Getting Started In Forex – The Simple Blueprint For Forex Success By Thad B Platinum Quality Author
When you’re getting started in Forex trading, the sheer amount of information available out there can be overwhelming. No doubt you’ve gone to the bookstores and popular Forex websites looking for the answers, but chances are you’ve found more confusion and hype everywhere you turn. Well, in my experience, trading Forex does not have to be complicated at all! In fact, trading Forex can be easy if you follow a simple blueprint for Forex success. By the end of this article, you’ll know what to do to get yourself on the road to progress as you learn how to trade Forex.
Having Enough Capital When You’re Getting Started In Forex Trading
As much as the so called Forex experts try to convolute the field of Forex trading, the reality is that it can be as simple or as complicated as you make it out to be. Sure, you can go out and learn every single chart pattern and do an in depth study of all the technical and fundamental indicators out there, but we’re all in this to make some money, right? So let’s leave the studying for the Forex ‘expert’ types and be laser focused about what we want to achieve.
Successful trading really boils down to 3 things. Firstly, you must have adequate capital to trade. When you’re getting started in Forex, you’ll want to have at least ,000 to ,000 that you’re willing to invest as trading capital. Having a good starting stake will prevent you from over leveraging yourself, while delivering good levels of profit that will keep you interested while you learn about Forex trading. It’s a proven fact that if you don’t have a level of capital in your trading account that is enough to get you serious about your trading, you’ll tend to gamble and take unnecessary risks with it because it’s ‘money you can afford to lose’. These losses quickly add up however, and you’ll end up learning how to trade Forex with all kinds of bad habits that are hard to unlearn later on.
Having The Right Mindset When You’re Getting Started In Forex Trading
Secondly, you need to have the right mindset towards trading Forex. The most important thing to understand when you’re getting started in Forex is that you’re in it for the long run, not to nab some quick profits and become an overnight millionaire. Bear in mind that you still have a lot to learn about trading Forex, and anything that you earn in the first 6 months to a year is a bonus. Your priority should be to keep your trading capital safe while you learn how to trade Forex, and you can do that by risking only 2-4 percent of your capital on each trade.
Risking 2-4 percent of your trading capital may not be what you are used to, but it is the optimum risk that puts your profits at the maximum possible level while reducing your risk of blowing up your trading account to zero. When you’re getting started in Forex trading, it’s important to realize the value of preserving your capital. For every dollar you lose in your trading account, the money you have left will have to work even harder to make it back. For example, if you lose 20% of your account, you will need to make 25% to get back to breakeven, and if you lose 50% of your account, you will need to make 100% to make it back.
Have A Proven, Profitable System When You’re Getting Started In Forex Trading
Most people use a trading system without applying the first two principles above, and that’s why most people end up losing money, even with a profitable Forex trading system. If you’re able to prepare yourself with adequate capital and a good attitude towards risk management, then your Forex trading will be much more profitable than the average trader getting started in Forex trading. If you don’t have a profitable Forex trading system at your disposal, then my advice would be to buy one with a proven track record of backtesting and live testing, and to verify those results with your own demo account testing before trading it with real funds.
Successful trading can be simple to achieve, even when you’re getting started in Forex trading. All you need is adequate capital to start out with, a strong emphasis towards capital protection and risk management, and a proven, profitable Forex trading system. That’s my simple blueprint for success while getting started in Forex trading.
Thad B. is a Professional Trading Systems Developer who has developed and managed dozens of profitable trading systems over the years for a private hedge fund. Forex trading systems are his passion and expertise, and he has a wealth of helpful resources available for any serious Forex systems trader.
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