You probably heard about the promising forex trading game, or you’ve been playing it for a while but haven’t been as successful as you expected.
Forex trading is complicated there’s no way around that. Becoming a successful forex trading might be challenging, but not impossible if you have the right information on hand.
If you’re here it means that you are a forex trader looking to take your forex trading game to the next level. Don’t know how? We have you covered.
Ready to become the best forex trader?
Forex Trading Basics: Where to Start?
Before we get into the details of how to trade forex successfully, we’ll go over the basics about forex trading. What is forex trading?
Forex trading is the asset buy and sells that’s done on the foreign exchange. The assets traded in this exchange are currencies.
If you’re new to this type of trading you might be a bit hesitant and, think that you can’t make much money doing this. Yet, you can make money just have to know the right way to do it.
How to Become the Best Forex Trader?
Some people say that you can only be a good forex trader if you’re one of the big fishes like hedge funds or banks, but that isn’t true. You can be a great forex trader in the game if you do it the right way using the tools we’ve available.
Even if you are an experienced and successful trader in other assets like stocks, forex trading can be challenging. Here are some forex tips that can help you take your forex trading game to the next level:
1. Practice Makes Perfect
Unlike other investments, you can practice before trading in the market. To do this you’ll need a demo account. This is the number one mistake many forex traders make.
When you get a demo account, you’ll be able to practice trading without losing any money. It’s recommended that you practice on your demo account for 3 to 6 months and, most importantly win consistently. If you can’t do this, then you shouldn’t start trading your money in the forex market.
2. Trading Is a War so Strategize Accordingly
It doesn’t matter what type of trading you’re doing, we know that winning against the market is a war. Like any good commander, you should strategize toward your goal.
One way you can do this is with a risk/reward strategy. An example would be investing 10 pips valued at $50 for a return of 50 pips. This means that you would invest $500 for a return of $2,500.
Now that’s the right strategy to make money. If you get used to using this strategy or similar forex trading techniques, you’ll grow your portfolio in no time.
3. Seek Trading Advice
Many people don’t follow this tip, but this might be just what you need to take your game to the next level. You might be thinking why I must get a trading coach if there are so many books and information about forex.
We aren’t saying that you must but, you should consider talking with successful forex traders. They can help you understand better what the forex market is all about. Human insight can’t be replaced by books.
Reading all you can find about forex is a great start; but if you combine it with the trading advice, you’ll be able to trade better.
4. Be a Disciplined Forex Trading Samurai
We know that the investment game is adrenaline pumping, fast-paced, and risky. It can make you do crazy things. Successful traders keep themselves under control.
Yes, we’ve all been trading. Then we either start losing money or winning a lot, we start to hyperventilate and decide to pull the plug or go all in poker style.
After the storm settles, we go into panic mode because we either got too greedy or our losses got pretty hefty. That’s why when we are losing, we should cut our losses short. While if we are winning, we should let it run like a river and keep an eye on the investments.
5. Using Free Forex Signals
Believe it or not, there are tools you can use that can help improve your forex trading performance, one of them are forex signals. Some of them are available for free. Yes, you read that right these tools might not cost you a dime.
Forex signals are possible trades sent to you from signal providers. You can use them log on your account, and make the trade. Without having to spend hours analyzing the market to know what trades to place.
Some of these signal providers give you that information for free. Yet, others provide free and paid services.
You might try the most budget-friendly option depending on your investment activity. Another thing you can do is start with the free option and work your way toward a paid service according to the results you get.
6. Don’t Give Up
Yes, you read that right. You must be thinking but why would I give up? If I was going to do that I wouldn’t be here.
Well, you might not feel the same after you’ve spent a while trading. If you’re trading already, you know that forex trading can be frustrating at times.
You might’ve practiced a lot on your demo account, but aren’t able to do the same thing once you go live. Don’t get desperate, focus on applying the same techniques you used on your demo account, and you’ll do great.
Wrapping It Up
Becoming the best forex trader shouldn’t be too complicated. Yes, it might take more time than you expect. But, the rewards can be infinite if you focus on discipline, practice, and learning all there is about the forex market.
This might not seem like much but, it will require dedication and extreme patience from you. Just remember Rome wasn’t built in a day.
So you won’t become the best trader in a blink of an eye. But, focus on your goals, don’t give up and you’ll leave the forex market in the dust in no time.