Forex Trading can lead to great earnings depending upon the foundation and level of experience one owns. Similarly, one should not forget the dark side, meaning that it could end in a disaster which can be unimaginable. People who jump into forex trading with no prior knowledge and experience will only end up in losing their investment in no time. From this, I mean to say that if you don’t have a proper forex trading plan ahead of starting your forex trade account it would be just a mere waste of time and money.
I being a student of Finance started Forex and Commodity Trading 10 years ago. With the experience I gained throughout the years, I have learned that Forex Trading can be very easy if one can develop the right skills and strategies. This blog depicts my own personal experience and will help you with developing the basic ideas of how to get started to Forex Trading resulting into consistent and healthy profits.
According to my own personal experience, the most important thing is how to fund your investment. Funds used in the Forex Trading market should be out of the personal savings and not from the real disposable income which you earn. It might have sounded funny, but it makes a great impact. If you are using money which at the end of the month needs to go into paying your rent or other unavoidable expenses, you are destined to lose as you will become frustrated and will end up in deriving wrong strategies.
Another, basic and very important idea about Forex Trading is “Slow and steady wins the race”. By this I mean that never ever divert from your trading plan. Greed for making large profits often ends up in loses. Sticking to your basic trading plan will result in healthy and consistent profits as you have a plan when to enter or exit a Forex Trade.
Always maintain a record of your trade. In the beginning, I never used to maintain a record of my good and bad trades. Once you develop a good habit of maintaining a record you would feel more confident while placing your trades as many times you will learn more from your bad trades. Maintaining a balanced level of confidence along with knowledge and experience is very helpful in turning losses into profits but it should be worth remembering that over confidence in Forex Trading can turn a profit making trade into a loss making trade.
Finally, it is always a good idea to learn from other people’s experiences and ideas rather than doing your own experiment. Before jumping into Forex Trading you must complete your research and homework. Remember to keep things simple and steady; it is very important in Forex Trading. According to what I have learned in past 10 years through practical experience is you need to develop simple and easy skills in forecasting and decision making if you need to be successful in Forex Trading.