Should You Start Trading?

Should You Start Trading?

Should You Start Trading?

I get asked this almost weekly by folks learning about trading. “How do I get started?” “Should I start trading?” “What does it take to trade?”. Anyone who is new to the trading game has questions about what they should do, and what they should not do. These feelings are common, so please read this blog completely.

The truth is that you may be wondering if you should start trading because you’re nervous or if maybe it’s too overwhelming for you. If you are the type of person who freaks out over loosing money. NO Trading is not for you.

Trading is really a game, I often hear folks say this is a gamble. But so is starting a new business, buying a house etc. These are all a gamble in one form or another.

 

How do I Start Trading

One of the first things you will want to do is open a paper trading account. In other words, you will not be trading real money. Now with that being said, I will stress that sometimes folks paper trade and then shift to real money and freak out.

So, if you are this type of person, you might just want to stay away from trading all together. Trading there will always be days when you will have a winning trade and days where no matter what you do, you just can not make a buck.

 

Finding A Trading System

Once you start Trading, and you’ve opened a paper trading account, it is time to set your trading system.

This is a very important step in trading. I have made the mistake of not setting a system for months at a time. And it doesn’t work. I suggest that you keep the following rules for your system:

Always trade with the same funds . This means that you can not go from 100’s of dollars to 1000’s or 1000’s to use on the same trade. In other words, practice money management.

Once you have a system that works for you, and you are comfortable with it. Then maybe consider opening a live account.

Frustrated guy

Learn To Take A Loss

One of the hardest thing for any trader out there is to watch thousands of dollars disappear in a flash. I want you to let this sink in a little bit.

Learning to take a loss and it will happen. It happens all the time. I mean how many times have you heard stories about folks who lose there entire bankroll in one trade or even worse, lose it faster than they made it?

I am going to tell you that if you have a bad day, take a deep breathe and move on. Let that money make money for you again. But when it is gone, it is gone. Learn to take a loss and let it go at that.

Wins and losses do happen everyday, for every trade know that there is one winner and one looser. That is the cold hard facts of trading. Learning to take the good with the bad is just part of the game.

 

How To Stay Consistent

Trading anything above a 60% win rate should keep you on the right side of the coin. Meaning, if you have more than a 50% chance that your trade will make you money. You should do just fine in this industry.

Money management is also a big part of this, always risking x amount and always staying with those numbers. One of the most successful traders I know never risks more than 3% of his account and has made well over a million dollars already this year.

Nobody talks about money management enough, but it is a key to make it long term in this industry.

 

Conclusion

If you really have a passion in life for the markets, then yes you should educate yourself and join in the fun. But just like anything else in life, you really do need a passion for the markets. Anything short of that you just might be wasting your time and money.

Can Dropshipping Make As Much Money As Forex Trading?

Can Dropshipping Make As Much Money As Forex Trading?Can Drop Shipping Make As Much Money As Forex Trading?   The problem with this mind set is weather or not you can make more money drop shipping or with forex is. It's a debate that's being discussed...

Can You Get Rich By Trading Forex?

Can You Get Rich By Trading Forex?Can You Get Rich By Trading Forex?     I get this question at least ten times a month if not more, especially from those looking to trade (for profit) in the financial markets. I've been trading for about 15 years,...

How To Read A Forex Chart

How To Read A Forex Chart.How To Read A Forex Chart   One of the reasons people fail at trading they need to look back at who taught them to begin with. You see the reason 97% fail is plain and simple the information out there and that is the truth. I...

Why Do I Keep Losing Money Trading Forex?

Why Do I Keep Losing Money Trading Forex?Why Do I Keep Losing Money Trading Forex?   Why do i keep losing money trading forex is a question we hear on a weekly basis. If you have been trading for an extended period of time it's more than likely that you...

Can You Buy And Hold Currencies?

Can You Buy And Hold Currencies?Can You Buy And Hold Currencies?   Can You Buy And Hold Currencies like a stock? Does it Happen? Yes! You can buy and hold currencies the same way that you would stocks or other assets. If the currency has a $1 USD value,...

Should You Trade Everyday?

Should You Trade Everyday?Should You Trade Everyday? If you are new to forex and wonder if you should trade everyday, The answer is no. There are benefits and drawbacks to trading every day. The markets in forex tend to range a lot. In other words, price...

Why Forex Trading Is Bad

Why Forex Trading Is BadWhy forex trading is bad, should not be the question here. The question should be, how can trading in the capital markets help you? The reasons people forex trading is bad are many and varied. The following are some of the most...

How Not To Fall For A Forex Scam

How Not To Fall For A Forex ScamHow Not To Fall For A Forex Scam? What Is Forex? The forex market is a global market that lets you trade currencies. You can go long (buy) or short (sell). In other words, one currency's value goes up while the other...

Do Automated Forex Trading Systems Work?

Do Automated Forex Trading Systems Work?Do Automated Forex Trading Systems Work? In this blog post, we will answer the question: Do automated forex trading systems work? It might surprise you to know that I am here to tell you that they do not. The reason...

Forex- Is It A Scam?

Forex- Is It A Scam?Forex- Is It A Scam? Forex is a business option that many people are interested in. It can be confusing and difficult to understand, but you don't have to worry about it being a scam. Forex isn't regulated by the government so it's not...
U.S. Government Required Disclaimer – Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.