Every new trader begins their journey with the same goal: to find the most productive way to trade the market without taking a financial hit along the way. Fortunately, trading doesn’t come down to luck or chance like gambling does. If you’re determined and willing to work hard, you can improve your chances of success drastically.
You shouldn’t make the mistake of focusing solely on those dollar signs or chasing the holy grail, but you should know that there are secrets that will set you up for success and ensure that you don’t make one of the countless mistakes we often see with beginners. If you learn these secrets, you can lower your risk so that you don’t lose money, while increasing your profits so that you wind up with more money in your pockets.
Starting off, many traders put their faith into signal providers, which tell them when to enter or exit the market through alerts. Signal providers often rely on technical analysis done by forex indicators to provide these alerts; however, different signal providers use different resources. If you’re thinking of going this route, you should know that no signal provider can offer results that are guaranteed to be 100% reliable, so don’t fall for these sorts of claims. Instead, you want to find a provider with a good track record of proven results.
Other important qualities for signal providers include accuracy and consistency. With so many scammers out there and new ones popping up each day, a provider that has been on the forex market for a few years is safer than going with a newly released option. The longer the provider has been trading, the greater the chance is that they provide accurate signals. Since your hard-earned money is on the line, it’s better to be safe than sorry when it comes to choosing a signal provider.
While some forex basics are shared often online, professional traders keep other important tips to themselves and don’t choose to share them with beginners. The following are some of the market’s deepest secrets, which most professionals won’t tell you:
- Don’t trade without a purpose: You need to be truly invested in trading for things to work in your favor. We don’t just enter trades for the sake of doing so: we make informed decisions that we feel confident about. Don’t trade if you aren’t feeling it or if there isn’t sufficient evidence to do so, and never risk money that you aren’t willing to lose. We assure you; your broker’s customer support team is not going to refund you if you message them asking for a refund after losing all your money from trading.
- Don’t rush: Deciding to become a trader can be exciting, but one of the first mistakes many newbies make is opening a trading account before they’re truly ready. Instead, you should start slow by learning everything you need to know online and consider investing in online courses or training opportunities if you can afford to do so. Then, you need to practice on a demo account to see how much you’ve learned before opening a live account. Trust us, the opportunity to open a trading account isn’t going anywhere, so don’t risk your money by opening an account too early.
- Keep a trading journal: Please don’t skip this step! A trading journal is crucial if you want to be able to keep up with your success and it can be referenced anytime you have an issue. Your journal serves as a handy guide that shows you what does and doesn’t work about your trading plan and it can also point out things that you might overlook, such as emotions interfering with your trading results. Many traders are just too lazy to keep a detailed log of their trades, while others start with one and abandon it after a few weeks. Some traders never even start a journal because they don’t realize how helpful it can be, so don’t make this rookie mistake.
- Beware anything that sounds too good to be true: The forex market is unpredictable, meaning that there isn’t a broker, indicator, robot, or anything else that can 100% guarantee to win every time. If a broker offers a promotion on a golden platter where there seems to be nothing in it for them, chances are, you’ll find some interesting terms and conditions hiding behind it. The point is that there are good brokers and services out there, but you can’t believe in magic answers. Always do research and beware of flashy ads or promises. Instead, look for real results, proof, and reviews from other traders.
- Patience is key: Some beginners rush into trading with high strung hopes and dreams, and there’s nothing wrong with this, but you need to know that success takes time. It doesn’t come overnight. Trading might be more difficult than you think and it may take longer to reach your goals than you initially planned, but this isn’t a reason to give up. Think about what it takes to become a doctor or a lawyer, or to accomplish any other big goal in life. You can become a trader in a heartbeat, but you have to earn your way to the top, just like in any of life’s other big ventures. So, keep calm and know that you will meet your goals, as long as you don’t give up on your trading dreams.
The Bottom Line
There isn’t a magic answer to making it as a forex trader, so you shouldn’t waste your time believing in false promises that come from scammers. Instead, start with a good education, know what to watch out for, trade with a purpose, and don’t give up if things seem more difficult than you expected. If trading were an effortless way to get rich, there would be a lot more traders in the world. Fortunately, you now know some of the best insider secrets that can help you get off to the best start as a newbie forex trader.