Ready to join millions of others who are currently trading Forex for profit? Great! As you likely already know, education is critical to success and we’re here to help. Check out these quick tips before diving into the markets!
- Make sure you’re prepared before you open a trading account, or else you’ll be more likely to make beginner mistakes like risking too much and blowing your account balance.
- Develop a solid trading plan that covers topics like what you will and won’t trade, how much you’re willing to risk, how often you’ll trade, and so on.
- Practice on a demo account before you open your first live account and try taking forex quizzes to see if you’re truly ready to move on.
- Spend time researching trading psychology so that you will recognize any emotional issues that could interfere with your trades later on.
- Spend time doing research on any broker before you make a selection to ensure that you’re getting a good deal and doing business with a trustworthy company.
- Set realistic goals beforehand without focusing so much on how much money you’d like to make. Instead, set short-term and long-term goals that focus on your growth as a trader, and money will follow.
- Never stop educating yourself on topics regarding trading. Always be on the lookout for articles, videos, new strategies, and other pieces of information.
- Take breaks from trading when you need to, especially during times of stress or when the market just isn’t giving you any good opportunities.
- Never enter a trade just to do something or for the rush if evidence doesn’t support that it’s a good move.
- Know how to spot trends, even if it isn’t necessary to do so based on your trading plan.
- Make sure your broker doesn’t charge ridiculously high withdrawal fees, spreads, or commissions if you want to bring home as much of your profits as possible.
- Don’t fall victim to overtrading because it is a recipe for reckless trades that aren’t well-thought-out.
- Never risk more money than you can afford to lose and never deposit money into your trading account if you need it for groceries, bills, etc.
- Always take steps to manage your risk, like placing a stop loss and using reasonable position sizes.
- You should be confident in your trading plan, but don’t make the mistake of becoming too sure of yourself as it often causes one to make bad trading decisions.
- Experiment with new strategies and ideas on your demo account before trying them out on your live account – this way you’ll know beforehand if the strategy does or doesn’t work.
- Figure out what time of day you are most productive and try to trade during that period, whether it’s first thing in the morning or later in the afternoon.
- Always keep a trading journal to monitor your progress and to get an overview of how your strategy is or isn’t working.
- Keep your emotions in check while your trading and don’t make the mistake of revenge trading, avoiding trades because of fear and anxiety, etc.
- Know beforehand that losses are part of trading and don’t be too hard on yourself when you do lose. Instead, figure out what went wrong and learn from any mistakes you might have made.
