Forex trading is often presented to the average man as a kind of investment miracle – a way of quick enrichment. And as an example, of course, big names are cited, like Warren Buffett or George Soros, who made a fortune precisely through trading in the foreign exchange market. But how many of the beginning traders achieve success? And can invest in Forex be the beginning of a successful career as an influential investor?
For 75% of traders, the beginning of the Forex game and the subsequent independent attempts to master the art of currency speculation are sure steps to bankruptcy. Why is this happening? Partly due to the lack of awareness of novice traders. Partly – due to arrogance and unwillingness to accept the rules of the game, adopted in the world of “big investments”.
Do traders have a chance to avoid bankruptcy? In fact, it is enough to soberly assess your strengths and follow a number of simple rules:
- First and foremost: Forex is not roulette or a lottery. This is a serious financial instrument, the development of which can take a lot of time. If you are not ready to spend time and money on this, there can be no question of a successful career as a trader.
- Trading in the foreign exchange market is a complex process with many participants. And the trader is only one of the millions of private investors who have gained access to conducting transactions through an intermediary – a broker, on whose choice trading success largely depends. But not all brokers are ready to instantly respond to the requests of their customers. Accordingly, the speed of execution of applications often does not correspond to the ideas of the players. When opening an order, you yourself must take care to minimize the risks – otherwise, if something goes wrong, closing the deal instantly is hardly possible.
- Forex trading involves not only generating income but also paying for brokers. That is why, when starting to work in the foreign exchange market, it is important to remember that the real amounts received on your trading account can be much lower than expected.
- The work of the investor is a complex process that requires a certain set of character and organization of the nervous system. After all, currency trading is a struggle of nerves. And here it is extremely important to maintain composure and sobriety of thought. Not ready for the fact that on the way to the heights of the financial world you will find inevitable losses, draining deposits and erroneous decisions on transactions that lead to loss of funds? Then inevitable disappointment awaits you.
- Remember that the only way to success on Forex is through creating your own trading system. Without a trading plan, it is impossible to make a reliable idea of the development of the trading situation. And this is the first step to collapse. Define the boundaries of risks that you can consider acceptable for yourself. And enter the game only when you really will be able to control the situation.
- Forget about the thirst for profit. It has nothing to do with serious work in the investment and foreign exchange markets. Do not try to hit the jackpot “here and now” – it’s better to learn how to profit from any, even not the most profitable, situation.
- Do not forget about the external factors of influence. The confusion in the trading situation can make the release of important news, changes in the global economy. Join the game only if you are confident in your own forecast. And don’t try to capitalize on dubious and overly risky situations.
- Limit risks – close unprofitable transactions before they lead to the loss of all funds. A negative trend can be much stronger than you expect.
- Try to catch the trend and trade in the direction of market movement. It is this strategy that most often becomes the basis for successful Forex trading.
- Use in practice the principles of money management. Limit risks, do not forget to withdraw profit, set a stop-loss where possible.
And what else should you know for those who are not ready to lose everything? How to recognize the right steps to bankruptcy and timely turn off the wrong path? The experience of successful traders and experts at brokers.ru shows that experience and knowledge help to avoid mistakes. Learn, invest in self-education, learn new trading strategies and improve your knowledge of the analytical tools used. Indeed, only one who has in his arsenal the most diverse set of trading instruments can count on the fact that his success in Forex will not be random, but logical and well-deserved.