Everyone would like some extra cash and trading can give you exactly that or even more if you are ready to put in the hours and be there in the long run. It might sound overwhelming, but in reality, it isn’t. If you thought it’s something you can earn overnight, sorry, but that’s what scammers usually promise you, so better skip that part. We want to create circumstances based on knowledge, following what’s going on in the world and learning from your broker (aka market expert). It makes a good base for you to accumulate earnings over time and advance as a trader.
Check your goals
The first thing you want to do (we know trading attracts you because of money, what else?), it to check what you would do if you accumulated a lot of money by trading. It can be a great thing to navigate you towards building a good trading plan because a significant percentage of traders fail without a goal. It sounds cliche, but it’s quite simple – you can’t hit a target if you cannot see it. Even if you’re in it for fun or see what the hype is all about – create a goal. Even if it’s “I want to buy _____________ (insert the most superficial thing here)”. It will create a friction-based momentum on where you are and where you want to be. It will be easier to calculate your moves and not act out of impulse when you know something is at stake. You will be more careful, and observe the forex market with greater insight and willingness to learn.
Finding a trustworthy company and a broker
Since Forex is decentralized, you need a third-party so you can trade on the market. It can be beneficial having an expert by your side, whether you are a beginner or an advanced trader. Many are afraid of scams, but it can be avoided by looking up for the right source. Regulator websites and broker reviews are the main and only thing you should look for as a base for making sure you are working with the right people. Regulator websites have a list of regulated and licenced companies, so it’s easy to check if a company you contacted or vice versa is a scam. It’s the best to check broker- reviews for brokers because they can tell you what their primary expertise is and the comments also tell you a lot. If you can’t find almost anything about the broker, then it’s most probably a scam.
Build a good working relationship
A good forex broker will give you the right support if you are transparent and don’t tend to brag with what you don’t have. It is not the place for it, nor it should be. You want to trade to gain more, by playing smart and having someone by your side who will help you determine which path you should take first. Talk to them about your goals and how much you can invest without going overboard. Every good broker will tell you to start small so that you can test out the market. Even if you lose, you won’t lose too much, and this way you will learn a lot better on how to manage your money and create a plan if something goes “wrong”.
Choose what interests you
Are you interested in cryptos or stocks of a specific company? It is essential to know what sparks your interest, so you don’t get bored too quickly, and it will determine your trading strategy. Forex is excellent since it operates 24/7, but you should see your primary focus and discuss your broker’s possibilities. Maybe you are more comfortable with a long-term strategy, or short-buy is better. You will see that once you’ve sorted out what interests you the most as a forex trader.
Remember, learning doesn’t stop once you figure out how to read charts and the time of the day you are willing to sit down and check what’s going on the forex market. There are plenty of books, podcasts, and even Twitter accounts that can help you daily and even change your opinion on specific trading strategies. As you progress as a forex trader, so will your strategy and how you want to manage your investments. Keep learning, be patient, and don’t do too much at once!