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10 Forex Trading Tips to Avoid Disasters

10 Forex Trading Tips to Avoid Disasters

Foreign currency trading, or forex trading, is one of the most complex and difficult to understand industries out there. If you’re serious about not only getting into forex trading, but becoming a success in the field, there’s a lot to learn and watch out for as you begin this journey. Many come into forex trading with one thing in mind: profit. The fact of the matter is that profit in the forex world will not happen overnight. But if you keep the following tips in mind, you’re sure to get into the game on the right foot and with a much greater chance for success.

1. Understand yourself before you dive in

One of the most overlooked aspects of forex trading is that it’s not all about numbers, markets, and probability. It’s also one big psychological game. If you’re not yet self-aware enough about your strengths and weaknesses, it’s best to really understand where you stand before you head into your first trades. Emotions like greed and fear can quickly take over while trading and that will ultimately lead to a loss of money for you. Developing skills like patience and perseverance in yourself will ultimately lead you to success in forex trading.

2. Plan, plan, and plan again

One of the biggest factors to success in forex trading (or virtually any other venture) is intensive planning, setting goals, and sticking to those goals. If you plan for everything and keep that plan close at hand, you’ll be less likely to deviate from it. Figure out what determines success and failure in your specific case. Measure out how much time you can dedicate to your trading career. And also, set high goals for yourself, but not too high that they’re absolutely unattainable.

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If you want to take risk, plan ahead. You need to check the recent past graphs of the trade. You need to make a note, your most important success tips, print it in large bold fonts and stick it on the wall. Whatever, happens follow that guide. If you picked a figure for stop-loss, follow it. If you have picked a figure for profit, follow it. Being too greedy and emotional is the main crime in forex trading. It’s a brain-game. So, be calm and think wisely.

3. Logic is king

In forex trading, logic rules over everything else. If you’re a naturally impulsive person, really take a look at that and see how you can train yourself to be more logical in your actions. Forex is a world of numbers, probability, and logic. If you don’t understand this one rule, you will have a hard time finding success.

4. Follow the 2% rule

This one should be your Golden Rule when it comes to forex trading. You never want to risk more than 2% on a trade, otherwise known as a 2% stop-loss. This is one very easy way to make sure that you keep your trades safe and ensure profit in the long-run.

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5. Have big dreams, but also be realistic

A majority of beginning forex traders come into the business with high hopes for making huge profits in their first year of trading. If you’re extremely lucky, this might happen. But most of us can’t count on luck to find success. Before entering the forex trading world, you should take an in-depth look at what you’re able to put in before you decide what you want to get out of it. How much time do you have to dedicate to trading? How much cash do you have to invest in this field? Really take some time to figure out the answers to these questions before you begin.

6. Make sure to pick the right broker

Having the right broker with right analytical tools is a must if you want to succeed in the world of forex trading. Be sure to do your due diligence before you start with any of the broker. Measure their customer service to see how helpful they are in times of need. How is their trading software and does they provide access through app (iphone, android)? Is there commission par with the market rates? If they are charging too-low than market price, then showing can be fishy. So always look for reviews online which are genuine and not made.

7. Start with “one” at a time

The forex trading world is incredibly complex due to the dynamic nature of world markets, so any way of making your trading game simpler can only help you on the road to success. Most expert traders will advise you to stick with one currency pair that you’re most familiar with before you learn enough to expand your portfolio. It might be best for you to start with the currency of your own country to start with. It’s all about patience!

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8. Take notes about your failures & successes

 Learning from your failures is one of the most important pieces of advice out there and it’s even more relevant in the forex trading world. The fact of the matter is that failing is an inevitable part of being a beginning trader. So when you do fail (or when you succeed!) take some time to yourself and note down what happened and how you can improve for next time. That way, when you get to a similar circumstance down the road, you’ll have your notes to follow up on and make better decisions.

9. Patience is and always will be a virtue

If you made to the top in seconds, then you will fall in micro-seconds.

You must have heard, slow and steady wins the race.

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Every one of us has heard the old adage that patience is a virtue. You may be tired of hearing that, but it’s so true in the realm of forex trading. You’re going to be in this for the long-haul if you want to be successful and make a profit. If you’re generally not a patient person, take some time before you start trading to try to determine how to instill that patience in yourself. This will not only help your career in trading, but also your life in general.

10. Keep going, no matter what

Perseverance is key when it comes to finding success in trading. Even if you find yourself failing many times and it may seem like giving up is the way to go, keep persevering. That is the only way that you’ll eventually learn from your failures and find more success down the road.

The most important thing you should remember about forex trading is that there’s no such thing as too much preparation. Take these points above and do more research on how you can find success in the forex world. Prepare as much as you can, learn how to be patient and to persevere through tough times, and success is sure to be found.

Featured photo credit: pixabay.com via pixabay.com

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Last Updated on January 2, 2019

How Personal Finance Software Helps You Get More Out of Your Money

How Personal Finance Software Helps You Get More Out of Your Money

Do you know what mental health experts point to as the biggest cause of stress in the United States today? If you said “money,” then ding, ding, we have a winner!

Three out of four adults today report feeling stressed out about money at least part of the time. People are either worried about not having enough money or whether they’re putting the money they do have to use in the best possible way.

Your money is either in charge of you or you’re in charge of it, there’s no middle ground. Using some type of personal finance software can help alleviate some of that money stress and better allow you to manage your money effectively. Without it, you may just be setting yourself up for constant financial worry. Life is already tough enough and there’s no need to make it more difficult by simply hoping your money issues will all work out in your favor. Hint: they won’t.

This guide will help you to understand how personal finance software can better assist with both accomplishing long term financial goals and managing day-to-day aspects of life.

Whether it’s tracking the savings plan for your child’s college fund or making sure you won’t be in the red with the month’s grocery budget, personal finance software keeps all this information in one convenient place.

What Exactly is Personal Finance Software?

Think of it like the dashboard in your car. You have a speedometer to tell you how fast you’re going, an odometer to tell you how far you’ve traveled, and then other gauges to tell you things like how much gas is in the tank and your engine temperature. Personal finance software is essentially the same thing for your money.

When you install this software on your computer, tablet, or smartphone, it helps to track your money — how much is going in, how much is going out, and its growth. Most personal finance software programs will display your budget, spending, investments, bills, savings accounts, and even retirement plans, levels of debt, and credit score.

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How It Leads to Financial Improvement

It shouldn’t come as a surprise, but people who regularly monitor their finances end up wealthier than those who don’t. When you were a kid, keeping track of all of your money in a porcelain piggy bank was pretty easy. As we get older, though, our money becomes spread out across things like car payments, mortgages, retirement funds, taxes, and other investments and debts. All of these things make keeping track of our money a lot more complicated.

Some types of personal finance software can help make things a little less complicated, setting you up to meet financial goals and taking away some of the stress associated with money.

Even if you already have a Certified Financial Planner (CFP) some type of personal finance software can be of great benefit. Whereas CFPs focus on the big picture of your money, they don’t handle the day-to-day aspects that determine your overall financial health.

It’s also not nearly as complicated as you might think and can take out a lot of the tedium that comes with doing everything on an Excel spreadsheet or with a pad and pencil.

Types of Personal Finance Software

When it comes to personal finance software, it generally fits into two categories: tax preparation and money management.

Tax preparation software such as Turbo Tax and H&R Block’s software can help with everything from filing income taxes to IRS rules and regulations and even estate plans. Plus, there’s the benefit of filing online and getting your refund check a lot faster than if you were to mail off your forms after waiting in line at the post office.

For the purpose of this article, however, will be focusing more on the personal finance software that aids with money management.

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Money management personal finance software will help you to see the health of your cash flow, pay down debt, forecast for expenses and savings, track investments, pay bills, and do a host of other things that 30 years ago would have practically required a team of accountants.

When to Use Personal Finance Software

So far we’ve gone over what exactly personal finance software is and how it can be a benefit to your money. The next logical step in this whole equation is determining when it should be used and how is the best way to go about getting started using it.

Below are four of the most common and practical ways to use personal finance software. If all or any of these apply to you and your money, then downloading some type of personal finance software is going to be a smart move.

1. You Have Multiple Accounts

There’s a good chance that when it comes to your money, it’s in more than one place. Sure, you probably have a checking account, but you may also have a savings account, money market account, and retirement accounts such as an IRA or 401k.

If you’re like the average American, you probably have two to three credit cards as well. Fifty percent of Americans also don’t have loyalty to just one bank and spread their money across multiple banks.

Rather than spending hours typing in every detail of every account you have into a spreadsheet, many programs allow you to easily import your account information. This will help to eliminate any mistakes and give you a bird’s eye view of everything at once.

2. You Want to Automate Some or All of Your Payments

Please don’t say that you’re still writing out paper checks and dropping each bill in the mailbox. While it’s noble that you’re doing your part to keep postal workers employed, we’re 18 years into the 21st century and you can literally pay every bill online now.

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There’s no need to log into every account you have and type in your routing number either.

With personal finance software you can schedule automatic payments and transfers between all of your imported accounts. Automatic transfers will help to make sure you have the necessary funds in the right account to ensure all bills are paid on the appropriate date. Late fees are annoying and do nothing but cost you money. It’s time that you said goodbye to them once and for all.

3. You Need to Streamline Your Budget

Perhaps the best feature of personal finance software is that it allows you track everything going in and out of your virtual wallet.

Nearly every brand of personal finance software out there has easy-to-read graphs and charts that allow you track every cent you spend or earn, should you choose. You might be pretty amazed when you see just how much you spent on eating out last month or if you splurged a little more than you should have on Christmas gifts last year.

Every successful business on the planet has a budget and using personal finance software can help you trim the fat on your spending in ways that affect your everyday life.

4. You Have Specific Goals to Meet

Maybe it’s paying off debt or saving for up something like a European vacation. Whatever your financial goal is, whether it’s long-term or short-term, personal finance software programs are one of the savviest ways to go about reaching those goals.

You can do everything from set spending alerts to notify you when you’re over budget to automating what percentage of your paycheck goes to things like retirement investments. The personal finance software that you choose should show you exactly how close you are to hitting those goals at any given time.

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How to Get Started

From AceMoney to Mint and Quicken, there ’s no shortage of personal finance software apps out there. Many of these programs are free to download and will allow you to pay bills, invest, monitor your net worth and credit profile, and even get a loan with the swipe of a finger.

Other programs may only offer you limited services and will require a one-time fee or subscription to unlock all that they offer. These fees can often vary from as little as two dollars to 50 bucks a month.

It’s best to start off with the free version and then gauge whether you’re able to accomplish everything you’d like or if it’s worth exploring one of the paid options. Often times the subscription programs come with assistance from financial planning and investment experts — so that can be a real benefit.

When deciding which personal finance software program to use, it’s also important to look at how many accounts you wish to monitor. Certain programs limit the number of accounts you can add. Be sure that if you have checking, credit card, and investment accounts to monitor, that you choose a service that can monitor them all.

Finally, when looking around for the right personal finance software that meets your needs, make sure that you’re comfortable with the program’s interface. It shouldn’t be expected that you recognize every single feature instantly, but if the features don’t seem readable and manageable to you, then you’re not as likely to use it and get the full benefits.

Final Thoughts

Personal finance software can go a long way in helping you to take control of your money and meeting your financial goals. It’s important to note, however, that some focus more on budgeting and expense tracking while others prioritize investing portfolios and income taxes. Explore several different programs and read reviews to find the one that’s right for you.

In this day and age, managing one’s personal finances in a secure manner that allows the user to have a real-time visual representation of their money is easier than ever before. With the numerous applications that are out there — both free and subscription-based — there’s no reason that every person can’t take control of their money and ensure they’re making smart money moves.

Featured photo credit: rawpixel via unsplash.com

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