• FOR SALE: One bedroom executive flat, Lagos, Nigeria | Get details]

Money Forex education: 5 tips to help you become a trading guru


siteadmin

Administrator
The Forex market is the largest market out there, so it offers numerous opportunities for making a profit. However, not every trader becomes successful here. If you are looking to become a successful forex trader, there’s a certain set of essential trading and personal skills you need to hone. In this article, we’ll share the 6 most crucial tips that will help you achieve trading success.
  1. Be prepared to invest time
The more you learn, the more you know. The world of financial markets is full of specific terms and processes. Learning about the Forex industry is by far the first and most vital step you need to make. As a trader, you have to understand what various indicators and technical charts are showing you. In addition to browsing through educational websites and sources about forex trading and learning terms, you may consider webinars and offline workshops for beginner traders offered by some major brokerage companies. AMarkets online broker, for instance, holds regular offline seminars in Nigeria. Check out their schedule for upcoming events and feel free to stop by to get insightful tips and professional advice from the company representatives:


2. Practice on a demo account

Becoming a successful trader involves lots of practice. A demo account allows you to practice trading without risking your money and get some basic experience before you switch to live trading. It’s especially useful if your trading journey is just starting. Open a demo account to see how the trading platform works, learn to place orders and work with trading charts. Demo accounts use real market prices, which creates a perfect simulated environment. It’s undoubtedly the best way to see how various markets and financial instruments move and practice profiting from these price fluctuations and develop your trading strategies.

3. Develop a Balanced Strategy

Speaking of trading strategies. A successful forex trader can’t afford trading sporadically, with no trading plan whatsoever. It just doesn’t work in this industry. Take your time to build a working and balanced trading strategy. Having a thorough plan of action will allow you to make bigger profits and mitigate substantial losses. There are a number of different strategies that you can pick from that are already developed. Any strategy is good as long as you stick to it.

4. Keep a trading journal

Keeping a trading journal is also one essential habit you need to adopt. Once you develop a solid trading system and test your results, start recording everything in your journal. Trading blindly without tracking your progress is like hitting the highway with no destination. Every time you enter a trade, record everything about it - trading instrument, direction, volume. Include your thoughts as you are making the decision to place an order.

Having a trader’s log helps you track your experiences in the market, process and carefully analyze your actions. You can return to those journal entries later to learn from your past experiences and see what went wrong in case you have one of those what‐was‐I‐thinking moments.

5. Manage your risks

A huge part of your success depends on your ability to manage the risks. Always remember the 2% risk management policy, meaning that you should never risk more than 2% on a single trade. As long as you stick to this rule, you should be fine.

By mastering these 5 essential skills, you will be more than ready to step into the Forex market and become a successful Forex trader. Take the time to master them before you dive right in. And remember to always start with a demo account. Practice makes perfect.
 
Top