Starting to do something new is always difficult. Especially if this includes the risk of losing money, your money. Forex is a transparent, highly liquid and highly active market that is accessible to most people. Want to participate?
However, in order to make a profit and avoid losing all invested funds in the first month of trading, you should get acquainted with several tips.
What to do
Before you start trading, develop a plan. Just as you do in most life situations. Planning first, then action.
Try to understand yourself and then the markets. Knowing the trends and finding the starting points will not help your success if you don’t know what type of investor you are, what risks you are willing to take and what you are looking for.
Never stop learning. No special knowledge is required to open an account. However, they will definitely be needed to keep the account empty. Knowledge is a must in order to stay afloat. No, no one said anything about tuition. Currently, a large amount of information can be obtained from the Internet for free.
Learning from a book is good. Learning through practice is even better. However, in the world of trading, you risk losing money. To avoid this, open a demo account and start learning the basics from day one without investing money or nerves. Demo accounts provide tangible assistance in learning.
Make a list of your most successful techniques and resources and improve it over time. Choose your favorite technical indicators and polish them for better results.
What you shouldn’t do
To think that trading is an easy way to make money. This is fundamentally wrong. Despite the fact that you will find thousands of sources on the Internet who will claim that everything is simple on Forex – this is not so. You may be lucky and make a profit on the first day without any knowledge or practice. Or maybe you will lose everything the next day.
Greatly upset about the loss. Here everyone faced it. We all lost money, but still here and tell you about it. It is important to remember about risk management. Reduce risks to 1% of your portfolio for one position.
Make dense graphics. The fact is that a few lines from different sources are more than enough to understand where the market is going and where it is worth investing. Believe us, the more lines on the graph you draw, the less effective it becomes.
Try a new system every week. Give me some time to understand exactly whether your system is working or not. If you make changes to your system / strategy every week, then make sure that you have a permanent job, you will need it soon.
Being too emotional. In this industry, emotions are worth keeping under control. And we all know how difficult it can be, but there is no other way. Emotions can and will certainly increase the risks. Stay away from fear, sadness and anger. Use rational thinking.