August 10, 2020 | AtoZ Markets – Looking at trying your hand at trading and investing? There are many reasons why someone would start and why you should.
Consider forex trading as an option.
Forex trading is a massive market with lots of potentials, when done correctly. It’s easy to get into as there are low starting costs and it’s available all day. Also, it’s another way to diversify your portfolio.
Whether you’re new to forex trading or looking for a refresher, we have seven tips to help you be a successful forex trader in 2020.
7 tips for beginners to start forex trading in 2020
Below, you will find actionable advice for beginners and pros alike. Without further ado, let's dive right in.
1# Find a Reliable Broker and Platform
Your broker and platform you use for trading can make or break your success. From false brokers to those who have hefty fees, you want to ensure that whatever you choose is suitable for you.
One worth looking into is FP Markets. This company helps to connect traders with the market, precisely what you need when starting. Do some research and read more on FP Markets to see if it works for you.
2# Set Yourself Goals
It may seem odd to set goals for trading, but they’re definitely worth having. Goals help keep you on pace with your plan. Define a clear goal for why you’re trading and what you want to achieve from it.
3# Have a Trading Strategy
Any trader out there will benefit from having a well-thought-out trading strategy. A common forex trading mistake for new traders is diving in without creating a plan.
A trading strategy includes things like your goals, your risk levels, what you want out of trading, your stopping point, and entry point.
4# Set Up Risk Management
Risk management is crucial for successful forex traders (and all traders). Your risk management strategy is what can prevent you from incurring a significant loss. The point of a risk management plan is to help reduce your risks and keep you trading for a long time.
5# Practice First
After you have your strategies and plans all set, practice trading first. Although it’s tempting to get going and start winning right away, having a practice account will fine-tune your skills. Plus, it’s also a way to test out your strategies to see if they actually work. It’s better to do this with a practice account than with your real money.
6# Remember You’re Not Guaranteed to Win Every Time
Picture this – you spent hours researching a potential trade, getting everything set up, and you’re confident in your strategy. You go ahead with the trade only to end up losing. That’s a frustrating situation to be in, and it will likely happen.
No matter how much research you do and tips you look at, you’re not guaranteed to win every trade. Giving yourself this reminder can help keep your emotions in check.
7# Trade Rationally
Speaking of emotions, you want to keep a level-head when trading. If you have a significant loss and take on the next biggest trade to win it all back, that’s a risky move that could blow up.
Keep your emotions in check allow you to think rationally about each trade, which can help increase your chance of winning.
Before jumping in headfirst into forex and other trading methods, take the time to prepare yourself. The more prepared you are, the more successful you’ll become.
Think we missed something? Let us know in the comment section below.