When an expert can teach you how to trade Forex, it is not an opportunity to miss. Experienced traders can provide priceless insights. They know all the common pitfalls and tricks to boost returns. However, what if a mentor is unavailable? Should you still get involved? Definitely. Here is why.
Diverse Learning Opportunities
Forex is not taught in a classroom. Traders use articles, ebooks, tutorials, and other aids from experts. Today, there is an abundance of educational content online. In Nigeria, you may see advertisements for trading courses. While local training firms exist, they are neither reliable nor necessary. After all, the Internet has everything you need.
You can rest assured that this is not something you will not need to spend significant time to learn all the basics. However, you should know that there are some things that you should learn before you step into the world of forex trading. Plus, it should be said that entering forex trading on your own is not an as good idea as it may sound. So, you need to be careful when it comes to choosing a partner that will provide you all the necessary support that you really need.
If you are truly willing to learn the art of trading, you do not need a partner. After all, Forex is not teamwork. Traders exchange information on forums and dedicated online communities, but their personal results are individual. Register an account with a global broker – these companies have the best resources and they guarantee 24/7 assistance. Their websites are packed with valuable guides.
Trading platforms are easy to install, and they work on both desktop and mobile devices. With a reliable FXTM’s MetaTrader 5 broker, you gain access to state-of-the-art tools. The convenient demo mode allows you to explore the software free of charge and with no risks involved. It should be pointed out that this is not something that you should be afraid of. You can learn all the basic things pretty quickly. Thankfully, there are more than a dozen apps that could really help you with your task of becoming a proper forex trader.
Every newbie is advised to begin in this simulated mode and practice as much as possible. Learn how to open and close positions, analyze charts, and adjust risk management features. Continue until you are absolutely confident in your abilities. Next, switch to the live trading and make your first deposit. Even though it may sound like the thing that it shouldn’t be said, we would like to say that obtaining the necessary knowledge is an absolute must. You need to be careful about learning all that’s important and what can help you on your quest.
Key Personal Qualities
Self-education is no piece of cake, you should know this. In online trading, the profit potential is sure to keep you motivated. A lot depends on your mentality, money management skills, and attitude to risk. This is something that we can say for almost all kinds of learning and obtaining knowledge. There is no set of steps for surefire results and no magic formula that will make you a successful trader. It all depends on your hard work. However, the right mindset will increase your chances of success. Skilled traders share the same character traits:
- organization skills;
- critical thinking;
- emotional control;
- quick reaction;
- attention to detail;
Control Your Feelings
Emotions are your worst enemy. Financial decisions made on the spur of the moment are rarely wise. When markets panic, investors fall victim to the same old fallacies. For instance, they rush to sell off assets that are falling for fear of bigger losses. However, all markets eventually return to their average levels. Impulsive short-selling may translate into missed opportunities later on. Rushing with making a decision is something that could cost you dearly if you are not careful.
Hence, do not be surprised by articles that recommend you meditate before a trading day. Physical or mental exercise will sharpen your focus. Every single decision must be rational, whatever the circumstances. As we’ve already said, there are chances that you are going to be annoyed with something. But it doesn’t mean that you need to go ahead and make a mistake that could cost you dearly.
Resilience refers to your ability to accept losses and learn from them. Do not expect to make a profit from every trade: sometimes, even the most talented players fail. Losses are essential for improvement. They highlight weaknesses, so clients can adjust their strategies for better results. This is something that you need to be prepared for. This is something that happens pretty often and nobody’s immune to it.
Keep a Trading Journal
To speed up your learning process, keep records of all trades. A journal is useful for newbies and experts alike. You can think about it as some kind of journal which can help you with tracking all of the successes that you’ve made along the way. Furthermore, this can be a significant source of motivation that can provide enough will to complete all of the tasks in the best possible way. It helps to see what works for you and what doesn’t. That way you are going to see what situation was handled pretty good and which ones expect from you to be at a higher level of professionalism. At the same time, you can think about it as some sort of feedback from yourself. Regular reviews of performance will help to advance faster. As there is no universal recipe, different strategies suit different players. Now, we are going to narrow down some key points for each position:
- entry and exit points,
- any factors that influenced the trade,
- your feelings about it.
Leverage is a double-edged tool, so it must be used with prudence. Higher potential returns are always accompanied by higher potential risks. When trading on margin, you can open positions for $100,000 having just $1,000 in your account (with 1:100 ratio). The broker boosts your purchasing power for better results, and it is tempting. However, losses may also be significant.
Conclusion: Trading Alone
Online trading is not teamwork. Having an experienced mentor will accelerate learning, but it is not mandatory. Thanks to the wealth of educational material online, self-education is feasible. Internet-assisted trading unites 15+ million people around the world. Over the decades, this vibrant community has developed proven tips for success. As long as you develop the right mentality, mastering trades on your own is perfectly doable.
You can be sure that a high percentage of people who are now experts were self-thought. Even though it is always helpful to have a mentor that will provide some good answers to the question in hand, maybe it is a good choice to learn from your experiences, both good and bad. However, if you ask us, we would highly recommend you find an expert who will serve as your mentor in these situations.
Importantly, do not treat Forex like a gamble. This is something that you should never do since this is not the same concept you can see with gambling. We can see that some people actually do that, but we wouldn’t recommend it. Success relies on consistency, not randomness. Neophytes have ample opportunities to learn from experienced professionals. Explore ready-made strategies for analysis and trading and try them out in practice. Review and adjust your methods if necessary: on the global exchange, learning never stops.