7 Vital Things to Remember When Starting Your Forex Campaign
Since Forex trading is one of the most risky enterprises out there, you may work our rational and conservative approach towards currency markets. Below we gathered some recommendations for beginners.
Put main focus of your Forex campaign to preservation of your capital, rather than becoming rich as soon as possible.
Be Moderate in Your Plans and Trading Activity
Markets will stay on their place for tomorrow, the next week and the next years. Don’t worry that you may miss the chance of a lifetime when you test and practice demo trading.
You will always find the chance and lose nothing if contribute your time to education.
Find Reasons for Your Trade
When finally you set yourself to trading, don’t do it just because you feel you must do it, you’re bored or spontaneously. Risk with you money only if you see the facts proving there is a favorable chance to trade and you prepare your trading plan.
Besides, do not trade “for revenge”. With a significant loss or number of losses you can be tempted to trade more often and with a bigger lot to make up for loss in the shortest time. There is no saying that this determination leads to damage.
Treat Leverage Just as an Extra Option
No market law says that you need to conduct margin trading on each market. The higher leverage you take the higher risk you face.
This instrument helps only if you know how to use it. To get to know it, you need time!
Be Careful With an Early Success
Number of lucky trades in the very start of your carrier is rather probable. But it is just one of market’s tricks: in the beginning we reap and become sure that we are excellent players.
People say that beginners are lucky and it is true for Forex as well as for all other things. After a lucky streak traders may raise volume without an urgent need just on the eve of a big loss. Try to stay calm when face loss either gain.
Work and Think on Your Own
We are taught to think that each problem has its ready-made solution and each need is satisfied with a relevant product, medicine or service.
Though sometimes we want to rely somebody’s trading ideas, research, system, recommendation very much, the progress only happens when we analyze and make decisions on our own. Of course, experience of other people must be taken into account and a lot of ready ideas constitute our trading plan. But there is no short way.
Confidence in your trading idea can only be reached when you conduct entire work on your own and realize its concept completely.
If Something Seems Too Good to Be True, Probably, So It Is
Whether it be trading system, “unfailing” information or indicator – all that promises fine returns with 0 risks – must be avoided by you.
There is not trading system which would bring profit for 95% of time, allows earning enormous money for month and does not entail risk upon that.
Be skeptical and find the proof for each trading idea including those you invent!
Conduct Research and Test, Test, Test
Work with the trading ideas which you can fairly define, deeply research and fully test.
Vague ideas – like “buy when market is oversold or sell when you are at good profit” – provide uncertain results. Observations must be transformed into specific rules which you can check on last trading data.
For example, what do they mean under “oversold”? It can mean everything. An example of fair rules is: when market reaches lower points and lower closes within 5 days in succession. Will this definition be a good buying signal or not – the question which you must answer with the help of research and testing.
To work out an efficient approach towards your research and test, follow the below three rules:
Keep records and study results of your trades regularly
The most part of traders with a good performance agree that studying on your past experience is a must.
Trading on financial markets is a profession and is not as easy as it may seem. The time is needed to acquire any discipline or profession. Will you manage to become a good musician, doctor or engineer just for one year?
Besides, there is not “salary” paid. You risk to lose all money rather than to earn at any moment.
Save a sufficient capital
Insufficient capital destructs the most part of new enterprises and trading on financial markets is not an exception. This money challenges each second item on this list.
Trade using even more conservative capital than your scheduled minimum is. Then gradually increase your volumes. To get started, visit: freshforex.com