Many of us dream of a life of little work and lots of money. Very few of us achieve this. Some may try some elaborate or even simple get rich quick scheme, nearly all will fail. Forex trading and ‘playing the markets’ appeal to many as a side hobby which one day may earn more than just a rainy-day fund. Spurred on by films like Wall Street and the Wolf of Wall Street, there are millions of part-time traders trying to turn a dream into a reality. So, how do you go about getting into forex trading from scratch? Well, here are some pointers:
Education, Education, Education
Knowledge is power. With the right effort, right direction and right application, study will go a long way in forex trader. There are so many strategies and charts to master, but once done, you get a feel for trading those that haven’t studied never will. An easy and often recommended route for the novice trader is to get some sort of forex instruction. Using the services of a forex mentor can help guide even the most novice of traders. Having someone there at the end of Skype, email, WhatsApp or telegram can quicken the learning process and get you trading more profitable sooner.
Focus Your Trades
There are literally hundreds of trading pairs to choose from. A daunting task for even the most experienced of traders to master all. The best practice is to focus your study and attention on just a couple of pairs. Get to know the asset. The EUR/USD is a strongly recommended entry asset. It is a relatively stable currency pairing with a wealth of information readily available. Easily the most traded of all the currency pairs, the high liquidity, and low volatility make this a good asset to start trading with.
Read the News
It is highly recommended that you stay abreast of the financial news. Set time aside, bookmark your favorite sites and make sure you know what is happening in the financial markets around the world. Assuming you have chosen your assets to trade, try to make your news time focused on those particular assets. With the wealth of information available at the touch of a button, there really are no excuses not to keep up to date with events.
Manage Your Money
Money management is important if you want to succeed in forex trading. Never invest money you cannot afford to lose and never invest more than 10% on any single one trade. Staying disciplined with your money is just as important as staying disciplined with your trading strategy. They are very much interlinked and keeping on top of your finances will help you keep on top of your trades.
Practice Makes Perfect
Use a regulated forex broker’s demo account is available to practice your strategies and hone your trading technique. Admittedly, trading with play money is never the same as trading your own real money, but practicing will not only get your strategies perfected but will also familiarize yourself with a platform, which certainly is recommended in anyone’s forex for beginners courses.
Finally, like most things in life, the more you put in the more you get out. Starting out in forex trading requires dedication. You need to be committed in both time and resources. If you can’t set aside time to do the research, study the markets and practice your strategies, then you’ll never succeed as a forex trader.
You don’t need much money to start with, but you do need discipline and dedication. Follow the above and you’ll be on the right road to forex success.