Are you excited about Forex? I am. For the past 15 years, I have made Forex ‘my business’ to learn as much as I can. Forex market is the largest and most liquid financial market in the world and includes trading between large banks, central banks, currency speculators, corporations, governments, and other institutions.
The more time you take before you actually begin trading, the better your return on investment. When you get involved with forex market, you should know that you are sending money to be invested with other countries. It is very much important to work out a trading plan before getting into a trade. A simple plan should consist of clear entry, pip target with exit plan; and when you reach your target, you should exit with profit. You should also have an exit plan should your trade does not work out and you have to take a loss.
It is very easy to get carried away by staying longer in a losing trade, hoping it would turn around in your favour. Most often, it doesn’t and you end up losing more than what you were prepared to lose.
In order to make Forex trading as productive as possible, you need to have at least 2-3 different trading strategies. There are 3 ways the price usually fluctuates; it goes, up, down and sideways. Anyone can make money when market is trending, i.e. going up or down, but trending market does not occur every day. Long trends are over 100 pips. Most days, we are dealt with mid trend between 50-70 pips or range markets between 30-50 pips.
A trader must learn to recognise which market he is dealing with and use appropriate trading plan to trade the market. In my experience, many traders do not recognise and expect one trading strategy to work all the time. This is wrong and usually ends up in a loss and sometimes depleting the entire trading bank. It leaves the trader frustrated and looking for better trading systems only to find the losing cycle repeating itself over and over again.
So, how can one truly succeed in trading? The best option, if you can afford it, is to have a trending mentor who can devote the time you need to learn. A mentor is someone who has gone through the pitfalls of trading, has proven strategies which makes money, and is prepared to share it with you.
It is useful to learn from your own mistakes, however, learning from one’s mistakes is costly and sometimes, it is difficult to know what you are doing wrong. By having a mentor, you will be able to avoid many mistakes you will otherwise make on your trading journey. An experienced mentor has already walked the path and knows what ‘not to do.’ The valuable experience provided by the mentor can be the difference between your success and failure.
If I were offered the mentoring when I started my trading journey, it would have taken me a lot less time to learn and definitely saved me a lot of money in the long run.
The value and expertise a mentor can bring to your training is priceless. Never start your trading journey without the personal help. You will save a fortune in time and experience.