Almost all forex trading beginners get into trading with wrong mindset, not because it’s their fault. We all begin that way. We want to make a lot of money at very short period of time and with a very small investment.
If you want to be one of successful trader, read every single words in this article before you start trading.
These are the list of what you must know before you start trading.
- Trading is not getting rich quick scheme: If you are looking for ways to get rich quickly, stay away from trading forex it’s not one of them. This kind of mindset will only let you lose money fast.
2. Greed will make or break you: In forex trading, greed will make you or break you, but you have a better chance of been break than been make if you are greedy. The game is about a long time, slow and steady.
3. You can wipe out a big account, it as easy as small: Some people think more money will keep them safe in forex, well that’s not true. There is no amount of money that you can’t lose in forex if you don’t have proper money management and discipline and profitable strategy.
4. Forex trading takes times: Don’t get into forex trading with the hope of becoming expert in 30 days. It’s like any other business. It will take takes time and consistent training and practice to develop a profitable strategy
5. Losing money is inevitable: There is no way you won’t lose money in forex trading. The goal is to make sure you are profitable at the end of the week or months or year. Depends on your trading strategy and goals
6. Don’t trade with emotion: Forex trading is a game of big heart and big head, make sure you have both or ready to develop it before you get into it.
7. Don’t start trading if you don’t have good money to invest: Hoping to turn $500 into $50,000 rarely happens if it does happen. Make sure you have another income source before getting into trading.
8. Don’t trade with money you can’t lose: In forex trading, your money is always at risk. If you are can’t afford to lose the money, don’t trade with it.
9. Don’t take a loan to trade: This is common sense, except you have another source to repay the loan, don’t take a loan to trade forex with the hope you will make money and pay it back with forex.
10. Test with a demo account before real money: Always test your skill and new strategy with a demo account for 1 week to 1 month consistently every day before using real money.
11. Always go for low spread broker: There are a lot of low spread brokers outside there, if you are not sure which to go for, sign up here and try their demo account first.
12. Invest your profit in something else: When you make good profit find a stable investment to put your money in. To avoid losing all your money anytime a big loss happens.