22 Feb 2017
Forex Trading Tips - Have You Got the Basics Right?
Forex trading is an exciting and interesting pastime, which if conducted correctly can be a lucrative one as well. Of course if you disregard convention and ignore perceived wisdom, then it could prove to be a costly venture just as easily. But as luck would have it there is plenty of advice for new traders to follow, which is aimed at keeping them out of harm's way as much as possible. I say that because you will undoubtedly lose money at some point whilst trading Forex. In fact if the truth be told, it will probably be beneficial in the long run for you to do so. Because trading is about learning from your experiences. One of the things that traders need to experience is losing money. Trading is not a get rich quick scheme let's be clear about that. Rather it is a commitment or a discipline if you prefer. Just like going to the gym everyday or training for the marathon or a triathlon. Don't get me wrong I am not suggesting that you need run 26 miles or swim 1.5 kilometres every day though a healthy body and a healthy mind will help. But you will need to be dedicated and to “ put in” the hours if you want to succeed in Forex Trading.
Set yourself realistic goalsThe first tip for any new traders to follow would be for them to set themselves realistic goals. By that I mean to write down what they want to achieve through trading and how they intend to get there. To begin with this might be a very one sided list with most of the information on the goals side and very little data on how to reach them. But you will be able to populate that side of the list as you grow as a trader. Meanwhile here are a few pointers to help you with your list.
- Ask yourself how much time per week can you allocate to trading ? And at what times of the day you will trade ?
- How much capital can you afford to commit to trading (remember this is risk capital that you can afford to lose - not funds you need to pay your bills) ?
- What return on your investment / income are you looking to achieve? If you wrote a 7 figure number down here then you probably need to think again.
- From where and when will you trade ? You will need fast reliable internet connectivity and be able to concentrate undisturbed when you are trading. Don't forget you could be at your workstation for hours at a time so you need to get this set up correctly.
- What's your knowledge level about trading and the markets ?
- Rank yourself on a scale of 1 to 10. Where 1 is a complete beginner and 10 a pro trader. Be honest with yourself here, if you are less than a “7” you will need to think about getting some training and education. Remember that every day can be a learning curve in the markets even for pro traders.