Trading in Forex-Why and How to Start?
Did you know that the forex market trades more than $5.3 trillion a day across the globe?
It’s safe then to say that forex is the world’s most traded market. One of the main reasons is the fact that forex markets are open 24 hours a day from Sunday evening to Friday night. Forex trading follows the clock, opening on Monday morning in Wellington, New Zealand to the Asian markets in Singapore and Tokyo before moving to London and finally to New York where it closes on Friday evening.
If you’d like to start trading in forex, then there are a few things that you need to be aware of.
#1-Set Realistic Goals
Just because someone you know has made it big in a few years of trading in forex doesn’t mean that you will too. If you think it’s a way of earning money quickly and becoming a millionaire in a few years, then you’re extremely wrong. There are a lot factors that will not be in your control. If you start forex trading under the false pretense of making a few easy buck, then you’re more prone to making mistakes.
If you’re serious about making money in Forex, then you need to understand that it’s exactly like any other job. It requires patience, hard work and a lot of discipline.
#2-Forex Trading is About the Journey and Not the Destination
If you want to be profitable in forex trading, then you need to be more focused on the journey than the prize that you may receive at the end. Since it’s a game of speculation, you need to be well-versed about all the terms and what it takes to make the right decisions.
There will be losses and wins, but you need to stay focused each time instead of getting irritated when you lose and getting spontaneous when you win. You will need to make calculated decisions each time you’d like to trade in forex.
#3-It’s a Learning Curve!
Trading in forex is a continuous learning process. There’s no limit to how much you can learn. Since the financial world changes constantly, so do the rules. Hence, you need to keep updating yourself about the trade. It’s very important that you are open-minded towards forex trading.
#4-Don’t Make Forex Trading Harder for Yourself
Back in the day, traders had to rely on manual trading. However, that’s rather outdated now as plenty of trading tools are available. So, instead of trading manually, use these tools. It’ll just make your life simpler and your trading journey easier. Use these tools to apply to your trading strategy and you’ll realise forex doesn’t have to be hard at all.
#5-You Need Money to Make Money
This is a golden rule of trading that you need to memorise!
Most traders won’t let this secret out. But you need to know that if you’ll be trading in forex, you’ll lose money as well. So, only if you’ve the financial means and are ready to lose some money, consider forex trading. Otherwise, if you lose the money meant for something else, you’ll be constantly struggling to keep up.
#6-Don’t be Afraid of Failure
As mentioned earlier, forex trading is all about making and losing money. There will be times when you’ll not make any money, and maybe just lose more money and there will be times when you’re on a winning spree. You need to remember that when you lose money, it’s all a part of trading in forex. So, losing some money shouldn’t depress you and make you feel dejected. You shouldn’t be afraid while trading in forex.
These are just some of the things that you need to remember. As you trade more and more, you’ll keep learning!