Earning truthful money may be difficult without the need to struggle, steal or scam others.
This is what we call “clean money” that you can just get by making good use of all the opportunities around you.
While forex trading offers employment to several jobless people in many parts of the world, a lot of innocent people are victims who finds themselves losing a lot of money likewise.
I remember losing a lot of money, more than $1,000 within three months in forex trading while I was still a beginner. I didn’t know how to trade, but I directly entered into live trading even without considering any demo account.
I was over excited and believed the best way I could learn and make money faster is using a live trading. This was a big blow to me because the money I was using as trading capital was from a bank loan and not my personal savings.
When things got worse than I had expected, I decided to leave forex trading completely and forget it for bad and forever. I cursed all my mistakes and regretted going to forex trading which I believed it was the online business for me.
My life was becoming difficult and unapproachable because of the bank loan which I already started receiving alerts to clear. I stayed mute with my phone off for a full week without talking to anyone.
I was worried how I will repay the loan while I was still jobless. In the meantime again, some ideas about crypto currencies and other online jobs started creeping into my mind but I was still hardened to believe that online business was possible to me.
Later in some few weeks, I met a friend of mine whom we had studied in the same university and I just realized she that was a forex expert. She was doing forex trading very well with daily income and I couldn’t believe it.
I realized that most of them are making daily incomes and I started rethinking again if forex trading can be possible to anyone with understanding of market dynamics and risk management.
I share with her my predicaments in forex and she seemed very concerned about it. She had a good knowledge and understanding in forex which she whole heartedly shared with me.
She pointed out my mistakes and alerted me next time to ensure that I first get a combination of basic knowledge, skill, strategy, and discipline.
Here I was given some important tips for successful forex traders which I didn’t want to keep it as a secret but share with others;
1. Learning the Basics
Understand how the Forex market works, including currency pairs, market participants, and trading sessions. Study advanced trading strategies and technical analysis methods such as Fibonacci retracement, moving averages, and MACD.
2. Choose a Reliable Broker
Select a regulated and reputable Forex broker. Look for brokers with low spreads, good customer service, and reliable trading platforms.
3. Develop a Trading Plan
Set clear, achievable goals for your trading activities. Determine your risk tolerance and set rules for risk management, such as stop-loss and take-profit levels.
Develop and stick to a trading strategy that suits your style, whether it’s day trading, swing trading, or long-term trading.
4. Use a Demo Account
Practice your strategies on a demo account before risking real money. This helps you refine your techniques and build confidence.
5. Always Stay Updated
Keep up with global economic news and events that can impact currency markets.
Use an economic calendar to track important data releases and central bank announcements.
6. Apply Technical and Fundamental Analysis
Technical Analysis is the use charts and technical indicators to identify trading opportunities. Fundamental Analysis is about understand the underlying economic factors that influence currency values, such as interest rates, inflation, and political stability.
7. Maintain Discipline
Stick to your trading plan and avoid emotional decision-making. Don’t chase losses or get greedy after a win.
8. Continuous Learning
Forex markets are constantly changing. Stay updated with new strategies, market trends, and trading technologies.
9. Utilize Technology
Consider using automated trading systems or trading signals to aid in decision-making. However, understand their limitations and risks.
10. Keep a Trading Journal
Record all your trades, including the rationale behind each trade, the outcome, and any lessons learned. This helps you improve your trading strategy over time.
N/B: Never forget, Forex trading involves significant risks, and it’s possible to lose more than your initial investment.
It’s crucial to approach it with a well-thought-out strategy and the willingness to continually learn and adapt.