The Forex Market, also known as the ‘Foreign exchange’, ‘FX’ or ‘Foreign currency’ market is the marketplace where businesses, private investors, corporations and banks come to buy or sell currencies. With a daily turnover that exceeds $5 trillion, it is one of the largest, most liquid decentralized markets in the world. Over the past few years, with the incredible development of technology, forex trading in Nigeria became extremely popular. According to a recent report released by Broker Notes, there are 9.6 million traders worldwide. Basically, 1 out of 781 people on the planet trade online. But how many of them actually succeed? What does it take to be a successful trader? Here are some fundamental rules that can build your first step towards success and profit.
Find the right trading strategy for your level of experience
Are you a beginner or an experienced trader? Do you prefer holding your trades for a few minutes, days or even months? It is crucial to understand your needs and make the trading process a comfortable one! In this way you’ll build a trading plan tailored to your desires and this discipline will turn into the most efficient trading strategy. Why is it so important to find a suitable trading strategy? The forex trading process involves two activities: buying and selling currencies – you buy a currency (called the quote currency) by selling another currency (called the base currency). Because this market is so volatile and it never sleeps, every decision you make, every order you place depends on your experience and speculations. It’s your discipline that can minimize the risks and maximize the success.
Find the best online forex broker
The broker you choose is your trustworthy ally and must act like a mentor through everything it offers. From the trading platform and account types to the customer support services and trading tools, everything needs to make you feel like it’s was all made for you. A professional online broker knows what any trader needs and offers it, like the MT4 interface or multiple account types with reasonable minimum deposits and a plethora of essential instruments. For example, s2trade.com is a good example of what any professional brokerage firm should be like. Apart from the MT4 platform, appealing account features, a discrete customer support team and comprehensive set of over 72 trading tools, they offer an outstanding educational center for their traders and they actually encourage and help them to build a professional trading portfolio. Find the best forex broker, never settle for less, because that will only hold you back from being successful!
Losses are just steps toward success
George Soros, one of the world’s most successful investors, once said: The worse a situation becomes, the less it takes to turn it around, and the bigger the upside. In forex trading, profit and success come after many years of hard work and losses are part of the process. There are a few ways you can diminish the risks until you will develop the right mindset, let’s talk about two of them!
Try to not be surprised and act impulsively when you have losses, because they most definitely happen because and for a reason. Forex trading is composed from a lot of variables and only by combining them correctly you gain profit. Sometimes you miss, even if you think the trade met all the right criteria. After a loss, don’t try to compensate by placing another trade. Control your emotions and take the time to understand what went wrong, read the chart patterns and try to learn from that experience. Over time you’ll acknowledge the importance of a trading strategy and everything will come naturally.
A golden rule in forex trading is to always use the stop-loss order! A stop-loss order is an order you place with your broker to sell the stock (or other securities) when it reaches a certain price. This feature helps limit your loss on a position in a security and it is extremely useful if, for example, you hold your trades for more than a few days.
Stay informed and updated about the Forex Market
As we already stated, the forex market never sleeps and neither do the factors that have an impact on it. To achieve success is crucial to make a hobby out of reading the news! All traders have at their disposal the same global news, the same political and economic events – the decision they make regarding their trades belongs only to them. Knowledge makes the difference in trading and it is definitely one ingredient of success.
All traders need to experience some losses before feeling the great taste of success. It all depends on you and the choices you make. Put your mind and knowledge into even your smallest acts and you will eventually succeed!