What is the first step to learn Forex trading?
BEGINNERS TIP TO FOREX TRADING
Forex is a vast market with unlimited potential. Due to its high volatility and a large number of worldwide traders, it is difficult to enter into the market for the new traders.
Before making any new investment plan, we must understand following about the channel of your traders:
1. Know your Purpose- Answer the following questions, it will help you pin your purpose:
• Why are you trading? (Extra income, Increase your savings, etc.)
• How will you trade? (Through your own research, services, fund managers)
These answers will guide you to plan your trading as per your financial goals.
2. Understand the market- Before jumping to the ocean, know its depth. Understand” What is the Forex market” and “how does it work”. Studying the nature of the market will help you to make a strategy for trading.
3. Make a Strategy and Stick to it- After brainstorming the Purpose and understanding the market, the next step is to figure out the right strategy. Some strategy will be suitable for your short term goals and some will be for the long term. Another important tip is to stick to your plans. Not everything is in your control, especially the sentiments which may make you drift away from your plans. keep them in check and commit to the plans that you have drafted.
4.Describe limits- Before jumping to any execution of your financial plan, define the limits- regarding time, risk, losses and any factor that can be determined in both monetary and non-monetary terms.
5. Emotional Discipline- Fear and greed are such emotions that stop human from taking rational decisions. So pre-decide all the precautions and determine emotional influences before starting your trading. It will assist you while taking the right financial decisions.
6. Learn with yours mistakes- Learning from the mistakes is a very underrated concept that can make you efficient in the market. To learn from your mistakes, make a journal and record your mistakes and learning.
7. Hire a Market expert- Working in Forex needs new strategies so for better trading and profitability it is advisable to hire a market expert as they are experienced and qualified market experts who can provide assistance for Forex trading. You can either choose a mentor who can support you with strategies and signal or from qualified fund managers.