{"id":482,"date":"2013-04-19T14:06:39","date_gmt":"2013-04-19T14:06:39","guid":{"rendered":"http:\/\/www.instaforex.com.pk\/live\/?p=482"},"modified":"2013-04-19T14:06:39","modified_gmt":"2013-04-19T14:06:39","slug":"forex-knowledge-5-things-to-consider-before-trading-2","status":"publish","type":"post","link":"http:\/\/www.pakistanoffice.com\/live\/fee-urdu-forex-training-course-in-pakistan\/forex-knowledge-5-things-to-consider-before-trading-2","title":{"rendered":"Forex Knowledge \u2014 5 Things to Consider Before Trading"},"content":{"rendered":"

\"4efaeba3-6436-4953-be70-6ea277363f79\"<\/a>In\u00a0certain aspects Forex has been around\u00a0us, since there was no\u00a0electricity in\u00a0caves. Long ago people always traded currency they had: whether it\u00a0was food, animals or\u00a0some shiny minerals. With the creation of\u00a0modern money (coins and then paper) different nations traded one currency for another. In\u00a0modern times currencies are widely traded by\u00a0the world’s major financial organizations. The birth of\u00a0a\u00a0retail market in\u00a0mid 1970s allowed non-commercial players to\u00a0trade Forex. However, the most crucial change to\u00a0the industry came in\u00a01996 when Forex trading was put online.<\/p>\n

Nowadays, the Forex child grew up\u00a0and became the real giant. Over $4.5 trillion is\u00a0traded daily in\u00a0the Forex market where almost $1\u00a0trillion belong to\u00a0the activity of\u00a0such traders like me\u00a0and you. These numbers strengthen Forex reputation and tell\u00a0us about the broad opportunities for making profit with\u00a0it. However, where the benefits, there come the dangers. Not every Forex-teaching company tells you about them\u00a0\u2014 these guys need you to\u00a0be\u00a0thoughtlessly attracted to\u00a0trading.<\/p>\n

In\u00a0this article, I\u00a0want to\u00a0give you the basics\u00a0\u2014 five steps to\u00a0put your thinking along the way of\u00a0desirable profits in\u00a0this biggest market space in\u00a0the world.<\/p>\n

1. The Hype Makes It\u00a0Wipe<\/b><\/p>\n

One trade makes me\u00a0a\u00a0millionaire. Hail Mr. Soros! This is\u00a0what brokers want you to\u00a0think when you are about to\u00a0start with Forex. Relax and refer such words to\u00a0what they call “True lies.” Not a\u00a0Schwarzenegger movie, but a\u00a0twisted reality. You can strike rich in\u00a0Forex\u00a0\u2014 it’s “true.” However, “lie” is\u00a0that it\u00a0comes an\u00a0easy way. If\u00a0you don’t be\u00a0disciplined, prepared and patient, your winning chances are close to\u00a0lottery. Approach market responsibly with a\u00a0balanced frame, set your goals and stick to\u00a0them. Like in\u00a0fishing, success comes to\u00a0those who wait and then strike.<\/p>\n

2. Don’t Stay Hungry<\/b><\/p>\n

I\u00a0basically don’t mean that you have to\u00a0trade Forex after having a\u00a0nice breakfast. No. Before putting any cent into this venture, think if\u00a0you are ready to\u00a0lose\u00a0it. Don’t leave your family without any food or\u00a0clothes after betting all on\u00a0“black” and losing with “zero.” Trade a\u00a0capital that you can afford to\u00a0lose without affecting your common life strongly. As\u00a0a\u00a0trader, I\u00a0have to\u00a0admit\u00a0\u2014 more than\u00a080% of\u00a0new traders lead to\u00a0losses. So\u00a0think twice. If\u00a0you are ready to\u00a0say “good bye” to\u00a0your investments and still carry\u00a0on, you have a\u00a0chance get into those 20%.<\/p>\n

3. Read, Listen, and Learn<\/b><\/p>\n

Like you wouldn’t borrow your hard-earned to\u00a0some guy Phillip you had met only once. You would not jump into such a\u00a0risky and volatile market like Forex without knowing “who,” “what” and “why.” Your complete research on\u00a0the subject should include all the market aspects: how it\u00a0has developed, where it\u00a0is\u00a0going, etc. Study the\u00a0FX history more carefully than\u00a0I put in\u00a0first paragraph. Then you could speak to\u00a0other traders and hear what they say (e.g. go\u00a0to\u00a0forums) about the worthy trading practices, best\u00a0FX tools and services, the surest tips on\u00a0predicting the market movements, etc. Also learn to\u00a0read charts, understand and distinguish the Forex news, and (most important) learn your strengths and weaknesses to\u00a0work on\u00a0them henceforth.<\/p>\n

4. Use Many Baskets for Your Eggs<\/b><\/p>\n

The way to\u00a0success in\u00a0Forex (if\u00a0I may call it\u00a0like this) is\u00a0thorny so\u00a0treat your capital with care. Do\u00a0not put all of\u00a0your hopes on\u00a0one trade\u00a0\u2014 use the certain percentage of\u00a0your equity. Although these numbers are up\u00a0for debate, but take a\u00a0loss into account, try to\u00a0predict where your account will be\u00a0after you lose a\u00a0trade. My\u00a0receipt here: use Stop Losses and Take Profits, trade smaller trades, “kill” your greediness, and DON’T even think to\u00a0overcompensate for losses. Loss means loss. Extending your Stop Losses in\u00a0hope the market will reverse itself is\u00a0worthless. Usually, it\u00a0does not do\u00a0that. Your “best friend”, a\u00a0trend, could become your worst enemy. I\u00a0would also recommend you to\u00a0trade several currencies to\u00a0branch out the risks in\u00a0terms of\u00a0trades and currencies.<\/p>\n

5. Don’t Let It\u00a0Go\u00a0to\u00a0Your Head<\/b><\/p>\n

It’s like a\u00a0deep-town rock band, nominated for a\u00a0musical award: they haven’t finally won but already turned into mannered and arrogant creatures. As\u00a0for traders, there is\u00a0no\u00a0good for them to\u00a0get too excited and anxious with trades. Any given second they can reverse. If\u00a0you let your Forex successes go\u00a0to\u00a0your head, it\u00a0will change your trading philosophy so\u00a0you might take risks where you never did.<\/p>\n

Be\u00a0consistent and get it\u00a0one by\u00a0one. Like deserts are thankful for the rain, be\u00a0grateful for what you win. And carry on\u00a0with the current scheme if\u00a0you are profiting. Stick to\u00a0your plan and be\u00a0deaf to\u00a0your hunch calling to\u00a0move Take Profit or\u00a0extend Stop Loss.<\/p>\n

As\u00a0an\u00a0“after word” I\u00a0would like to\u00a0say that Forex market is\u00a0immensely huge. You can profit quickly and get large returns. However, if\u00a0you are betting on\u00a0“black” because it’s your favorite color, you can win in\u00a0casino, but with Forex in\u00a0the end. Address it\u00a0like a\u00a0business (with same responsibility) and it\u00a0will get back to\u00a0you with the benefits.<\/p>\n

by\u00a0Alexander Collins<\/p>\n","protected":false},"excerpt":{"rendered":"

In\u00a0certain aspects Forex has been around\u00a0us, since there was no\u00a0electricity in\u00a0caves. Long ago people always traded currency they had: whether it\u00a0was food, animals or\u00a0some shiny minerals. With the creation of\u00a0modern money (coins and then paper) different nations traded one currency … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[194],"tags":[26,27,28,29,44],"_links":{"self":[{"href":"http:\/\/www.pakistanoffice.com\/live\/wp-json\/wp\/v2\/posts\/482"}],"collection":[{"href":"http:\/\/www.pakistanoffice.com\/live\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.pakistanoffice.com\/live\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.pakistanoffice.com\/live\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.pakistanoffice.com\/live\/wp-json\/wp\/v2\/comments?post=482"}],"version-history":[{"count":0,"href":"http:\/\/www.pakistanoffice.com\/live\/wp-json\/wp\/v2\/posts\/482\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.pakistanoffice.com\/live\/wp-json\/wp\/v2\/media?parent=482"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.pakistanoffice.com\/live\/wp-json\/wp\/v2\/categories?post=482"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.pakistanoffice.com\/live\/wp-json\/wp\/v2\/tags?post=482"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}