The beginning is the most challenging stage of anything. Suppose you have studied many theories on Playing Cricket, and now you think that you are ready to play Cricket. But from wearing jerseys to step on the ground, there may arise some questions in your mind. To complete your lesson about Cricket and to be a real good player you have to play several matches, have to go through injuries and losses. And yes, you may win sometimes, but that is because of your luck, not your skill.
Forex is not Cricket neither a game. Here winning chances are far less than that of losing. So, to be a winner, you need to set goals and follow them.
Do Not Make Goals for the Result, But the Process
Most beginners make mistakes while setting a goal. They usually aim at numbers. “I have to earn 3000 dollars this month” or “I will make 1% profit first.” As a beginner, if you set goals of numbers, you are digging your own grave.
In school, your teacher or parents must have told you, “Study for learning, not for the grades.” Why did they ask you to do so? If you learn, you will automatically achieve a high grade. But if you study only to make a good result, your learning will not be complete. And incomplete knowledge may suffer you in the future.
You should follow the above lesson here in the FX. Never set goals to earn a profit. Instead, if your goal is about the process, soon, you can hopefully be successful.
To develop a successful process to trade in Forex, follow the goals written below.
Always Hold a Plan
Make sure that you have a plan before starting. The ‘plan’ is the very first requirement to start anything, especially a business. Wait for a second, is Forex is a business? Yes, it’s a business, and this is the only business where you buy and sell the money with the money. So research the market, if it is needed, use the help of indicators, predict the coming market structure, manage the source to compensate the loss, and then create a complete plan to start. Only a planned approach can bring you success.
Learn When Not to Trade
If your goal is to earn a profit, your instinct may push you to begin even after having no opportunity to win. Sometimes not taking any trades is a good decision since the market is not always suitable for trading. After analyzing the trend, market structure, and future cycle, you have to decide whether you trade or not. If you feel the market situation does not suit you, stop trading. Unless you feel comfortable, you should take any trades in your ETF trading account. Prepare yourself properly before you deal with the real market.
After entering the market, most of the beginners become impatient. They always want to do something in the market. So it will be best if you control yourself. If required, go and watch TV but do not make any foolish move. Be relax, wait for the perfect time to start.
Keep Your Strategy Simple
If you research a lot and create a complex strategy, it will not do any good. Many believe that the more complex the strategy will be, the more the chances of winning will increase. But it’s wrong.
Do not think a lot, over the various thing. Be focused on your target, create a straightforward plan and adhere to it. If you need, you can bring a little bit of change to your existing trading system. But throwing a plan and making a new one will not help you that much. In the FX market, the most challenging thing is to focus on one strategy. So make your strategy as simple as you can.
To be a good trader from the very beginning, do not move without a plan, do not trade when there is no opportunity, and do not make a crazy and complex strategy. Hopefully, you will be successful.