So, you want to trade forex?
The path you wish to travel is fraught with treacherous perils and scary pitfalls. Fortunately, at the end of the rainbow there is, very literally, a pot of gold so hang in there and take this advice from an older trader.
Firstly, Learn the basics. You have no idea how valuable this bit of advice is. You won’t believe how many new traders immediately fund their forex accounts and buy/sell blindly expecting to make millions in a second. You go to study surgery for 4 years (or more) before you can operate on a patient. What makes you think you can, with two or three days worth of information, waltz into the forex market and walk out with millions?
Learn the basics. Find out what a pip is and investigate how leverage affects your profits or losses. Determine the brokers with the best spreads and learn from more experienced traders than yourself. Fortunately, you have this website for all that so if you promise to keep visiting the site, I promise to keep the information coming.
Secondly, PICK ONE TRADING STRATEGY AND MASTER IT. Colossal losses are made by traders who jump from one trading strategy to another looking for the holy grail of forex. THERE IS NO HOLY GRAIL! Take time to study different trading strategies, purchase a trading robot or trading system (Like the Alpha and Omega System HERE) and observe its behavior, trade on price, trade on momentum, trade support and resistance zones then when you finally find a sweet system that resonates with your personality, stick with it and master it. You will thank me later.
Thirdly, contrary to popular belief, the forex market is not driven by price or by news or by speculation. It is driven by Psychology. Most times you look at a chart that should be rising but you notice that it is stagnant. Why? Because thousands if not millions of traders are all watching the same chart expecting the same before they splash their dollars. A million pairs of eyes all watching the chart instead of trading thus a graph that should shoot up is frozen.
With practice you will learn to read the psychology of the market and you will be better placed to both anticipate and predict swings in the charts.
Last, and not least, trading is NOT A HOBBY! Do not treat it as such. Hobbies COST money, we are here to MAKE money.
If you are a seasoned trader and you have any more gems of wisdom to pass on to our younglings, just drop them in the comment section below and I am sure the new traders will greatly appreciate.
I wish you happy and prosperous trading.