Many of today’s successful traders started from zero and reached the sky. Others, many more of them, failed. The difference is not only about luck: in CFD Forex, knowledge matters a lot. So, where should one look for assistance in their rising trading career? There are places, more of them than you know, but not all are made equal.
Who’s to Back Your Success?
Hardly will anyone lend (or just give) you money to start this career. Even if you have some rich relatives, they know better than that (or at least they say so). So the money to invest should be your own; hope you have some extra income for investments.
Knowledge is the key, though. Two or three successful deals (or bets, if you view trading as a sort of gambling) will double or triple your money or bring even more. But if you want to continue just as successfully, you might need more knowledge than money. And that’s where various courses, libraries, videos come to mind. No need to go far: as you register on a broker site, they offer you a lot of articles, videos, and even a demo platform.
What Knowledge to Absorb?
First of all, you should know how trading works. The main principle is simple: buy low, sell high. But there is a sophisticated art of predicting the right moments. In addition, trading often (almost always when online) operates with derivatives instead of real assets. It makes online trading comfortable, but it requires specific knowledge.
So, what to do?
- Read Wikipedia and books for dummies. Most terms, definitions, schemes, and stuff (as well as trading itself) are way older than we think. You probably acknowledge that currency exchange was practiced in ancient times (recollect how Jesus threw money changers out of the temple). But did you know, for example, that candlestick charts are as old as the XVIII century? Or that derivative contracts appeared way before the Internet?
- Read popular books and watch videos on the basics of trading. Even if you find a certain source too simple, it only means they explain the subject well. There are YouTubers and even Instagrammers that lecture on this. Only a successful trader deserves your trust. But even speeches delivered by these should be taken with a pinch of salt because of survivorship bias.
- Everything Forex is derivative from the real currency exchange market. Learn everything about Jamaica Accords that regulate today’s currency market worldwide.
- Learn the slang. What does a “base currency” mean? And a “quote currency”? What’s the difference between a pip and a pipette? What do you call “spread”? Without knowing the lingo, you are as good as illiterate.
- Practice with a demo account for several weeks. While you are practicing, learn the basic mechanics. But psychologically, risking virtual money is not the same as risking your own real funds. So after learning the ABC of trading, invest some money into a real micro account and learn to handle it.
- Don’t be afraid to lose all you have invested in this smaller account. Prepare yourself that it’s just a cost for your education. This means you shouldn’t invest all you have left; luckily, most platforms allow for really low bids.
- Learn about reading signals. It requires some data thinking: signals are not visual. They are rather certain values and rates.
- Learn to predict trends by general news. The currency exchange rate dynamics, in fact, indicates how much citizens of a certain country trust their own economy and that of the other country or union – so as their trust changes, so does the exchange rate. Political and economical situation in various country affects this, and in our online time does it quicker than it seems.
Reading theory, definitions, learning examples, and watching videos is great. But the demo is probably the most precious interactive tool you have. You can
How Do You Know Who to Trust?
While there are many contradictive approaches to trading, the one offered by the broker you choose is supposed to be the most relevant. There are always relevant examples that operate with the same interfaces, assets, terms, and so on that you are supposed to use here. Interactive demos often come with explanations and hints you can access.
The question is how to find a trustable broker, then. It may be a serious question because unreliable and even fraudulent brokers have become a real calamity for the industry, causing a ban in several countries and a worldwide wave of mistrust. So, investigate before you invest.
The best recommendation a broker can receive is the experience of someone you know in person. They should be able not only to earn, but also to withdraw their money when they want, according to the user agreement. You should also check whether the broker operates legitimately in your country and is subject to its laws. Another must is 24/7 phone support and other ways to connect it outside the site or the app. Well, it concerns all the sites that offer you work or business online, not only trading.
Shrink to Expand
It’s more than knowledge and financial investments that it takes to succeed at trading. There must be your willingness to take risks, durability under failures, responsibility for your actions, resistance to delusions of grandeur after the success comes, and overcoming fears that may stand in your way. Luckily, there is therapy to undergo to become the type of a person it takes. It may take months and even years, but that’s another illustration of gradual progress.
It might be the most useful of all the recommendations here. Even if you end up elsewhere instead of trading, having chosen another career, unlocking the best in you and overcoming the worst will inevitably pay.
Trade and Give
Thank you for reading this! To our mind, living among conscientious people is itself a reward. So we’d like you to spread the knowledge you just received. Share it on your Facebook or Twitter page to keep your friends aware. You can also add something we might have skipped or ask a question in the comments. We’re always up for a good discussion!