For anyone that has seen the films Wall Street or the Wolf of Wall Street, giving up your day job and making a good living from trading the financial markets is a faraway dream. Let’s be clear, if giving up your day job and becoming a full-time forex trader is what you want, then the chances are you will fail. Less than 5% of all forex traders are good enough that they can make a living from forex trading. This isn’t saying that it is impossible, just very difficult. If you want to be in that 5%, follow these top five tips to give yourself the best possible chance of making that 5%.
As with most things in life, the more committed you are to something, the more likely you are to succeed. Forex trading is no different. To be a top professional forex trader you have to be committed. Be honest with yourself and how much time you are able to commit to forex trading. To be the best, you have to be able to commit a certain amount of time each day studying the markets, making the trades and analysing the trades you’ve made.
Get the Basics Done
The most important part of any structure is the foundations. Build a house on solid foundations and you have a strong house. Build a house on weak foundations and the chances are that it will collapse at some point. In forex trading, the foundation is the study. Nobody is expecting you to devote your life or all your time to study. However, a minimum amount of study is needed to understand the basics of forex trading and get a feel of how it all works. There are plenty of free resources on the internet that are great for the forex beginner. These free resources will give anyone with little or knowledge of the financial markets everything they need to cover the basics of forex trading. If you are wondering what those basics are and where to find the information you need. a good place to start is https://vladimirribakov.com/forex-for-beginners-complete-guide/
Choose Your Assets
There are literally hundreds of different assets to trade. In fact, you are spoiled for choice. The important thing is to resist the temptation to trade as many assets as possible. The best way to start forex trading is to choose just a few assets, three at most, to focus on. The reason for choose just a handful of assets is because you need to use the limited time that you have to narrow your focus. The more you know about one particular asset, the more you will learn the different nuances of that asset. This will make it easier to predict its movements in the future. The EUR/USD is a good asset to start with. It is highly liquid, the most traded asset and there is an abundance of information readily available to learn and master that asset.
Master the Risk
Risk management is an important element to becoming a successful forex trader. Some quick rules are never, ever invest more than you can afford to lose and never invest mo9re than 6-8% of your total investment fund on any one single trade.
Control Your Emotions
The last and probably the hardest task for any forex beginner or indeed an experienced forex trader is having the ability to keep your emotions in check. It requires strong personal discipline to control your emotions and you will be tested many times in your forex trading journey. Make sure that you do not chase losing trades. Chasing losses invariably ends with more losses. Equally, it is important not to get carried away when winning. Stick to the strategy that you’ve practiced and perfected and keep your emotions out of trading.