Forex trading can be very exciting to the new trader once he’s tried his hand at it. Making money just by making a speculative investment can create an euphoric buzz but bear in mind that like all speculative investments, there is grave probability that you might lose some if not all of your money. To minimize the chance of seeing your entire fortune being drained by bad Forex trading decisions, here are some rules for you to adhere to.
- Rule #1 – Don’t be overconfident: If you are somewhat a newbie at Forex trading, don’t rest on your laurels too soon after you’ve had good profits in a day. Don’t pool all your money and invest heavily. Instead, trade using small, modest margins. Use a small portion of your Forex trading funds to purchase reliable online Forex trading platform. Do not be tempted to trade what you are ready to lose as you can actually spend much more than what’s in your Forex trading coffers. Don’t let greed rule your mind and most importantly, you should only increase your Forex trading margin once your experience and expertise grows.
- Rule #2 – Increase your thirst for knowledge: Don’t be afraid if to crave for more information on Forex trading. Stay informed by subscribing to the right financial and political periodicals. The Internet is a good place to start. In fact, it’s one of the best places that will offer Forex trading information for free. You are free to Google for reviews on the best online Forex trading platform available.
- Rule #3 – Economics for Dummies? You bet! It’s never too late to sign up a college course. If you lack the time, money and commitment, another alternative is to read the Wall Street Journal as regularly as you can.
- Rule #4 – Stand on your own two feet Be independent and don’t be afraid to rely on your gut feelings. Don’t rely too heavily on gossips heard over the grapevine or depend too much on unfounded tips. However, if you need help, there are very user-friendly online Forex trading platform out there that you can rely on in your path to further understand and master the complex Forex business.
- Rule #5 – Practice, practice, practice! Test the waters before you fully immerse yourself in Forex trading by creating a demo account using online Forex trading platform.
- Rule #6 – Keep your friends close and your brokers closer It pays to have trustworthy brokers close by. Strike up a good relationship with them and take advantage of their expertise. After all it’s a win-win situation! It also never hurts to be chummy with other traders who know what they’re doing.
- Rule #7 – Keep your eyes peeled for historical trends : Study and scrutinize Forex charts whenever you can. Most good online Forex trading platform will provide these at little or no cost at all.
- Rule #8 – Know when to leave : The trouble with most Forex traders is that they do not know when to exit trades. If you have been suffering heavy losses, it is best that you pack your bags and leave that particular trade. Don’t hope for the tides to turn so quickly. Likewise if you are on a winning streak, don’t retreat so soon due to fear that things will go sour.
- Rule #9 – Know your geography … and what happens in other countries. This can be very advantageous to you once you gain insight about the financial and political activities in these countries where issues like inflations can influence your Forex trading profits.
- Rule #10 – Shut out the stress Lose your head and you’ll lose your funds. Keep your cool and you’ll see those cash rolling in.