If done right, a career in forex trading can be very rewarding. If you are a good trader, you can generate positive financial returns while maintaining your freedom. Many people want to start a career in forex not necessarily for the money alone, but for the lifestyle it enables them to have. Here we will present you with five key tips to kickstart and develop your career in forex trading:
- Trade with a regulated broker: This is an essential first step, as choosing a non-regulated broker can expose you to fraud and loss of your money. Choosing a regulated platform (here is one example) can help you trade securely, without worrying about the safety of your funds.
- Practice technical and fundamental analysis: technical analysis is the ability to predict future price movement based on chart patterns and historic movement, whereas fundamental analysis is the ability to predict future price movements based on the current performance of the company (in case it is a stock) or country (in case it is a currency). It is not enough to learn those two types of analysis. You have to practice them, often on a daily basis, until you can master the art of trading. You can do this by listening to experts and trading on your own. Many brokers usually provide free support and learning services in addition to trading services.
- Apply strict risk management rules, and do not borrow money to trade: trading involves risk – something you should be prepared for. You should have all the necessary measures (such as trade size, stop loss, diversification) in place to ensure that your risk is minimised. Moreover, it is not recommended to borrow money to trade. You are supposed to only trade with money you can afford to lose, and borrowing money for trading purposes will increase your anxiety and impact your trading results.
- Be in charge of your own emotions: Your mood, mindset, and emotions impact your trading results a lot more than you think. If you are not in charge of your emotions, you will most likely engage in revenge trading (you enter a position right after losing a previous one) and make wrong trading decisions. If you are not in the right mindset, then it is better to stay away from the screen until you are calm and have clarity of mind. Good trading results will usually follow.
- Take trading seriously. You might think that trading will enable you to become rich overnight. If you do not practice effective risk management, chances are that the opposite will happen; you will lose your money overnight. You should approach trading as if you are managing a business, make calculated decisions, and then deal with the consequences. Do not spare efforts by not analyzing the markets properly. If you put in good efforts, you will become much better with time.
Trading forex is fun if you do it right, but you should be patient until you acquire the needed skills. You should also choose a good trading platform. Otherwise, your trading skills won’t matter much.