Everyone wants to earn money by FOREX Trading, but it is not a safe battleground for beginners. The rules of the game are totally different, and one can’t be assured of success even if he or she has a prior experience of stock trading or commodity market. Here, huge money is at stake, and a small mistake may cost you a big loss.
However, don’t get disheartened by hearing this. When you go prepared, every challenge is manageable. Here are some great tips by seasoned FOREX players that will help you in achieving your financial goals. Read the rule carefully as you won’t get them in any of the training offered by vendors who provide online forex trading for beginners.
Manage your money well
Once you complete a few trading sessions in the forex trading practice account, you feel confident about it. However, always remember that when you start actual trading; you spend the real bucks and not the dummy ones. Hence, always trade in such a manner that you stay in the game longer. Use profound money management and have a rational attitude. Never put more than 5 percent of the trading capital per trade at risk. Also, make sure that you have enough working capital for at least 40 trades.
Never forget the stop loss level
Whether you trade in equity or FOREX, Stop Loss is the success mantra. Don’t think it is a timid way of playing. You should always remember that you are playing with your personal money and it is not a forex trading free demo account! Hence, don’t get carried away with the temptation of huge profits. If you lose money, you will lose from your pocket. Always put a stop loss to each trade. Get rid of it if it goes beyond your limits. Book the losses and move ahead. There is always better losing 10 bucks than 100.
Always remain on the practical grounds
Once you open forex trading account, don’t expect loads of money in your pockets. Though FOREX Trading is a faster way of making money, there is always some cooling time required. You shouldn’t expect that you will close the majority of the trades profitably and the working capital will grow manifold in just a few months. It is a slow and steady process where you have to think practically while setting revenue targets.
These three important tips will help in turning FOREX trading a profitable affair. Happy Trading!