Entering the Forex trading market can be extremely nerve-taking for beginner traders. Regardless of the trading type you choose, the classic Forex or CFD Forex, you have to construct a clear image of the niche before becoming its active participant. In this guide by maxpay.com coaches, you will learn how to enter Forex in your best trading shape possible.
Ways to Learn
Trading Forex is business. Business requires education. The education process is infinite. The learning methods are diverse. Of course, there are many success stories of traders who relied on luck but don’t forget that they don’t write the headlines about millions of those who lost everything following the same idea.
You MUST learn to minimize risks, and here are the main ways to do it:
- Paid and free online guides – your trading platform or any other authoritative party can provide quality Forex trading courses in various formats. Make sure to pass them diligently. It’s the safest and the obligatory way to learn, but it’s totally risk-free and doesn’t let you feel the real market.
- Learn what successful traders do and copy their learning strategies – this method is great. Still, you may become too emotional and credulous about someone’s success and fail to do the cold analysis.;
- Learn from real trades and your own mistakes – this way is essential but involves real financial risks. Be modest and learn to control your emotions.
Top Beginner Mistakes to Remember
There’s no shame in making mistakes, but it’s better to learn from other traders’ common mistakes instead of repeating them. Here is what you should strictly avoid doing:
- Trading without prior research – Forex is mainly a supply-and-demand market, but world events influence it as well. A daily “intake” of news is essential regardless of your strategy.
- Neglecting the trends – it’s important to understand that any trend (Brexit, elections, conflicts) can influence supply and demand. If you don’t follow the trends, you can end up in debt.
- Dealing with unknown currencies – even if you see that a certain pair has a good history, you shouldn’t rely on it as the past trends are always expired, and the reality may not be as positive as it used to.
- Trading without short-time goals – it’s not essential to have goals, but achieving them is very good for motivation. Set small daily and weekly goals and train yourself to achieve them for good.
- Underestimating the threats of leverage – although leverage is a highly useful trading tool, it can multiply your losses by 10%-1000% and make you bankrupt. Stay away from the tool for at least the first 6-12 months of real trading practice.
Steps to a Good Start
Although you may already feel informed enough to start, let’s draw an imaginary staircase with 5 essential steps you should make to become a Forex trader and not a person who was “ripped off” by the market. Here are these steps:
- Get a Reliable Platform & Broker – there’s no way to do this business without a middleman, so it must be trustworthy. The providers must be licensed and have positive reviews amongst authoritative professionals and average customers.
- Start with your own real funds ASAP – of course, it’s nice to run demo accounts without losing a dime, but real-money trading involves fear. Loads of fear. And you can’t learn to deal with it until you invest the real funds from your wallet. Risk is your advantage – not a problem. Remember it.
- Invest only the funds that you can recover – calculate how much you can invest into Forex without affecting your and your family’s budget if the attempts don’t pay off.
- Choose your software – although most software bundles for trading are more or less similar, it’s recommended to master one program/set of apps and avoid switching to another. This will help you stay focused and automate routine actions in your brain.
- Try out new strategies as soon as you discover them – this step isn’t about jumping from one strategy to another but about the right approach to learning new strategies. If you feel like understanding a new one on paper, you should immediately run it on your main account to test it in the “real-life” environment.
Risk is Your Advantage
Choosing Forex, you admit the risk and your willingness to tame it. Learn as much as you can and test your knowledge as soon as possible to “digest” it. Technologies are on your side, so it’s high time to start.
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