Everyone wants to make money – it’s a simple fact of life. What is less simple is how do you do that. There are so many get rich quick schemes on the Internet that it is hard to know what to trust and what is complete nonsense. Fortunately, we finally have a guide to show us just what to do without the off-putting jargon that makes it seem so much harder than it really is. It’s forex trading.
Let’s Make Some Dough is an e-book designed to give you an overview of Forex trading – that’s trading on the foreign exchange market. In other words, traders buy and sell currencies from around the world as and when they fall and rise in value. It requires paying careful attention to what is going on in the world and then making informed decisions. Throughout the book, you are taught not only the intricacies of Forex trading, but also what kinds of traits you should develop to become a successful Forex trader.
Forex markets are the largest financial markets in the world and have a trading volume of around $3 trillion per day. If you want to join in the action you will need to start by developing the right mindset. Forex trading can be highly lucrative, but that does not necessarily mean you will be a millionaire overnight. As with anything, you need to build up your skills and be patient. But, as the old saying goes: good things come to those who wait.
So, what kind of mindset do you need? Well, the first thing to understand is that you are not going to win all the time. There will be days when the markets are down and you have lost money. It is important in these scenarios that you keep your cool and do not engage in emotional trading. Realise that there are some things that are beyond your control, take a deep breath, and make a rational decision based on the data you have in front of you.
The three key steps
The three key steps this e-book suggests to acquire the perfect Forex trader mindset are as follows. Step one is to set realistic expectations. Everyone wants to make a profit, but if it were that easy everyone would be a millionaire. Set yourself a target and sell out when you reach it. You can then use some of the money to re-invest and start again. Do not let your greed cloud your judgement or you could end up with nothing in the end.
Step two is learning to trade wisely and appreciating that quality trumps quantity. Some traders want to trade every day, and while this works for some currencies, others are slow-burners. This means you need be patient and keep an eye on global affairs to see how your currency is going to be affected. Calculate the risks, use the charts to your advantage, and learn when is the perfect moment to sell.
The final step
The final step is to be organised. Writing a trading plan and keeping and trading journal might seem like unnecessary hassle, but they will help you make better decisions. Keep your thoughts organised and learn how events around the world have a knock on effect on the Forex market. Be disciplined and make sure you are fully informed before buying or selling anything. This is the most important step to ensure your success as a Forex trader.