You can read scores of online resources or pore over countless books, but it still doesn’t guarantee you success as a Forex trader. So what does establish you as a viable player in the market? Practice and planning! Yes, nothing can come close to gaining hands-on experience and applying the learned knowledge in real life. A prescribed plan of action is also vital to drive your trading approach in the right direction and make you great fortunes. Do not equate Forex trading in South Africa to gambling. Instead, adopt a practical approach, create a plan, execute it, and gain experience to better your trading performance.
Let’s take a look at six tips that will help you craft the best Forex trading plan:
#1 Start with demo trading
Avoid pooling in real currency to test out the field. Instead, open a free Forex trading account, trade with virtual currency, understand the process, get familiar with the platform and assess your skill. Once you’re confident, only then should you venture into live trading.
#2: Emotional Strength
The Forex market with its high volatility and uncertain market conditions can plunge you into periods of emotional turmoil that could jeopardize your trading career. Keep up your emotional strength at all times and devise a plan that suits your personality and lifestyle.
#3) Set targets
You need to be prepared for losses, thus making it necessary that you prescribe an amount of loss that could be borne by you. Likewise, you also need to factor in the profit you’d like to make. Be realistic and come up with trading strategies that could chase down your profit goals.
#4) Stay tuned always
The Forex trading market is accustomed to swaying as per economic, political or other events. You can’t cut yourself off from it all if you expect to succeed as a trader. Read news feeds, magazines, journals and make sure you’re well-informed. This allows you to analyze the market before entering a trade.
#5) Refine your trading system
The trading platform you choose must support your needs. MetaTrader is considered the best by many. Once you’ve opted for the right system, you need to fine-tune it. Set support and resistance levels and use visual and auditory signals to alert you on entry/exit points.
#6) Maintain a journal
One of the biggest mistakes you could make is by believing that you’ve formulated the best Forex trading strategies – because you haven’t. There’s always room for improvement. Keep a journal, record all your trading activities, and know where and why you went wrong. This could help you alter your approach accordingly.
You can always do better by allying with reputed Forex brokers in South Africa. WesternFX is leading brokerage that can equip you with a free Forex demo account, loads of educational materials, and professional guidance to help you form a better trading plan.
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