Last Updated on Apr 3, 2020 by James W
The flow of newcomers to the online trading community are many and constant. There are literally thousands of people like you and me, joining brokers platforms and trading online every single day. Each of them having read about the concept of currency trading and eager to begin trading immediately. But what each of them should remind themselves and each of us should know is, only fools rush in… This saying is true to a lot of newcomers and rookies. There is no polite way to put it, if you rush into to anything without adequately preparing yourselves, you are making a foolish mistake and will soon find yourself being overwhelmed in deeper waters. There is so much more to online trading than just picking a currency pair and trading it. There are complexities of strategy and preparation that only someone who has been trading awhile now would understand. To avoid making huge mistakes during online trading, follow the simple tips below
Online trading newbie
I get it, it’s exciting, the rush of the trade, the win and the money credited to your account; success is abundant and you are only wasting time by not trading right here, right now. But wait a minute, did you really prepare yourself for what is a serious and demanding experience? Many newcomers to online trading jump the gun, which only results in them having a heavy learning curve by incurring huge losses, way more than should be expected, as they train themselves by experience alone. While theoretically this can be done, it isn’t at all recommended, as trading currencies should be a smooth and careful progression from demo account, where you practice your trades and strategies, to live account where you are dealing with your funds. There is absolutely no reason to rush into trading live.
Bear in mind that the broker you chose to trade with, will have a plethora of online articles and information for you to review, from rooky all the way up to expert level. You should take full advantage of these, as there are put there for you to grow and succeed. When you are trading with funds, there is little room for error, meaning that the more you prepare yourself, the greater chance you have in making a profit. Sometimes losses can wipe out an entire account within a blink of an eye, because the trader was too inexperienced to safeguard against just major losses. Even if you keep your losses in check, don’t forget to focus on the wins; many novices think any win is amazing, however you could be wasting your time or losing out on a bigger profit margin, simply by adopting a more sophisticated trading strategy. Maximising wins and minimizing the impact of losses are just a few subjects that should be studied and prepared for beforehand.
Why News Matters
Not keeping current with the news could seriously set you back. In trading, preparation is everything, yet it is extremely difficult to be prepared if you don’t keep current with the world news. I am not talking about forcing yourself through hours of boring business and financial news. All you need to do to stay current is, watch the headlines in the morning, or lightly brush up on the latest happenings on official and recognized news sites. It is especially useful to follow news on the countries that hold the currencies that you are trading in.
You shouldn’t needlessly lose out on profits or increase the number of losses just because you are itching to get started. Educate yourself through brokers tips and articles, and only graduate to a live account, once you are satisfied that you have things in check.