After knowing the two previous tips to get through you first year as a forex trader, let’s continue our discussion about the next three.
Check out 5 tips that can help you survive in the first year as a forex trader:
Managing Expectations
The general mindset about forex trading lately is that one can get a lot of money in a short amount of time. This is true, but only if done carefully and correctly. Many forex traders have very unrealistic expectations because of the success stories of others they read online or in magazines. However, they fail to realize that it is a small minority. The hard fact is that most traders end up losing before they start making a profit.
Learn from Previous Mistakes
As stated, record all trades that have been made regardless of profit or loss. If there are more disadvantages than profits, then you might do something wrong. Then, it would be better to pause and take a step back. Analyze your trading in detail, and find out what’s wrong.
Reviewing is as important as actual trading itself because it makes you ready for future trading. Analyzing past mistakes also allows you to learn from them and not make the same mistakes in the future. According to Trade Your Edge, the power of consistent trade reviews is the ability to close the gap in the right direction.
For example, being an effective trader is about getting the most out of every trade. If a trade exits prematurely, a loss will be made in the form of a potential profit. Analyzing previous trades that come out prematurely makes it possible to better understand and observe missed signs.
Don’t Give Up
It is normal to sustain losses at the start of trading. That is part of the experience, as some say, your fingers will feel hot. Because you will feel that reality is all compared to trading on a demo account.
Losses are part of trading. Do not be discouraged just because of losses. Having lots of losses doesn’t mean that you have to leave your trading system and stop following your watchlist because it might be a bad time in the market. You should always be watching and be ready to enter the market again to the right of time.
To be a successful forex trader, you must have strong confidence. This is a difficult journey, but it is worth it at the end of the day when profits are made. This is also an interesting opportunity for self-discovery and examination of your character. Good luck on your forex trading journey, traders!
Read more: Avoid These 4 Trading Habits For Your Successful Trading