Starting Right in Forex Trading for Beginners

In my previous article, I enumerated very important reminders which are the 7 Deadly pitfalls of aspiring Forex Traders. Whilst it is quite normal that most of the traders trade the markets for monetary reasons and aim for financial freedom, lots of traders end up losing not because they lack the enthusiasm but because of starting with wrong set of beliefs and wrong way. Forex trading is a business and there is a proper way to start it to make it long-lasting. I especially emphasize this article since this is one of my personal mistakes when I was starting as a newbie trader. Most starting traders are eager ones and mostly likely they are the ones who easily get frustrated and burned-out in trading because of their sense of urgency, high and unrealistic expectations to "get-rich-quick". While in reality, there is no such thing as get-rich-quick in forex trading nor in any industry, but there is proper way to start to get there and achieve financial freedom for long-term.

When a trader “badly” needs to earn money and desperately do every trade to earn, most of his/her decision-making in the markets will be greatly affected by emotions especially when a trader experience series of losing trades. A trader will then encounter trading errors such as trading without appropriate signals, getting in or getting out too early, all of which are result of emotional trading or trading based on excitement or fear and not based on OBJECTIVE TRADING or trading with a system or trade plan. Most traders, especially those who wants to get rich quick, they over-trade or risk a lot more, add more positions because of greed and unrealistic expectations.

So here are some tips to start right and protect ourselves from emotional trading, this also helps to avoid committing trading errors and having peace of mind or sound mind in trading the markets:

1. Start with Small Account first - As a beginner, a trader should not rush in making big money in the markets. It takes a process to be a constantly profitable trader so it is very wrong to start with big hard-earned money and expecting to quit your day job too soon and go full time in trading. It is just not the way it should, especially if you are still a newbie trader. So here are important reasons why a trader should start first with small account.

• First: To Avoid Emotional Attachment: Most professional traders' advice is to start with a money that you are totally "okay" to lose or a disposable money. So the question is, if you are starting with a big amount, is that amount considered disposable? Most probably not. It is a very big mistake to start with big money and most especially "loaned" money. The problem about starting with a big amount hard -earned money is that you have a bigger chance of getting hurt once you encounter losses.Once a trader has emotional attachment with the money risk, worries and fears are imminent.Since that money is not disposable, fear of losing is quite possible. And that fear will cause a trader to panic whenever the market goes against the trade, and with that, he/she may get out from the trade too early not knowing that the market goes back and hits the profit target. This is a very common error to those who are trading with fear of losing. And that fear of losing comes from emotional attachment with the risked money.

• Second: Master managing small account. Managing big account is no different that managing small accounts. So if you are not successful first with managing small, there is a big chance that you will also not make it with big accounts. The thing is, numbers are deceptive that is why we should not focus on the numbers. Professional traders never focus on numbers but on the PROCESS. So, starting with a big account to earn in forex is a big myth! It is true that big accounts offer big possible earnings but it is not the account that makes a trader earn well, it is the process - the proper implementation or execution, right money management, correct mindset and successful habits.Starting with big amount of money but absence of those mentioned above, it is only as good as burning your hard-earned money.

2. Start Part-time – This is in connection with starting small, a beginner trader must start part time. This may be the best way to start as a Forex Trader. When you start small, it is expected that your earnings will not be that big yet to sustain your bills or other expenses. Instead of pressuring yourself to earn fast in Forex, try to diversify your earnings with other sources of income like a day job or any other source of earnings.

Most new traders are lured (by some other traders/brokers) about the time freedom and income in forex, but however, a trader should always remember that everything pass through a process. Yes forex trading promises time freedom where you will no longer be a slave with a 8-5 job routine, but it does not happen over night. It may take years for a committed forex trader to be confident enough to leave his/her day-job and go full time. Again, the reason why we advise this is to give traders peace of mind in trading the markets, to remove all worries and fears of losing because these two are very destructive in the long run. If you start part-time, you will never get too much attached and worrying the outcome of your trade, so you will stick to your trade plan , let the market do its thing and trade objectively.

3. INVEST IN LEARNING - When I started as a trader, I was lucky that I already have a bit of a background in sales. In sales, your result (sales) is just a manifestation of your knowledge and experience. Experience is gained through series of attempts and failures. But for beginners and with no background in sales, failures may hurt a lot and may cause a damage in the emotional real of a person. As a beginner trader, it is important to focus on the process first, learn it and love it. Take one step at a time, test your strategy, record it and monitor your growth in demo trading before going live. Never rush to earn big. Rushing may cost your account in the markets.

Today, knowledge is almost free and available especially with the presence of internet. You can research and read about forex trading, download e-books, videos and subscribe to websites that gives valuable information. Reading this blog this far is one good sign that you have a good learning attitude. In my case, I wrote a blog not just to teach but to learn. The more I write articles, the more I refresh all the knowledge I have that is why I love teaching since I am always refreshed and at the same time I can help others as well.

CONCLUSION

Forex Market is a very huge market that offers limitless opportunities to those who are risk-takers and risk-managers. However, the markets has no emotion whatsoever. The markets don't care if you are hurt or not, if you win or lose. The markets go where it should. So as traders, since we are tagged as"masters of risk", we can only master risk not by avoiding it but by controlling ourselves and prevent ourselves from being hurt. Starting with no emotional attachment in the markets helps a lot for a trader to trade objectively and not based on emotions. Objective trading is trading based on a trading system or trade plan, pre-defining the risk and sticking to your rules. This is a 100% emotionless trading which means that after pre-defining your risk, you are 100% okay if the trade will not work or lose.

You can learn our advance training in Alpha Forex Trading community. I personally teach my system, a very effective and simple system that will help you to trade objectively and win the markets in the long run. Please keep in touch for the launching of my trading course. For the moment, you can email me at alphaforextrading2017@gmail.com for you to receive notification and further announcements. Your success is our concern, lets conquer the markets!