Forex trading is not a walk in the park. Make the right moves, and you will be smiling your way to the bank. But the wrong decisions could also take you to the verge of bankruptcy.
You should always seek expert advice from FX trading gurus such as Artur Hochberg soarfx.com. Proper guidance can help you avoid disasters and maximize your potential.
Read books on foreign exchange trading. Learn from the successes and mistakes of others. But this does not mean you should copy how they operate. A method that works for them does not mean that it will work for you. Instead, use this information to come up with a strategy that works for you.
To start you off, here are four things you should keep in mind when trading.
1) Stick to the Number One Artur Hochberg Rule; Understand the Market
You cannot successfully trade if you do not understand the market. Do not be in a rush to make money; you could end up losing more than you hoped to make. Observe and assess currency pairs before making your move. Understand how the value fluctuates in various seasons.
Take advantage of a practice account to test your skills. It will have real market conditions, and you can see how you fare without risking your money. With your skills sharpened, you can get into the real market.
If you are seeking a fixed income, you are better off taking a nine-to-five job. Forex trading is about dealing with probabilities. You could win or lose.
2) Have a Plan
Forex trading is no game, says Artur Hochberg. You need to understand your level of risk tolerance. Lay down your goals, and your mode of operation to achieve these goals.
For instance, you have a higher chance of making some money if you focus on single, low-risk pairs at the beginning of your trading career. Accumulate small profits that eventually build up, rather than going for higher returns, which carry high risk.
Understand that Forex is not a sure bet. Do not invest so much money that your losses lead to near bankruptcy. Make small steps. Learn from your mistakes and take notes. And most of all, have a deep understanding of probability and risk management.
3) Stay Consistent
You need to stay rational in your way of thinking. Do not let the excitement of wins rush you into making hasty decisions or taking uncalculated risks. Have a clear methodology for making decisions concerning your trades. And always stick to it. To be on the safe side as a beginner, adhere to market trends.
If you are going to be using charts, applying technical analysis, or assessing the economic conditions of the country involved, be consistent. However, your methodology should also evolve as you gain more experience and as the market changes.
Forex trading is not a get rich quick scheme. You need to put in the work, study the market, and give yourself time to learn. Artur Hochberg Malta advises that you should develop a consistent methodology of deciding on your trades. Follow these tips, and you are sure of making some profits from your trades.