Jumping into the Forex market without proper training, is like jumping into a pool when you have never learned how to swim. You could get lucky and be a natural born swimmer and take to it like it’s nothing. On the flipside, you could jump in and sink straight to the bottom. Learn these tips for navigating the market and improving your odds of success.
To be successful in forex trading, don’t fight against the market, but instead recognize your own failures and work to completely eliminate or at the very least accommodate them. Most importantly, do not fall into the trap of believing that you somehow know all the secrets of forex marketing.
Consider getting email
Consider getting email or even mobile alerts from your forex trading account. These alerts can let you know when a potentially profitable trade is occurring. Some forex brokers even have applications that allow you to trade through your forex account, using your phone. This ensures that you never miss an opportunity to profit.
Keep a detailed forex trading journal
Include the analysis that led you to take a specific position, but also include things like your emotions and actions at the time. This way you can look back and determine what behaviors make you a successful trader and what behaviors could be costing you money.
If you are an experienced stock trader looking to start trading in forex markets, learn the differences. For example, it is often good strategy to “buy and hold” stocks but the opposite is true with forex trading. Avoid losing money by using stock trading practices by learning about how forex is different than the stock market.
Make sure that you familiarize yourself with your forex broker’s trading practices to make sure that he is not doing things that might be considered unscrupulous. You can make a lot of profits while working with the correct broker, but choosing the wrong one can make you lose a lot.
Know your forex markets. The first market to open is the Australasia area, then Europe and finally, North America. Quite often a market’s trading time will overlap with another one, making this the most active trading period. During the trading week, there is always a market open, where you will be able to make a currency trade.
Learning about the market before you start is key to being able to swim instead of sink. Just like you would not risk your life trying to swim without instruction, you don’t risk your money without learning the best ways to navigate Forex trading. Taking the time to get a handle on the do’s and don’ts, will pay off during your first swim in the Forex waters.