a hidden interest, and trust me, most of them are not successful traders. You have to remember that in the end, you are solely responsible for your money and your Forex trading decisions. Learn what you need to learn, and then apply it. Be focused and trust yourstrading forex - forex mentor proelf.
Tip Number 2 – Make a trading plan of what you will do if. always all scenarios, including the worse case. Most s take into account traders like to ignore what they like to ignore. That is, usually the worse case scenario. But this is a crucial mistake, as when trading Forex, or any thing that involve with certain amount of risk, it’s going to happen at one point or another. And if you are not prepared you are doomed. When you have a trading plan there is no room for stress and emotional impulsive decisions. You need to know exactly what to do in each situation. You should know for example what is the maximum loss you can take. Make sure you don’t risk any more than you can afford. And then think what you would do in that situation. Even if the odds are very low. Imagine the worse possible scenario. How much will you lose? After which amount you will cut your losses and quit for the day? At which amount you will decrease your trading volume? You should think how you can minimize risks. It’s equally important to optimize your winning as well. Trading Forex in the right way is very rewarding. You should plan at which point you are going to withdrawal profits, and exactly when you can increase your transactions size (volume). It’s not hard to do so if you have a proper money management plan. Decide all of these before you start trading Forex.
Tip Number 3 – Do not be fooled by early successful results. Never act like you are God in this market as this is precisely the time you can make a decision that will erase all your hard work that you have achieved. Be confident but not arrogant when trading.
Believe me, I’ve been there. And i saw so many others that made the same mistake. If you start with the right foot great, be thankful that you can continue to experiment and learn without paying any tuition fee. But remain modest. Most chances are that you had some beginners luck. And even if you did something right, remember that’s its a long run race. You are going to face many challenges. Being arrogant will distract you from being focused and most likely will lead you to lose much more that you initially earned.
Tip Number 4 –Take your time. Many traders do not have patience. It is very important when trading Forex to take your time before making decisions. I know, there will be times that it will be so tempting to pull the trigger. A “rare opportunity” that will not come back. Forget it! Trading Forex allow you to discover endless amount of real opportunities in the market. The Forex market is not going anywhere, feel confident about it. You must be selective an only enter the positions which match all your analysis and strategy criteria. If it looks almost good, or you didn’t have time to evaluate all the aspects of the trade, skip it. And if you saw that you could have won? It’s ok, really, move on. On the long run you only have what to gain with such an approach.
Happy and successful traders are ones that can respect those tips and rules.
Are you one of them?