There’s a lot of advice available to aspiring traders these days. Some of it is useful, some isn’t. But how do you know what to listen to and what to avoid?
The truth is there’s no quick way to tell. Like anything, instead of just diving in and taking things on face value, it’s a case of having to spend a bit of time looking through your options and picking out the things that best suit you, your goals and your strategy.
But one thing is certain: If you can dedicate time to setting yourself up properly and finding the best resources to help you along, you’ll have a much better chance at mastering the Forex market. Here are a few key considerations when you’re at the beginning of that trading journey.
Pick Your Platform
The trading terminal –the software you use to trade on your computer or mobile device –is your fundamental connection to the trading world and therefore your most important tool. It’s worth taking your time to pick a good one.
If you’ve never used a trading platform before, you might want to shop around and try a few different options before settling on one you like. The world’s most popular trading platform (and the default option for AxiTrader clients) is MetaTrader 4. It’s been independently developed and enhanced over many years to the point where it offers pretty much everything a trader needs; comprehensive real-time coverage of trading options, connections to fast networks, customisability, compatibility to be used on a range of devices and the ability to install add-ons. That it’s popular with everyone from brand new traders through to seasoned professionals says a lot about the merits of MT4.
Do A Demo
Every trader has to start somewhere and the best place to begin is in a safe environment where there’s no risk of losing of your own funds. That makes a demo account –a replica of the live trading environment –essential. This is where you learn the basics, make mistakes, then learn from those mistakes
A reputable broker will offer use of a free demo account (with AxiTrader that’s done via MT4, as above), with no obligation to deposit money. Even though this effectively gives you a care-free license to trade, you should try to approach your demo account as if you were trading with you own funds. The reason? It’s psychological.
If you spend all your time in your demo account engaging in high value trades far in excess of what you could afford in real life, you’re not really practicing your trading, you’re living out a trading fantasy. That’s because when you trade with virtual funds, there’s no pressure. You can make big calls without consequence. But once you put your own money on the line, the consequences are real and that can affect your judgement. But by treating your demo account with respect from the outset, and in a realistic manner to how you would trade in a live environment, you’re effectively smoothing the transition and preparing yourself mentally.
What’s more, demos never lose their relevance. Once you’ve advanced beyond novice status, you’ll still find your demo account extremely useful for testing out different strategies and working in parallel with your live account. Using your demo account responsibly will help make you a better trader.
Market Analysis and Reports
With markets open all around the world almost all the time and producing a constant influx of data, it’s pretty easy to get overwhelmed by the sheer volume of analysis available to traders. The trick to sifting through this avalanche of information is to get someone more qualified to do it for you, then just pick out the most relevant parts.
The first step is to figure out what type of information you’re looking for. Do you just want up to date pricing? Do you want a summary of the best performing overnight currency pairs? Are you a commodities trader who only wants to know how gold or oil are tracking? Each trader will have key instruments they’re interested in, so that’s a good way of helping you focus on the important bits and filtering out the rest.
Next, you need to find reports you can trust. The most obvious source is to pull news straight from well known business and financial websites, but there are plenty more produced by reputable experts that have been working as traders or in the trading industry for decades (AxiTrader has several daily market wraps from such experts) and who can offer insights that perhaps wouldn’t be seen by less experienced traders. The analysis you choose to listen does depend on what information you’re after –be aware that some of it may come at a cost –but there’s no doubt that you’ll be able to find it.
The importance of a good trading education cannot be emphasised enough. Fortunately, there’s an abundance of ways to help get your brain into gear. Whether you prefer to read, watch videos, listen to news, participate in webinars or post on forums, there’s a method for every learning type. When you pair these up with your demo account to put some practice into action, you’ll be giving yourself a solid foundation to build your trading knowledge.
To become a successful trader, you need to view it as a long term commitment and one in which you never stop learning; just when you think you’ve got everything covered there’ll be another surprise around the next corner –at the very least it ensures things stay interesting and exciting!
The information provided here has been produced by third parties and does not reflect the opinion of AxiTrader. AxiTrader has reproduced the information without alteration or verification and does not represent that this material is accurate, current, or complete and it should not be relied upon as such. The Information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any particular trading strategy. Readers should seek their own advice. Reproduction or redistribution of this information is not permitted.
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