How I began my Trading career
My journey as a
Trader began 6 years ago when an Investment Club was offering some
unbelievable returns on Investors money. Naturally I had to dig deep to
find out exactly what could possibly generate such rate of return and
hence my introduction to Forex Trading.
Much to my demise I ended up
being one of his Investors and ultimately lost most if not all of my
hard earned savings accumulated over the years.
Determined to succeed; I involved myself in a number of onsite and online courses whilst applying the tools on both a Demo and Live Account. The experience has taught me many lessons from my failures and mistakes but one thing I know is crucial for your success and that is “KNOWLEDGE”. Education is the best gift you can give yourself .
The Importance of a good education to become a FX Trader
Currency trading is the most high risk form of trading to be engaged in. Whilst the potential is there for high returns, the same is true for huge losses for Investors who are not disciplined and educated.
With a solid education, you are prepared to make informed trading decisions instead of impulsive emotional ones that can often lead to major account disasters. Preparedness allows calculated trading decisions in particular with the timing of your entry and exit strategy coupled with proper allocation of capital or good sound equity management as we refer to same.
Important things every Forex Trader should know
Once you are better equipped to begin trading; you may want to consider joining a forum like community where you learn from the more experienced traders. Whilst sharing trade opinions can be a good idea, the final decision is yours. Make your own choices, remember you are trading your money.
1) Know the Technicals and Fundamentals that drives price action
2) Exercise good money management skills
3) Control your emotions
4) Forex is based on probabilities
5) Do not go against the market
6) Do not fight the market; instead be Patient
7) Keep a trading journal
8) Keep it simple
These key points above are critical to a Traders success. Get to know
the market and gain self-awareness for risk tolerance and proper
allocation of your capital to ensure your trades are never excessive.
One you have determined your financial goals, make a plan to include the following:
*Time Frame to trade
*Hours allocated to trading
*Define your goal for each trade eg. amount of pips
A clear vision of your goals is necessary for a disciplined, persistent and patient approach to your trading success.
Remember, you will not be a genius overnight; the learning process never ends. Money management and emotional control is just as important as knowing how to read your charts; once you can overcome them and begin to realize consistent gains your confidence will increase and you are well on your way to enjoying your financial freedom.
I hope this was informative especially for new traders.
Good luck everyone.
