Before you establish forex trading systems such as how you will enter and exit a trade, you need to be honest with yourself. Only a person that truly understands who they are will avoid the largest mistakes trading in the currency exchange. It may sound strange to say that you must realise who you are, but the fact is unless you are 100 per cent truthful with yourself there is a potential to create huge losses as you trade.
Two Rules to Follow with Forex Trading Systems
The first thing to keep in mind is that all traders, even experts, lose money on trades. The second is that forex is not for everyone. No one likes to lose money; however, 99 per cent of traders using any type of forex trading systems lose money. It is usually due to improper planning, discipline, training, and money management issues. For those who tend to be perfectionists it can be hard to realise money is lost, but the fact is the market is something you cannot control. The market can move against you. If you cannot deal with money lost when it is not through a mistake but market changes then you may have to find a different option for making more retirement funds.
Anyone who is unemployed, with low income, extreme credit card debt, or cannot pay bills or buy groceries should not be trading in the forex market. There is a differing opinion with regards to the start up money required for your account; however, the more you have the better. A good rule is to have a mini account of funds which is essentially $10,000. This should be money you can afford to lose.
Your forex trading systems can start on less. A micro account of $1,000 is possible. Some brokers allow you to open an account with under $200 AUD. The problem is you can barely make a scratch in the market with low funds. If you have the belief you can turn $100 AUD into $1 million in a few short trades take a step back. Stop. Do not invest.
Even after proper education and training if you feel you can still become a millionaire starting out with small funds then stop. No get rich quick schemes exist. If they do, they are often scams in which you are bilked for thousands of dollars before you realise you are not getting back your investment. Forex requires huge risks if you want to get rich quick and these usually do not pay off. You tend to gain big losses than bigger profits. It is not a strategy but gambling to think in this manner.
Forex Trading Systems Built on Skills
Forex is built on skills you learn. It takes discipline to sit at your desk each day reading up on forex lessons. It takes the same discipline to start looking at fundamental reports and technical data in order to make the first trade in a demo account. Forex trading systems require practise, experience, and discipline to follow through if you hope to gain profit.