Wednesday, 5 April 2017
3 steps to stop losing money on forex
Most brokers would say forex trading is super easy if you put some hours to learn fundamentals and so… But the real fact is that making money in the foreign exchange market requires much more than a few hours of reading.
Treat forex as an investment
Some people tend to forget that forex trading is actually as any other investment. Maybe it’s because market is open 24 hours 5 days a week, or maybe it’s because you can manage your capital on your own. If you want to make money on forex trading, you should start treating it as an investment. It’s not a video game, it’s your money moving around out there.
In order to effectively change your approach to forex trading, start by getting a neutral education from some institute, online training course, or anywhere that it’s not branded by a forex broker. This will allow you to gain some expertise, learn basic vocabulary and slowly begin working with indicators and identifying trends.
Another excellent way to become a better forex trader is to keep yourself out of the screen. Let’s be honest, if you would be trading stocks, you would probably not be on the phone all day long with your broker. So why should you stick to the screen 24/5? Give yourself a break, believe in your strategy and lose the anxiety, emotions are not good companions.
Follow the news (every single day)
Nope, this is not a joke. To make money, you have to be fully informed of what’s going on not only on your backyard but all around the world as well.
Just as you have learnt that things are not black or white, trading is not about fundamental or technical. It’s about both simultaneously, they complement each other.
Practice, practice and practice
Reading and learning is rewarding. No doubt about that, but eventually you would have to face market conditions and feel the anxiety of real trading. Believe us, it’s a complete different feeling than working with demo accounts, which are a great way to start although.
Nowadays, you can access the Forex market with an extremely low initial investment and thanks to leverage, you would be able to profit even when your balance is shouting for help.