“Forex trading involves high-risk and you have the potential to lose more than your invested capital“. I am sure you have encountered this text if you are at least a little bit interested in financial markets. This general warning is often looked over by prospective traders with the belief that they are smarter than that, and that they won’t make the mistakes that lead to losses in trading.
Do you want to know how to really avoid those? It is not about the smarts; rather it’s about the mindset of the trader that defines the outcome. How? Well, for starters you should treat forex trading as any other business—you invest capital and you get returns.
And by investing capital, I don’t just mean the money you fund your account with; I also mean the time you put into evolving as a trader and gaining the experience that you will need to be successful in forex.
And to talk about the returns you get—believe us, it’s worth your investments. You can make a living, and a very good one for that matter, from trading, and you can do so in a manner that you get to be your own boss and reach your financial goals while effectively managing your time.
All the little things
If you have realized that you have to invest to get returns your natural first question will “OK, but invest in what exactly?”
To answer that let’s talk a bit about what you’ll need for trading. At first it looks like a very simple task; you look at the chart, draw some lines (or not), decide where the market will go, and you cash in as the pair you trade reaches the target price. Although the process is something like that but if you think about it, the devil is in the details, as they say.
What chart to look at? What indicators to use and what part of technical analysis does really work? On what kind of device and platform should you trade? Which broker should you choose? What lines to draw exactly? Or even where to transfer the profit?
These are questions that you should know the answer to, optimally before you start trading seriously. Being prepared increases your chances immensely.
The good news is that you have come to the right place if you need advice on any of those questions. We at FXUniversal have the experience and the knowledge to help you get started and be profitable from the beginning. Also, if you have already started trading but you have burnt yourself, at first, you can find the weaknesses in your approach or strategies and achieve better results consistently!
What everyone wants to know
One of the first things that everyone asks about forex, of course, is “How much money can I make with it?” The answer is that there is no practical limit to the amount that a trader can earn with trading! How is that possible? The market is HUGE, and by that, I mean hundreds of billions of Dollars every day. So if you are profitable this is the ultimate business to scale. Actually, you need almost the same equipment, strategies, and knowledge to make $100 or $100,000 a month. You just need to be profitable and have the psychological strength to deal with the growing size of your trades—not an easy feat!
The income you will initially earn depends on the capital you first start trading with but don’t worry you don’t have to commit a lot of funds for this. In fact, it’s better to start small until you get to know the market inside out and you will be able to trade without concentrating too much on the technical stuff.
But the time and the effort you put into trading have an amazing payout, the freedom to choose where you work from when you work, and how much you work!
How to start and how to plan your progress?
Trading is about constant evolution; you shouldn’t plan to start it full-time from the beginning. Trading on a demo account before risking your capital is a great start; this way you are able to choose an approach that suits you with the opportunity to get over the inevitable “rookie” mistakes that everyone commits.
And before that, you will need to find a broker to trade with. But, don’t forget that you don’t have to stick with a broker if you don’t like something. A demo account is great to familiarize with the broker too, to get to know the platform, the customer service, and the other small details that make a difference.
Here is a review of the steps you should take to start your forex business:
- Choose a cheap and reliable broker
- Practice on a demo account and find suitable and profitable strategies
- Start trading with small amounts until you are consistently profitable with “real” money
- Gradually increase trading size and the time you spend with trading
- Always evaluate your performance and try to improve your trading!
Get informed to stay ahead of the crowds
As you can already sense information is the key in this business. If you know what you are doing and where to turn to up-to-date guidance you will be set for success. We at FXUniversal are here to help all the way and provide you with the help you need to make a living with forex in 2016 and reach your financial goals!
Stay tuned for more and let us know what you think in the comment section!