If you are eager to become a trader and stay in it for a long run (believe us, it’s the best way), here is a brief, but on-point guide to beginner Forex trading. Our advice is to study every point thoroughly, even if it might not look like much. These are starting points that will be the base of your success, and they will make the whole process a little less anxious. It’s essential to sort out your goals, strategy, find scam-free companies (it’s not that hard, we promise), and build a good relationship with your broker. If it sounds overwhelming, don’t push yourself to do it in a day. As a matter of fact, we don’t encourage that, since you can still get overwhelmed and make decisions that will be bad for your wallet. Let’s see what the absolute must-dos to start trading are. Most importantly, take it slowly. Go at your own pace.
What is your goal?
Yes, we realize you want to become a trader because you figured out many people you come across or see online are doing it, and it sounds like it brings money. It does, but what do you want that money for? Nobody said no to their paycheck, and there is a good purpose for it. Paying bills, buying food, essentially being able to live. If you want another source of income, it means your needs are bigger, or you have something you want to do, and your paycheck can’t cover. If it did, you wouldn’t have enough for a whole month. Maybe you can’t save enough money, so you see this as an opportunity for passive income. Think about it. What do you want to do with the extra money you will make? Is it for a scholarship for your child? Is it for your retirement fund? Do you want to feel more secure because you’ll have more money in your account? Whatever it is and even if it sounds silly to say it out loud, think about it and write it down as your primary goal. There is a study that shows almost 80% of traders fail because they don’t have one. And we want you to be in the 20% that stay on track.
Find companies that care
You’ve already heard too many times about bad experiences with brokerages and people being robbed out of their money. It is horrible, but those people usually don’t put too much thought into who they are giving their money to. If you want to start Forex trading, third-party is necessary, and you are investing your money into opening a trading account. Whatever the person says on the other side of the line, it is not required to invest that money right away. You can take your time to think about and even research the company, especially if they reached out to you first. There are regulator websites whose purpose is to compile a list of certified and licenced companies. Trust them, rather than going onto a random brokerage website, and think “yes” as soon as you see a stamp where it says “licenced”. The company is on the regulator list – great! You can work with them and be even slightly more secure about everything you do.
What about the broker?
Similar applies when you are searching for an expert in the field. You can choose a forex broker wisely, by checking out broker reviews and seeing “the obvious”. Comments will tell you the most, which means not reading only the first three ones. You will also see which platform they use and their speciality (cryptos, stocks, both). If they barely have any digital footprint on the internet, it is a bad sign, and move on from that. You deserve someone who you can trust and learn from them.
Having a solid trading plan is essential for a good and fruitful Forex trading experience. That’s why we mentioned your goals first. Having a goal will make it easier for you and your broker to create a trading plan, which is always essential. A plan is a must in the Forex industry if you are serious about accumulating income this way. You will discuss how much money you can currently invest, don’t go overboard, but rather inform them how much you can really afford to invest, and remember you will start small anyways in the beginning. Your goal is to learn and adapt to the trading environment and be on the spectrum’s negative side. As you grow as a trader, your trading plan will change as well, but it will be helpful to keep in mind why you are here in the first place. It will also keep you from making impulsive decisions because you will know how much you had to work on and what you want to get from it. Don’t skip these steps, and you will be a step ahead of everyone who chose not to think about these.