When you start Forex trading, it is easy to get carried away with it all. There’s that sense of excitement, the anticipation of big profits, maybe even something extra-special. And this is a big part of the thrill of trading. But it can also be your downfall. Here are five tips to mix with your enthusiasm and excitement to increase the chances of your success.
Plan your goals and stick to your plan
Creating a timeframe and a strategy for your trading career is crucial to succeeding. You need to be clear on what amounts to success for you and what counts as a failure. You also want to outline your trial and error timeframe – how long will you test before you start live trading? You should also consider your end goals – is this going to be a primary source of income or a supplement to other income streams?
Once you have a plan, it is important that you stick to it. Traders who fail are most often those that do not have a plan or ignore it.
Start small and increase the size of your account organically
Part of your plan should involve the amount of capital that you are going to start trading with. This should be a relatively small amount as you begin your trading journey. And it is imperative that you grow the size of your account organically – not by depositing more capital. This will lead to disaster because you will quickly find you have nothing left to trade with. So keep it manageable, keep your trades small and start building up naturally.
Just focus on one currency pair to start with
Don’t be like a kid in a sweet shop, running around and trying everything. Start off with one currency pair and focus your attention on it. The chaotic nature of the markets means that currency trading is complicated and there are many different factors that influence it. You want to learn the most you can about one pair before starting with others.
Keep a record of your successes and failures
Keeping records of what you do, both successes and failures is another valuable tip. That way you can see what you want to recreate and what didn’t work so well. It also helps you to develop that strategy and as well as having solid practices in place for when you are ready to increase your trading amounts or try new currency pairs. There are lots of different ways to do this from a diary to a journal or even an online version. You could also just use a simple spreadsheet that details all of the day’s trades for future reference.
Choose a broker carefully
Every financial industry has its fake or unreliable elements that take people’s money or just don’t do what they promise. While regulation has helped to combat this problem, it is still imperative to study the broker you plan to use and make sure they are a reputable one. Look at customer reviews, feedback, and stats on the usage of the site.
Also, consider more than just the basics. For example, how easy is the software to use? Do you need to download it, or can you just trade over the internet, saving computer power? Does the platform have reliable customer services? Finally, is there a decent amount of educational resources available to help you learn? When you Trade at Weiss Finance you will find that you can get all the education you need alongside the other essential elements of a reliable platform because we want to provide the best secure environment for Forex traders.