Before diving into the forex trading world, remember these basic forex trading tips for newbies:
» Do not venture into forex trading if making money is your end goal
Consider this: if you foremost goal is to make money, it is likely that you will invest more emotions compared to someone who only likes to make money, but doesn’t really have to. If you are desperate enough to make money because there are a lot of bills and mortgages to pay, you are likely to lose money because you will trade without thinking. When you are just starting out, you need to have other sources of income that will cover your expenses; otherwise, you will not get the results you are aiming for.
» Trading is not a competition
Different strokes for different folks! No two traders have the same trading style and strategy. Forex trading should not be a competition against other traders. For a newbie like you, it will take while until you find your own style. Once you do, should never ask how much the others make.
» Taking risks is good but do so with caution
As you begin to succeed and grow your capital, you might be tempted to take more risks. Taking risks is good but you should never ignore the “signals”. “Do not take risks just because you tasted success early on. In forex trading, you might lose all the profit you made in an instant if making money becomes an obsession” an instruction given Mr. Harris, an analyst from MTrading.eg - an Arabic Forex broker from Egypt.
» Do not be over-confident
You have to have a lot of confidence to succeed in forex trading. However, if you become over-confident after just a few successful trades, you can lose all them money you have gained in just a single trade. There has to be a balance – mistakes and success will come your way, but your attitude should stay the same.
» Experience is everything
As a trading beginner, learn from the people who have been in the industry longer than you. Constant practice gives you the experience you need. There isn’t any magic formula to become success in forex trading – let yourself learn and gain more experience.
Take it easy and keep it simple. Don’t complicate things because you want to succeed. Remember in trading, the simplest systems can yield better results.
Updated on 7. April 2020
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