Those who are new to the world of forex often carry the misconception that it’s a game of luck rather than skill. Although this makes it infinitely easier to pass off losses as unavoidable, this is not actually the case. Although good fortune certainly has its part to play, the primary determiners of success in the currency markets are talent, time and effort. This is very good news for investors, as it means that it’s entirely possible to tip the scales in your favour and set yourself ahead of the game. If you’re looking for some top tips on how to do it, then here are three important rules to trade by…
Tip One: Choose the Right Broker
One of the key factors behind a successful forex strategy is, inarguably, choosing the right broker. This is a lesson that beginners, in particular, ought to heed. For the novice trader, there is most definitely a right way and a wrong way to do things. Execution-only brokers ought to be avoided at all costs, as being left to your own devices without the requisite experience is the very worst thing you can do. If you have the money to fund them, discretionary brokers offer you the best chances of forex success, although advisory services are also a good choice for those who want to learn on the job, offering an expert hand to guide your decisions.
Tip Two: View Losses as a Learning Curve
Once you have a good broker behind you, the next step is to learn that losses are inevitable, and perhaps even useful. It’s a really good idea to keep detailed accounts of all of the trades you make, and particular focus should be given to those where you lose money. Take the time each week to sit down, study your mistakes and try to identify where you went wrong. Once you understand how to avoid repeating such an outcome, your profits should begin to soar.
Tip Three: Perform Weekend Analysis
Like any pursuit that relies on skill, those who enjoy the greatest forex success are often the people who work the hardest. It’s important to do your homework, and going above and beyond the call of duty is one of the best ways to set yourself ahead of the game. Weekend analysis is a wonderful tool for helping you. Although the markets are closed on Saturday and Sunday, this two-day period offers the perfect opportunity to sit down, study your data and statistics for any emerging patterns, and ensure that you’re ready to roll when Monday comes around.
Trade today with a broker like OANDA and open the cover on your very own success story.