The markets never sleeps. No, not quoting any book on stocks or anything here but rather just point out a fact. Did you know when a trading day in USA ends, a new trading day in Tokyo has just begun. So, you can (if its legal), make money across continents, day or night.
To understand what forex trading is lets go on a world tour. No visa or passport, just read on. If you are a french national visiting India, you need to spend in rupees and for this to happen you need to convert euros into rupee. This conversion of money is forex trading. Forex trading is the largest trading market in the world because continents swap money using forex trading. Its like translating one country’s money into another.only without using Google translate. (Ok, this was meant to be funny).
Get trained to trade
To understand trading, training is required. No matter how smart you are, some training is essential.
Forex trading is less like gambling and more like business. Majority of the people go for it because it takes less effort and hard work to market your idea. Forex trading is the answer to such people with a lot of capital and less patience. People cannot be a part of it unless they have their facts checked about how things work in the forex market. Forex trading if done smartly can give you huge profit in a couple of days.
Here are some essential things that you need to know before you start Forex trading:
Money will help you make money:
Money is the basic unit of every business as well as Forex trading. If you are not financially braced for the Forex trading, it’s going to be a hard road for you and can affect you financially and can emotionally take a toll on you.
Its all a matter of patience:
No one becomes a millionaire in a year and if this is the reason youre starting Forex trading may be you should rethink it. In forex trading there are too many things that one doesnt control that play a key role in determining the profit of your trade and if youve joined forex for a lot of money in less time, there’s a good probability that you’ll take harsh decisions in pressure. So, In order to have a serious Forex carrier one needs to be realistic and actually start working hard and should be highly disciplined.
You’ll never stop learning
The financial world has been and will always keep on changing. It’s not a constant , so it’s hard for one to say that they have mastered it. The idea is to learn from the past and analyze by keeping as many variable as one can in front of them.
Forex is the game of probability
Forex is about probability. The idea is to put yourself in a position where even if you lose, the loss will not harm you much. It is highly unlikely for one to right while trading. One can be in that position if they understand risk management and the factor of probability.
Keep your emotions apart while trading
One can automate their trading behavior by making sure that we have same response to similar situations and that emotions do not play a part while trading.
Tips/ Tricks that will help you make big money during Forex trading:
You have to have the love and passion for trading. A lot of people after a length of time get de-motivated and wait for the weekend to come. One must not get into Forex trading unless you love it.
Try to match a strategy that suits you. You cannot trade haphazardly; one must follow a strategy that suits them and get things done quick and right. Strategies are important for the longevity of your trade.
One needs to have a low- risk money management system. Even with the best trading system one cannot survive unless they have a low- risk approach to their trade
It’s really important to learn how to trade. One cannot just wake up one fine day and decide to trade. Trading keeps you in a position where you’re supposed to take instant decisions and that decisions are going to depict your profit or loss. And if you’re not trading right, money will never follow you, so it’s very important to actually learn how to trade.
Be consistent: you have to be consistent in your trading style by repeating it because that is how you’ll know the trade.
Seek mentor ship every time you call it. Talk to people who understand your work and who understand you, for your betterment. You cannot be locked up in a room and expect to be a good trader.
Don’t get fooled by lagging indicators: Don’t trust flashy robots, they generally don’t mean anything much. You need to be able to do trade by yourself and understand what’s going on in the market.
Getting all these things into the loop for your trading regimen will surely help you better Forex trading.