Forex or Foreign Exchange Market is the largest financial market in the world with average turnover of more than 1 trillion US dollars on daily basis. It is the best platform where one can earn a lot of money in a very short span of time. However the failure rate in this financial industry accounts for more than 90% and people who are most affected are “Beginners”.
One can hear cases where people have lost a major capital in the initial year of trading which in turn can leave them bankrupt at times. If you are one of those people who are looking forward to invest in the currency trading, then there are some basic guidelines you need to follow so as to avoid the pitfall and they are discussed below under the following headings.
To get a winning edge over others, it is important that you follow a basic guiding principle that will not only help you get proper knowledge of the stock market but help you earn decent money at the same time.
Some of the Forex trading tips are mentioned below:
1) Abstain using FX Robots: Try to avoid these robots because it is completely wastage of time, money and resources. It will be the least helpful and the worst part is that you are likely to lose money instead of earning any. It is useless and you should stay aloof from using it.
2) Smart Work is the Key: There are only 5% people who are into elite Forex trading list and if you want to join their league, you will need to do smart work. You will have to understand the basic principles and have to think outside the box instead of following the current trend. Working overtime will not get you anywhere.
3) Inter-dependency is a Must: Try to be interdependent when it comes to currency trading because it can save you a lot of time and you will make your own decisions. If your broker is doing stock market business on your behalf, try to be in their touch as much as possible and discuss the strategies with them...
4) Go for Low Leverage: There are many people who will go for a leverage of 200:1 but you should know that it does not work all the time and you will end up losing money. Go for 10:1 leverage because it will keep all the associated risks in control and you will start earning without expiring a lot of failure.
5) Try to be Disciplined: When you start earning money, don’t get swayed away in overconfidence. Discipline is the key and you should try to make small profits instead of one big one because it will help you cut losses and make profits in the long run.
There are many beginners who don’t get desirable profit in the Forex Trading because they commit basic mistakes which in turn does not allow them to make money.
Some of the loopholes that they do not avoid are mentioned below:
(a) They Don’t Listen to Market: People don’t respect the stock market signs and are unable to apply the trading skills in right context which in turn does not generate enough profits for them.
(b) They Don’t Take Pleasure: Most of the people are not motivated and there is no passion to learn and get better with the trading skills. They consider the whole process as a chore and nothing else.
(c) They Set Impractical Goals: In order to succeed in currency trading, one needs to devote a lot of time and incur losses at the same time. Many beginners have the notion that if they want to succeed, there should not be any losses. They put extra pressure on themselves and things turn out disaster for them in the end.
Forex trading for beginners has its own share of profits and losses and you have to accept it. This is a very good place where you can earn handsome money but you got to understand the risks associated with it. It is imperative that you do a very good research and do proper planning before you set out to invest money in shares.
From Hussein Chatin
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