One of the latest trends is people turning to the Forex market to make a living. However, there are several things you need to learn about the Forex market before you get started. So what are the top 5 things you should know about the Forex market and make a living from it?
#1- Before you do any trading of any kind, you need to have a proper education on the financial markets. If you don’t have that, then how can you be sure you know what you’re doing when trading? Don’t make this mistake and you’ll soon be a laughing stock in your friends and family circles (if you have any) for making this mistake. This can be the start of a costly education and learning experience for you and your family. You’ll want to take your time and make sure you educate yourself properly. A good start would be with learning more about the Forex market and how it works.
#2- The Forex market can give you a solid 7-10% yearly annual return. Don’t expect too much, though. This is like any other business or investment. You should only trade what you can afford to lose and you shouldn’t put all your eggs in one basket. As you learn more about how the market works, you can then start to trade more contracts with a better proportion of your capital.
#3- If you’re going to be trading foreign currency for a living, then you need to be able to speak some German and some Russian. These are 2 of the most used languages for the Forex market. You can learn these 2 foreign languages and get by fine without learning English, but it would be smart to pick up a few tricks about how the Forex market works in those 2 languages. They are vital to having a smooth running business. It would also be smart to pick up some other foreign languages. Japanese, for instance. Or French, or Russian, or Spanish, etc.
#4- Don’t be afraid to take risks. If you’re not used to taking risks, then you’ll be losing your friends and family if you don’t start. Don’t be in a place where you can’t do that. If you’re not willing to take risks then you’ll be taking them on your own and you’ll be missing out on some huge fortune if you don’t start now. If your friends or family think you’re too risky then you won’t receive any goodies. So be careful. It’s better to let go of a few friends and family to make room somewhere else. And it’s always better to pick a foreign currency that’s lower risk than some of the higher risk currencies. The idea being that you have less risk and you can make more money in the long run if you’re better at taking risks.
#5- Don’t be afraid to try new things. Just as it’s better to have the right tools but not the right mindset, it’s also better to have the right tool but not the correct mindset. The right mindset makes it easier to learn and the right tool makes it easier to execute. If you don’t get the right mindset you might end up losing everything you have and losing your job along with it. If you need to try a new thing then just do it. And if it goes down then it’s not a big deal because you learned something that you can apply to the next thing you try.
So to sum up. If you’re willing to follow these 5 simple rules, then you’re going to get along fine as a forex trader. And if you’re not then you should seriously consider selling your tools and learning a new language or 2 and seeing if you can find a foreign currency that’s not too high or low to let you work with. It’s better to spend more time learning and not lose everything than spend less time and loose everything.