Ever wondered what it takes to start and master Forex trading? We spoke with a Pro, and here are some vital nuggets you might want to note.
How did you come across/ get into Forex trading? How can others do the same?
As a young man making just above minimum wage back then, I was attracted to Forex by the flashy lifestyle. Those who said they were traders showed me a dream that wasn’t possible, so I started trading and began haemorrhaging money. I had 5,000 Pounds Sterling and was highly displeased that I wasn’t getting the desired results. My Forex guy then told me to be patient and learn.
I started practising with a demo account and dedicated my time to learning as much as I could. One of the things that helped me was books like ‘Forex Revolution’. I started to try different things and learn about the psychology and methodology of how people and the market works.
For anyone who wants to go into Forex trading, I will say: First, do not go into it for the wrong reasons e.g greed.Get a proper understanding of the fundamentals and technical aspects. Set up a demo account with your demo broker. Understand that what matters is making money consistently, not one grand cashout idea. That’s not sustainable. You need to have a systematic approach that works for you as well.
Beware: In Forex, you think you are in control, but you are not.
Can you disclose your largest earnings from Forex? And how did it happen?
After 5-6 months of learning all I could, I jumped back into the market and spotted an opportunity. Since I was armed with enough information, I was able to jump on the opportunity and that yielded 82,000 GBP.
How about your loss? How did you bounce back?
My biggest loss was 41, 000 USD. Currently, I have some losses running, but I’m not so bothered because I know things will bounce back. Most times, people lament about their losses because they get excited and jump into a trade without proper market analysis. My advice is to never have a running position value of 50 % of your capital – that’s the fastest way to get doomed.
How big is too big in Forex trading? Are goals/dreams ever too big?
Dreaming is good when it’s not coming from a place of greed. So, don’t be greedy. Look at it this way: if you fly too close to the sun, you’re bound to get burnt. Again, it’s all about applying psychology.
Would you say luck or hard work has been responsible for your success in Forex trading?
It’s hard work and a little bit of luck. I put in the work, there’s no way around it. Social media has created a perverted idea of making money. If you think it’s that easy, do it.
What values resonate the most with you and your success?
Discipline, proactiveness, self-control, and not being greedy. One always has to have ears to the ground. Before I carry out any trade, I apply some psychology and think: What are the co-relations? I never move blindly.
How important is your choice of broker to your success, or is it inconsequential?
It is highly important to get a broker who is easily reachable, transparent, and quick with execution. One who understands that you are a starter and is highly responsive. I think most upcoming traders don’t know that they can and have the right to ask their broker questions like, “What is happening?” Or “Are you regulated?” Shoot your broker an email and ask important questions like that. Because one thing you don’t want to do is trade on an unregulated platform.
What is your go-to strategy when trading?
What I use is the inverted triangle pattern. I developed this strategy myself. It keys into the endogenous, exogenous, and technical factors before arriving at an analysis. This helps me determine what the economic activities happening within and outside the country are and how they affect the market before making a trade. I would say that developing a personal go-to strategy is paramount if you want to develop a long-term career in Forex.
How do you act in a market frenzy (positive or negative)?
The market is highly volatile and this messes a lot of people up, causing them to lose money. How to avoid this is to be as calm and collected as possible. Make use of your leverage, but don’t overdo it. Always ask yourself, “What percentage of my account am I willing to lose?” That way if you do lose it in a moment of frenzy, you won’t be left distraught.