A Trader's First Steps
Some view Forex trading as one of the best means of securing financial gains, while others feel that it is extremely difficult to navigate and ultimately not worth the time and effort. How is it that such divergent views exist? Can these views both be correct or are they mutually exclusive?
The answer to this question is deceptively easy: While Forex trading can seem daunting and investors may incur heavy losses, most of the risks can be mitigated through careful planning, persistence and research.
Success in Forex hinges on having a solid, personalized trading plan and the necessary knowledge and skills. Without these, traders are bound to encounter losses and in some cases, these losses can be extreme. Education and practice are absolutely necessary, as they provide the groundwork for making informed decisions when dealing with volatile financial markets.
Unfortunately, many beginners overlook the importance of training with demo accounts and instead jump straight into trading with real money. It's crucial to learn the trading terminal and grasp the terminology before trading in order to avoid the most common investment pitfalls
Of course, studying trading shouldn’t only be restricted to learning profitable strategies. In fact, it can be extremely beneficial to learn from mistakes; both one’s own and those of others. This is where demo accounts truly shine; no matter what mistakes you make, you can learn from them without being blinded by emotions wrought of massive financial losses.
In the end, traders must make sure they can consistently make profitable trades, not through guesswork, but with clear, sustainable personalized plans, which take into account as many contingencies as possible.
Although training can be gruelling and time-consuming, discipline, clear goals, actionable plans, and patience are what truly separate professionals from beginners.