As we all know, Forex trading carries a high level risk. Therefore, it is not for the faint of heart nor for those who are easily controlled by their emotions.
But if you are really considering venturing in the Forex market to diversify your portfolio, you should fulfill the 3 criteria below:
You are patient
Before you start trading currencies, you’ll have to go through an awful lot. You will have to do some extensive reading about it, from its origin and history up to determining currency prices and exchange rate values. As what Arnold H. Glasgow said, “The key to everything is patience. You get the chicken by hatching the egg, not by smashing it.”
Your patience will always be tested. Creating a solid trading plan requires patience. Entering and exiting a trade at the right moment also requires patience.
If you don’t have patience in you, Forex trading is probably not for you.
You can afford to lose money
If you are serious about trading currencies, make sure that you are willing to lose your hard-earned money. Before you actually start making money, you will go through a series of losses. That’s a hard fact in the Forex world.
Experts always advise newcomers to only invest extra money that they could afford to lose. If you wish to pursue a trading career, keep this criterion in mind.
You can monitor the market closely
If you are too busy with other matters that you don’t have much time to monitor the market, Forex trading is not for you. Trading in the Forex market requires your attention to watch market movements. These movements affect currency rates, thus, they have a substantial impact on your trading. Don’t expect to thrive in this venture if you can’t find time to look at what’s happening in the market.
Also read: 3 Ways to Deal with Stress in Forex Trading