When you think about the forex market you realize how economically stable it is, as it spans across the entire world and brings in about four trillion dollars’ worth every single day (that number being the average daily trading volume). As a result, the forex is the largest market pertaining to financial processes that we’ve ever seen (and that we will probably ever see in our lives). The popularity of this particular market is pretty obvious, and traders from all sorts of different backgrounds have taken it upon themselves to work their way into it.
It’s one of the easiest things to get into, and that’s exactly why trading forex is one of the most popular financial past times ever. The costs to get started when it comes to trading forex are rather affordable, and we’ve decided that due to its popularity it was only right to go through 10 different ways to help you keep your money (while trading forex).
There aren’t any online courses out there that are going to guarantee you a successful venture when it comes to trading, but there was ways to learn how to keep your head above the water. Losing money is the last thing you want to be doing when it comes to trading forex, and hopefully these 10 tips will help you keep (and even profit) from your endeavors.
1. Do Your Due Diligence – Learn the Ropes before You Trade
Learning the ropes when it comes to trading forex is one of the most important parts to being successful with it. Most of the time the most efficient way to learn is to just start making trades, but there are a bunch of resources online that can provide you with useful information regarding the topic. There are tons of factors that come into, things like the geological and economic factors regarding your trade can come into play, so learning how to adjust accordingly is a crucial component to the entire process. Developing your very own trading plan is always a good idea in this regard, and soaking up as much information as possible before making the first trade is ideal.
2. Find Yourself a Trustworthy Broker
Trading with brokers that haven’t built up a reputation is never a good idea, so when you’re looking into forex trading make sure you’re working with a high-quality forex broker that’s been around for a while. Worrying about deposits and other things like that should never take place when you’re trading forex, so you should only look for brokers that are part of the NFA (National Futures Association), as well as a broker firm that is registered with the well-renowned U.S. Commodity Futures Trading Commission (usually referred to as the CFTC).
3. Trade While Using a “Practice Account”
Before you start to make forex trades on your “main account” it’s recommended to make prevalent use of a practice account. When it comes to trading platforms almost every single one that you use will have a practice account implemented, and these are usually referred to as demos. The accounts let new traders make “fake trades” without any funds, and then it allows them to see the repercussions of their trades (whether they be good or bad).
4. Make Sure Your Charts Are Tidy!
There are tons of tools available to you to analyze the competition (as well as anything else that can be monitored by the trading platform). Although they are useful you need to be aware as to which ones are currently working, and when you find them you should keep them while cleaning out other useless statistics. Keeping a chart tidy will help you trade with ease as you move along, and using two different types of tools that analyze the same thing is just foolish.
5. Keep Yourself Protected
Trading with your forex account is a foolproof way to gain a profit, but keeping that account secure is an entirely different story. Knowing how to accept a deficit in your revenue (or even your profit) is something a quality forex trader needs to be able to deal with, so make sure you have a loss threshold put into place. It’s always nice to know when to cut your losses, and when you don’t know your limits you could find yourself in the position of constantly losing money (this usually happens when people keep making bad trades even after they’ve suffered a loss in the market).