Chances are you’ve come across a multitude of Forex trading articles already, yet have never actually gone ahead and opened up an account. Or maybe you have done just that: open up an account… to be left in confusion only moments later, in awe of it all. You’re quite the boss and perfectly capable to do some digging on which brokers to avoid, to end up with a good, trustworthy forex broker. But then what? Forex trading is often advertised as an easy, simple thing to do, and we can reassure you: it is. Not as easy as simply breathing air perhaps, but as easy as riding a bike, for sure. And just like in the latter case, you just need to acquire some basic skills to pull it off. There are plenty of high-quality Forex trading guides available online, so make sure to check them out. To get you going, here are five fundamental, yet simple pieces of advice to kick start your Forex trading career.
Stick to the major currency pairs
Trading currencies is, rather obviously, done in pairs. The most frequently traded currency pairs are considered the major currency pairs, such as EUR/USD. Stick to those in the beginning, and get familiar with them. The South African Rand might remind you of that amazing safari you once took, but staying away from the so-called exotic currency pairs during the startup phase, might be a good idea. Get your feet wet first, and gain some confidence.
Start a journal
Possibly the best piece of advice we can give you is to start a journal. And by that we do indeed mean an old-school physical one. You know, one of those paper ones without a touchscreen. Using handwritten notes is a great way to actively remember the trades you’ve made, allowing you a steeper learning curve. On top of that, you’ll always have your entire trading history to fall back on, in case you want to spend some time on analysis.
Follow the trend
If you’re still looking for that ultimate piece of strategy advice that will make you rich overnight, stop right now. There is no such thing. Strategies that never fail only exist in forex fairy tales; a remarkable and surprisingly large genre, we might add.
Would you rather act on historical information that is readily available, or on imaginary future occurrences? Recognizing trends is a popular way to approach forex trading. Rather than just guessing what is going to happen next, get familiar with analyzing currency trends. It is exactly this kind of long-term, in-depth approach that will allow you success on the foreign exchange market.
Don’t let your emotions get the better of you
This piece of advice is so obvious, it’s almost not worth mentioning. However, since you are most probably made of flesh and blood, you will inevitably end up in situations where your emotions start taking over. Sit back, take a deep breath, think about those cute baby elephants you spotted on your South African safari, and just stick to your original strategy.
Practice makes perfect
Yet another cliché. But we include it anyway, just to remind you that you need to be patient. Ever heard about the ten-thousand-hour rule? We hate to break it to you, but you will not be a forex trading wizard overnight. You may never be one. But by having realistic expectations and a bit of discipline, you’re well under way turning a nice profit. Remember our bike riding analogy? Just get out there and before you know it, you can do without your training wheels.
So, there you have it. Our basic little guide with tricks to get you off to a good start. Start with the simple steps outlined above, stay disciplined and feel free to reward yourself a little once the profits start coming in. Spoil yourself with that new gadget or visit a happy place to recharge your batteries. African safari anyone?