Five Tips For Becoming a Successful Forex Trader

Some say that forex trading is one of those things that can be learned in minutes but takes years to truly master. For any gamblers, that could ring alarm bells, as the same has famously been said of Texas Hold ‘em, the most popular variation of poker.

Is it a fair comparison? The array of websites, apps and platforms that can make a trader of anyone in a matter of seconds have certainly led to a fair few tales of horror, with unwary amateurs playing the markets and losing, much like a keen but naïve card player falling victim to an old-style hustler.

Get beyond the sensationalism, however, and the truth of forex trading is neither as dramatic nor as dangerous, provided you know what you are doing. And that is the key proviso. Making a success of forex trading does not require decades of experience, but it would be madness to jump in at the deep end without knowing what you are doing. Here are five tips to playing the currency exchange markets and coming out a winner.

1) Do your research

Forex professionals are seen as a specialist bunch with good reason – the topic is a complex one. That’s not to say it is impossible to understand, but you need some basic mathematical skills and a clear understanding of how the market operates. Read plenty of articles and even seek out a few courses and tutorials – there are plenty available online and most won’t cost you a penny.

2) Choose the right broker

Your broker is the conduit between you and the multi trillion dollar currency markets. There are plenty of good ones out there, and also a few charlatans, so take your time and use an independent resource like to get a clear view of how they all stack up.

3) Don’t hurry

It is enormously tempting to get that first trade underway, but remember what we said earlier about jumping in at the deep end. Most trading apps will come with some form of practice account. Use it to make the inevitable errors that every new trader has to make. That way, you learn from the experience without losing any money.

4) Track your performance

You won’t devise the perfect strategy overnight. As you grow in experience, you will learn to take advantage of new tools and indicators, and they will all contribute to making you a more successful trader. Keep a detailed record of each and every trade, and critically evaluate how it went. Doing more of what works and less of what doesn’t is what it’s all about.

5) Use your head

Until you start, you won’t realize how easy it is to get caught up in the emotion of trading. That’s fine to a certain extent, but beware of the signs that your heart is taking control of your actions over your head. Whatever anyone might say, forex trading is not a game of cards, and you need to always approach it from an objective and business-like perspective.