5 Must Know Before You start Forex.
Forex trading is an acronym for (Foreign Exchange) it simply translate to buying other country currency with another. That is exchanging other currencies from others. Currency. Trading has been practiced since ancient times were gold is exchanged with other commodities. Forex is a market without a market place, a market without a boundary, 24/7 market. A market place without limits and boundary .
In the last century you will need millions of dollars in equity in other to trade the FOREX but, thanks to the internet some brokers give as low as 5 dollar account. But a 100 and above account is best for trading and it involves low risk and high profit.
But, now FOREX had evolve recently beyond currencies, it includes;
Commodities
Synthetic Indices
Stock and indices
Forex
Cryptocurrency
Forex trading has been a trending topic to many and, still being a hot cake in the finance sector and some mistook it as quick money making scheme . Most people come into forex trading to be the Elon Musk of their community or the Sheikh of Dubai. Which is unreal.
There are a lot of fantasy in Forex Trading that new traders develop, and in most cases those fantasies is what brings them into FOREX. What newbies failed to understand is the fact that if forex is a quick money scheme the field would have been saturated that no newbie will breathe.
“FOREX is a game of patience, resilience, hard-work, savings, discipline, knowledge, perseverance, curiosity and selflessness.”
5 MUST KNOW BEFORE GOING FOR FOREX (FOREX EXCHANGE).
(1) Knowledge
Deciding to trade is also a knowledge of it own kind it means you know what FOREX is and, had finished your primary assignment. What remains now is how to trade. By deciding to trade you must have finished researching how the thing goes.
Youtube do give knowledge but have it at your mind that your favorite Youtuber has a paid class too, that means what you see on youtube is just like the tip of an iceberg. You will be fed 100 junk before getting 10 goodie.
Paid FOREX classes are everywhere,I know of few forex classes which give lessons online/offline and also provide signals for traders at an affordable prize of as less as 50$. ( Comment if interested to link you up with your online couch). Other professional lesson charges as much as 1000’s of dollars and extra more for special classes. Learn about forex from a mentor before setting your self to freedom. Knowledge come with freedom, if you have it then,“Free at last, free at last, thank God Almighty we are free at last,” ~Nelson Mandela.
(2)Equity
Yes, of course every business need capital to start. Equity is the capital in FOREX. You can start trading with a 5 dollar account but such equity is a charity you are donating to your broker. FOREX mentors who use to say they can flip 50 cent account to a 50 dollar account are just hunting for your few dollars for you to pay them for a course, or to request for your account details so they can trade for you. And in the process few dollars will be used by a stranger to practice the market on a real account.
No body will make money for you, your are on your own.
As a beginner I will advice you not to use demo account for a very long time, Because Demo accounts are emotionless meaning, you feel nothing for a loss or win and you don’t think before placing a trade which is not the reality with a real account.
Save as much as you can and have patience in doing that, than to start trading with a low equity. Practically, if you blow ten 10 dollar account, is the-same thing as blowing a 100 dollar account. Is easy to break a stick but is harder to break a bundle of broom. My advice for you is to save, save and save, and it should not be less than 100$.
Is easy to break a stick but is harder to break a bundle of broom. ~ abubakarmuktar
(3) Discipline
“Discipline is the bridge between goals and accomplishment.” ~ Jim Rohn. If you want to succeed in FOREX discipline is the first commodity you are going to Adopt the moment you choice to start trading.
If you can’t respect the goals you set trading is not for you. Successful traders are disciplined traders. For a 100$ dollar account you target should not exceed 10$, and when you make your target exit even of the signal is winning. When you are carried away the market will be stormy and, before you know you will be sitting on a negative balance. Discipline your self with when, where, how , target and also time to trade.
(4) psychology
The-same event that makes you happy will make you sad too. It all depends on your state of mind. Never make trading decisions when you are sad, angry, over joyous, disturbed or any state of mind which is not the usual you. Always go into a trade when you feel most comfortable and mentally ready. Don’t opt into a trade you have doubt. If you have issues controlling the mind, try talking to an expert.
(5) Greed
If you want to have a successful career in trading, shun greed, run away from greed in-fact, delete the word greed from your register. Development is a slow and gradual process, it is an incremental effort. You have to go slow and steady in any other aspect of your life. And, extra careful for monetary issues such as, FOREX. You won’t make it over night, know this and have peace.
My trading story.
August 2019, I was a newbie in trading with my few dollars account that a mentor on youtube said you can flip it, just by following his tips on social media. I was a faithful follower always on his page and continuously blowing my trading account of 20 -30 dollars. When ever I loss I go back to his page and watch some motivational videos which I later realize it was all set up to keep subscribers active on his channel.
The last mistake that reset me to my initial settings was when my so called mentor message me that he has seen my losses and, that he will help me recover all my losses in few hours, that I should give him my logins. As a new trader my mentor is everything to me . I gave him my logins. After some hours my account is double, the ecstasy is beyond normal. I said to my self, my dream of riding my favorite car will soon come to reality. Thinking after a day of the doubling saga I be a millionaire.
Guess what?
The account is zero, Mr. Mentor has done it again. Let me cut the story short, my account was at 0.50 $ when I got access back, telling me to refund my account that, the market was not steady the last time.
Well, I refund my account but I follow the steps above from 1 down to 5. And now I can say I am a happy trader.
Thank you so, much for your time.