5 Steps to Successfully Start Your Forex Trading Career: Tips for Newbie’s
Arslan Butt • 3 min read
Morning, friends and fans. I hope you are enjoying a relaxing sunny morning. The market is closed, no economic events coming up and the price action won’t happen. Speaking of Forex trading, it’s convenient, appealing, educational and does offer traders a lot of opportunities. Despite this, most of the traders fail to score good results in the forex market. In fact, a high percentage of traders are losing money.
In this article, I’m thinking of sharing 5 crucial elements to consider if you are looking to start forex trading. It’s written out of personal experience and knowledge and will give you some idea of how to get started trading the forex market with the goal of consistent profits.
1- Solid Base of Knowledge
During the course of my coaching experience, I have observed many, if not most traders, tend to skip over getting the basics of Forex trading. They start investing in forex, following the herding behavior. Everyone is doing forex, I want to do it also without having an understanding what the Forex market is or why it exists and how it works.
If you think you can trade forex without learning the basics of Forex, doing so is a very big mistake and that’s the reason why high % of traders fail in this market.
That being said, you must take some time to study the Forex market and learning the basic terminologies, technical and fundamental analysis. You can refer to FX Leaders Forex Trading Strategies for handy information.
2- Read Well & Practice
Well, as soon as you read all the strategies, terminologies and you feel like you are familiar with the forex market and you ready to trade then take some time to implement your knowledge on real-time price movements. I am speaking of trading a demo account. Try to practice whatever you have learned until now. Treat demo account as it’s a real one and try to maintain and grow it with realistic targets.
3 – Building a Powerful Trading System
By the time you practice in a demo account, you will realize that this particular method of trading is working out for you and you make more profits when taking a position (buy/sell) based upon particular technicals indicators, or maybe on the release of particular news.
You need to write this method, and follow it consistently until you gain a full grip on this. The trading system should be flexible to add new rules but should be followed strictly while trading.
4- Your Real account vs. Your Girlfriend
Since you have already built a trading system, tested it on a demo account and feeling confident to trade the real money. Heads up, real trading isn’t as easy as the demo. As soon as you begin trading the real account, the psychological biases start dominating your mind. Since it’s real money, you will fear losing money and that’s what leads to loss-aversion. You will start holding your positions which are in the loss for a longer period of time while closing the positions in profit quickly to avoid a reversal.
So, the idea is to treat your real account as your girlfriend. Don’t trade aggressively, be polite, confidence and keep patience. Spot good trade opportunities, determine the target and wait calmly until the target is achieved.
5- Be Social – Don’t become a boring person
One thing you should know about the forex trading is that it’s boring. You may have to wait for a perfect setup for hours. It’s very likely that you won’t find any trade in a whole day, especially when the market lacks volatility. Ultimately, you become a boring person. But it’s really easy to overcome this.
Socialize with people who you want to be like. Share your ideas with them and listen to their trade idea. Doing this keeps you active, motivated and social. That’s pretty much it for now, enjoy rest of your weekend. See you guys again tomorrow with some great trade ideas and forex trading signals.