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So if you were a beginner who, enticed by how much your peers have been telling they made, wants to get a piece of the pie, here are some tips on what to look out for in order to get started.
Study The Process
If you have a pal who does this sort of thing, it would be wise to draw close and seek his/her counsel. Do some research on the internet. Good and thorough research should reveal to you what strategies there are and which should fit given your financial behaviour. It should also reveal to you trading platforms and brokers there are and which offers the best possibilities for you as a beginner trader.Practice Discipline
It is a lot like gambling. Actually, some say it is gambling pretty much. With forex, discipline will keep you safe. Do not use more than you can actually afford and do not outspend it.Calculate Your Expectancy
According to Investopedia, “expectancy is the formula you use to determine how reliable your system is”. Here is how to calculate it according to Investopedia,“Take a look at your last 10 trades. If you haven’t made actual trades yet, go back on your chart to where your system would have indicated that you should enter and exit a trade. Determine if you would have made a profit or a loss. Write these results down. Total all your winning trades and divide the answer by the number of winning trades you made.”The formula for calculating is E=[1+(LW)]×P−1 where: E=Expectancy, W=Average losses, L= Average losses, P=Percentage. If make ten trades with six resulting in wins and four being losses, your win rate is 6/10 and your loss rate=4/10.
Perform Weekend Analysis
When the markets are closed on weekends is a good time to review and analyze charts that may or may not affect your trade. This is would allow you to consider your trades objectively and plot your strategy thus.Be Patient
Good investors do not punt at every opportunity. Of course, you will get better at spotting opportunity with time but consider being patient as a virtue, it will serve you well in this venture. Even Warren Buffett, the world’s richest investor corroborates this fact.Follow The Experts
This IS the cheat code in most things like this. If you follow those who know, you will cover more ground quickly in learning forex while when they win too. You must make sure that you pay attention to their plays, however. As with most things investing, forex takes a lot in mental strength and patience. You do not go into this sort of venture with money you actually need hoping to make more. That is your greed talking and it will surely do you in if you do not rein it in. Spend more time researching than anything else as it is the least you can do to make a profit. The rest is for the charts to decide. Featured Image Source: International Policy DigestGot a suggestion? Contact us: editor@connectnigeria.com