(ThySistas.com) Like any form of investment, Forex trading has a lot of room for fluctuation, making it something of a double-edged sword. If you take the time to learn about it and build yourself a solid foundation, it can be an extremely rewarding experience. However, if you hurl yourself into it with no training or trading plan, you’ll only be setting yourself up to fail. Here, I’ll go through some of the best advice for getting a great start in Forex trading.
First, and most importantly, you have to take some time to build yourself a solid foundation for trading. In my experience, all the biggest trading losses can be traced back to people’s failure to give
Without taking some time for proper Forex education, you’ll be almost certain to make a huge blunder, and wreck your personal finances. You wouldn’t buy a textbook and skip straight ahead to the most complex chapters. In the same way, you can’t get started in Forex by rushing straight to the act of trading itself. Start with the basics, and work your way up. You might be raring to start trading, but rushing in will certainly come back to bite you!
If you were as excited as I was to get started with Forex trading, then you may have felt a little disappointed by that first tip. I’ll say it once and I’ll say it again; all those baby steps are a necessary evil! So, when will you know when you’re ready to take the plunge and start trading for real? The answer to this question is almost all in your personal finances. For starters, if you’re toying around with ideas to fund your trading endeavors with money you may end up needing for your basic living expenses, then you’re certainly not ready to start trading live! To have any hope of success, you need to make sure you have a cushion of disposable risk capital. This is money that it would bother you to lose, but wouldn’t make you destitute.
When you’re playing with money which you need for food, bills or that next big treat you have lined up for yourself, then you’re going to be more emotionally invested in the various decisions you’ll have to make. This is a sure-fire way to ensure a loss! It may take time to build up this disposable capital, and that’s fine. While you’re waiting, try demo trading until you’re starting to see some consistent success. This will not only help you learn a little more, but will also show you the massive risk of making impulsive decisions and how quickly things can turn around.
I hope this brief post will get you off to a great start in Forex trading, and help you steer clear of all those newbie’s pitfalls!
Staff Writer; Lois Griffin