When a regular Western person thinks about Forex trading – it reminds them of The Wolf of Wall Street. Angry people are shouting into their phones demanding to sell everything right now, nerdy guys pouring over the sheets of data or news headers from around the world and many other cliches. For people in less developed countries, Forex trading means a scam, plain and simple. They also might think of fake software showing bogus graphs, shifty sales operators saying that a three-week withdrawal delay is a regular thing, and pitying glances from everyone who knows that they’re trading on Forex.
Forex can be many of those things, but if you’re patient and playing smart – you can avoid the negative experience and develop a basic understanding of the market in no time. Only after that – can you decide on investing something more than a pocket change. Here’s a detailed guide for beginner Forex traders if you’re up for a long read, but if you need a quick summary, we’re here to help.
Beginner Trader’s Biggest Mistakes And How To Avoid Them
Many people know that education is primarily about enhancing students’ ability to learn and understand information. If you know how to learn – you won’t have any problems learning something new. That’s your goal with Forex trading – to let your every action, even an unsuccessful one, be something to learn from. And making a devastating mistake right from the start won’t do you good. So, we’ve made a list of basic mistakes you should avoid if you want to make your first steps in Forex trading easy and stressless.
- Pick your broker carefully. If your country of residence provides comprehensive Forex trading legislation and a regulatory body for brokers – make sure that you pick the one that complies with all the rules and has a license. It’s your responsibility to check every detail before depositing your money, including whether or not it’s legal to trade Forex in your country. If it’s not and you somehow managed to make a deposit and earn some money – you’ll have trouble withdrawing it. The same goes for the payment methods. Make sure that the broker provides both deposits and withdrawals through your preferred payment system.
- Give yourself a proper time to prepare for the actual trading activity. If you’re a beginner – you don’t need a regular account because it will only make you lose more. Demo and cent accounts of all sorts are what you need, even if someone’s trying to upsell you something else.
- Overconfidence is not your friend. During your first months of Forex trading, your profits are going to be negligent, if any at all. That’s a normal thing for a beginner, and you should not try to diminish it by increasing your leverage. That’s what your broker needs, but you’re earning money for yourself, not for your broker.
- Don’t buy courses. If a person knows how to get rich by trading – they won’t teach others for only a portion of capital that they could’ve earned by themselves. Nowadays, millions of websites and forums offer extensive guides and articles on every aspect of Forex trading. Most reliable brokers have dozens of articles on their websites, explaining everything from basic Forex glossary to complex tools for analysis, data gathering, etc.
These are not all the mistakes one can make during their first days and weeks in trading, but avoiding these will help. You’re a few steps away from buying your first currency pair, so put a little more effort into it, and get your well-deserved profits!