One of the best things about Forex is that it’s one of the few markets where even complete beginners have their chance in making it big. You probably heard of success stories that involve people with no prior experience or knowledge on stock market, but you have to keep both feet on the ground and keep in mind that these are most likely the exception to the rule.
If you still want to try your luck and make it as a Forex trader, there’s no harm in learning a few things that will help you improve your trading skills. We’ll try and focus on beginner traders this time and guide you in your first steps on the market, pointing out the things to watch out for.
Every single trader who joins Forex does it for the same reason – they want to make money. The first thing you need to learn about this market that it isn’t a magical place where you can get rich overnight and neither it’s a casino where you can win money by making impulsive bets. Like any other job, working as a Forex trader requires patience, discipline and devotion. For every trader who makes it, there are nine that don’t and keep that in mind. It’s crucial that you take baby steps instead of rushing to make it big in a short period of time. The stories of people who made risky moves and got rich are an exception to the rule, and there are thousands of people falling for the same thing and losing money that are a living proof. If you are not ready to wait for months until you see the first results, you might just quit straight away.
If you decided to make a career out of Forex trading, treat it like you would treat any other job. Create a workplace with a computer and set up the number of hours per day you’re ready to spend on trading. You will spend most time following and reading trend reports and waiting for the right trade opportunity to come along, but it will be worth the wait.
One helpful tip says never to risk more than 2% to 3% percent of your total trading account. Those traders who rush and make hasty decisions can go broke after just about a dozen bad trades, and you don’t want the same thing happening to you. We’ll say this again because it needs to be pointed out a couple of times – time can be your ally only if you’re patient. Keep your calm and never let emotions rule your decisions.
Another thing you should chose wisely is the time frame you want to work in. This depends mostly on your character. Some people are too impatient and can’t wait for hours to see a currency change, so they pick smaller time frames of 10 to 15 minutes. Others spend hours reading current trends and analyzing things carefully before making a move. The choice is all yours, just pick the time frame that you feel most comfortable with.