As a trader, it’s not uncommon to feel like you’re struggling under the sheer weight of all the different things you have to learn. From working out how to defend yourself against forex fraud to deciphering what all the different patterns mean, it can be tough to get started.
However, the good news is that newbie forex traders can still boost their chances of success. While this certainly isn’t an industry in which shortcuts can lead to instant riches, it is a sector in which there are some innovative ways to speed up the learning process.
This article will share them and give you a steer in the right direction.
1. Be Careful with Time
Time is a precious commodity in the forex trading world, and it’s also limited – meaning that you should take steps to use it wisely. It’s undoubtedly the case that you’ll need to invest time upfront when you start trading, especially when it comes to looking for brokers and ensuring that you don’t fall victim to a scam. Due diligence is time-sapping – but it’s worth doing, especially in this fraud-filled trading world.
It’s in other areas of your trading life that you can cut down on the time burden required. You may, for example, stop using certain tools that aren’t providing you with a direct benefit. Not every economic calendar is equal, for example: if you find that you’re often having to waste time by searching Google for extra information about a niche central bank interest announcement, say, it could be time to ditch your current resource and find a better, more detailed one.
2. Get the Right Resources
On that note, resources are also a key method you can use for flattening the learning curve. There are countless books out there that have been created for the purposes of helping foreign exchange traders get the details of what they need, and they’re available in both ebook and physical book format. Reading reviews of these is a good shout, however, as you don’t have unlimited time to find the right ones!
3. Pick an Intuitive Broker
Some forex brokers are designed for newbies to get along with – while others are too complicated for somebody who’s fresh to the sector. The latter type of broker could cause you to waste your time. However, a broker that augments its actual brokerage software offer with handy explainer guides and stimulating video education content is definitely a good shout.
Using a broker such as this means that you can learn as you practice rather than do the theory first and the practical later. As this article from respected source Forex Fraud explains, another option is to pick a broker that offers managed forex accounts: that way, you can get someone else to do some parts of the trading process for you, though it’s always for a fee.
4. Use a Demo Account
Finally, it’s a good idea to do even more practice by using a demo account. A demo account is a tool designed to let you experiment with the broker’s trading platform for ‘fake’ money before you proceed with actually placing a trade that has financial consequences (and the risk of loss).
This has a double effect. Not only does it expose you to the kind of strategies you might need to garner success in the forex trading world, but it also gives you the psychological confidence to build strategies and stick to them. The consequences in the demo account don’t have any real-world impact, so you can devise different approaches to trading and see how they work.
It’s worth noting that not every broker offers these tools. In fact, some brokers don’t offer any sort of practice or demo area at all. If you’re new to trading, it’s important that you find a brokerage partner that lets you do this so that you can get a sense of how to trade before you place your capital.
Overall, then, it’s clearly not possible to shortcut your way to the top in the foreign exchange trading world. However, what is possible is cutting down on the amount of time you spend training yourself up as a forex trader by investing in some specific methods for success.
From keeping an eye on how much time you’re spending on your trading work to ensuring that you only use decent resources that give you what you need, there are plenty of ways to enhance your career and get ahead – even if you’re new.