The first thing that you need to do when it comes to trading Forex is to understand what you want to achieve. In deciding what you want, you have to be realistic. Set yourself a realistic and quantifiable goal. This could be something like: achieve 20% annual return on investment, earn 5000 USD of profit, get a total of 100 pips per month or something similar. Whatever you decide, your goal should also be easy to measure. What is also important is to set a goal that can be achieved over a long time frame - it is recommended to set an annual goal to achieve rather than a monthly goal.
Once you have set your main trading aim for the year, it is now time to start learning how to achieve it. The best way is to identify what resources are available to you. This may include the size of your deposit, the amount of time you are willing to spend on trading, and amount of available funds you are willing to spend on trading-related matters (software etc). Once you have a clear vision here, let's move on to the next step.
As you now know what you want to achieve and what you are willing to put on the table, it is time to make an action plan. This action plan should include the currency pairs you are planning to trade and the amount of trades you are going to commit to. This is of course difficult without having a proper strategy in place, so first prepare a template of your action plan, and then move to the next step.
Practice makes perfect - and yes, this is essential in order to understand how to trade Forex successfully. Start off by opening a Demo Account. When you use a Demo Account, the market conditions are nearly the same as on the Live Account, yet all of the trading is done risk-free using virtual money. Once you have a Demo Account, you should try out a number of different trading strategies to see which one provides you with the best trading results. Paper trading is essential, as during this process you can analyse your skills and see how your strategy could be improved. By trading a lot you can identify the best time frame, the best currency pairs and the most suitable trading strategy. This is a lengthy process that can take sometimes months, but it is definitely worth doing. Once you feel confident in your trading skills, return to the previous step and complete a trading plan with the data you collected during paper trading practice.
Once you have a direct plan of action, it is time to actually go ahead and start working towards your trading target. Set up a Live Account, deposit the same as what you practised with on your Demo Account and start trading according to your trading strategy and plan. You can of course modify your strategy and the rules you use, yet this should only be done when there are no open positions. This is one of the main rules to keep in mind. Many novice traders find it difficult to let losing positions go and they will try to modify their rules so they can try and turn a losing position into one that breaks even. This is a common mistake and it should be avoided. Changes in the plan are only possible upon performing a careful analysis and only when there are no positions involved in the trading.
These steps that we have addressed in this article are what you need to follow if you want to become successful in the Forex market. Being a successful trader takes a lot of effort and you have to be willing to go through a lot of trial and error. That being said, if you do succeed the benefits are more than worth it.
This wraps up our guide on learning how to operate on the Forex market in a successful way. We wish you luck and should you require any additional information on Forex trading please visit our education section.
ليست هناك تعليقات:
إرسال تعليق