What is Forex?
The foreign exchange market also known as Forex or the FX market is the world’s most traded market, with a turnover of $6 trillion per day.
How does it work?
Forex trading works by simultaneously buying one currency while selling another. If the currency you have bought increases in value against the currency you have sold, you can close your position for a profit.
Learning how to successfully trade Forex can be complicated for beginners. Most people want to get rich overnight, no matter how unrealistic it may sound. The world of Forex trading can be a little overwhelming, especially if you are new to the industry, and don’t know the rules yet. You need to dip your toes in before you go any deeper. If you already have experience with Forex trading, it’s always good to remember the basics. These are some of the rules you have to follow in your Forex Journey.
Before you start your trading journey, the best is to research on how to go about it ,and look for the best Forex trading institution like GOLD FOREX INSTITUTE (They will teach about all the Forex Trading tools and strategies you need to trade and all the Forex secret you need to know ) which can help you in your Forex trading journey . As with every new practical learning activity, trading requires you to start with the basics, and move slowly until you understand the playing field.
No list of currency trading tips is complete if it doesn’t mention strategies. One of the most common mistakes beginner traders make is not creating an action plan. Figure out what you want to get out of trading, the kind of trader you want to be and the strategy that suit your trading aspect. Having a clear end goal in mind will help with your trading discipline.
2- Choose Your Broker Wisely
Choosing the right broker is half the battle. Take your time to check reviews and recommendations. Make sure the broker you choose is trustworthy (good spread, swap and commission), and suits your individual trading personality. Remember, there are lots of fake brokers out there who will only stand in your way. Go for an authorized broker with a license. At Gold Forex institute we give the guidelines and the rules you need to while choosing the right broker like one of the Best in FX GOLD TRADING. Start by investing small sums of money, and keep in mind the old adage ‘slow but steady wins the race’.
3- Take Control of Your Emotions
Don’t let your emotions carry you away (grid). It can be very difficult at times, especially after you’ve experienced a losing streak. But keeping a level head will help you stay rational, so you can make competent choices. Whenever you let your emotions get the better of you, you expose yourself to unnecessary risks. Exercising risk management (Stop-Loss, Lot size, Margin) within your trading will help you to minimize the risks. Stress is one Forex tip that sounds really obvious because it really is. But guess what? Trading under stress generally leads to irrational decisions, and in live trading, that will cost you money. Therefore, identify the source of your stress and try to eliminate it, or at least limit its influence on you. Take a deep breath and focus on something else. Every person has their own way of overcoming stress, some listen to classical music, while others exercise. Listen to your mental health and learn what works best for you. One thing you have to know is, it is every time you have to trade when you have a good trading plan (When, time, how, where, which one to focus on …)
4- Practice Makes Perfect
Of all the Forex tricks and tips for beginners, this is the most important. You are unlikely to succeed at anything on your first try. Only constant trading practice can yield consistently top results. But you probably don’t want to lose money while learning the basics, right? Luckily for you, trading on a demo account costs nothing to set-up, and is free to use!
Another daily Forex tip to follow is to keep a journal of your trading activity. This will help you monitor your performance and find patterns within your trading. Basically, it’s easier to learn from past mistakes when they are jotted down. Keeping a journal also improves your discipline. Be sure to write down everything and be honest about it, as you have to be your own biggest critic.
5- Psychology is Key
Every trader is a psychologist at heart. When you’re planning your next move, you have to analyze market movements and review your own psychology. Mastering your psychology will protect you from many losses along the trading development path. Patience, when it comes to trading, this old saying is not just a cliché. True success is never instantaneous. It’s the result of consistent work and planning. Many beginner traders look for an easy, fast path to profit. Don’t bother, it doesn’t exist!
6-No Risk, No Success
Not even Forex trading tips and tricks can guarantee you success. When you decide to become a trader, you should have already accepted the possibility of failure. In case you didn’t, here’s a reality check. You won’t make profitable trades 100% of the time. Don’t let false advertisements get in your head, either. Instead, be realistic about your Forex trading methods and goals, at Gold Forex we make sure your winning trades are more than your losing trades.
Forex trading takes consistent discipline and practice to yield success and at GOLD FOREX INSTITUTE we give our students 5 months mentor-ship for free after they complete all the levels.
BY DEDE ELORM ADJANKE
Business Development Team Leader