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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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Published on November 20, 2018

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The truth is, there are many “money saving guides” online, but most don’t cover the root issue for not saving.

Once I’d discovered a few key factors that allowed me to save 10k in one year, I realized why most articles couldn’t help me. The problem is that even with the right strategies you can still fail to save money. You need to have the right systems in place and the right mindset.

In this guide, I’ll cover the best ways to save money — practical yet powerful steps you can take to start saving more. It won’t be easy but with hard work, I’m confident you’ll be able to save more money–even if you’re an impulsive spender.

Why Your Past Prevents You from Saving Money

Are you constantly thinking about your financial mistakes?

If so, these thoughts are holding you back from saving.

I get it, you wish you could go back in time to avoid your financial downfalls. But dwelling over your past will only rob you from your future. Instead, reflect on your mistakes and ask yourself what lessons you can learn from them.

It wasn’t easy for me to accept that I had accumulated thousands of dollars in credit card debt. Once I did, I started heading in the right direction. Embrace your past failures and use them as an opportunity to set new financial goals.

For example, after accepting that you’re thousands of dollars in debt create a plan to be debt free in a year or two. This way when you’ll be at peace even when you get negative thoughts about your finances. Now you can focus more time on saving and less on your past financial mistakes.

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How to Effortlessly Track Your Spending

Stop manually tracking your spending.

Leverage powerful analytic tools such as Personal Capital and these money management apps to do the work for you. This tool has worked for me and has kept me motivated to why I’m saving in the first place. Once you login to your Personal Capital dashboard, you’re able to view your net worth.

When I’d first signed up with Personal Capital, I had a negative net worth, but this motivated me to save more. With this tool, you can also view your spending patterns, expenses, and how much money you’re saving.

Use your net worth as your north star to saving more. Whenever you experience financial setbacks, view how far you’ve come along. Saving money is only half the battle, being consistent is the other half.

The Truth on Why You Keep Failing

Saving money isn’t sexy. If it was, wouldn’t everyone be doing it?

Some people are natural savers, but most are impulsive spenders. Instead of denying that you’re an impulsive spender, embrace it.

Don’t try to save 60 to 70% of your income if this means you’ll live a miserable life. Saving money isn’t a race but a marathon. You’re saving for retirement and for large purchases.

If you’re currently having a hard time saving, start spending more money on nice things. This may sound counterintuitive but hear me out. Wouldn’t it be better to save $200 each month for 12 months instead of $500 for 3 months?

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Most people run into trouble because they create budgets that set them up for failure. This system won’t work for those who are frugal, but chances are they don’t need help saving. This system is for those who can’t save money and need to be rewarded for their hard work.

Only because you’re buying nice things doesn’t mean that you’ll save less. Here are some rules you should have in place:

  1. Save more than 50% of your available money (after expenses)
  2. Only buy nice things after saving
  3. Automate your savings with automatic bank transfers

These are the same rules that helped me save thousands each year while buying the latest iPhone. Focus only on items that are important to you. Remember, you can afford anything but not everything.

How to Foolproof Yourself out of Debt

Personal finance is a game. On one end, you’re earning money; and on the to other, you’re saving. But what ends up counting in the end isn’t how much you earn but how much you save. Research shows that about 60% of Americans spend more than they save.[1]

So how can you separate yourself from the 60%?

By not accumulating more debt. This way you’ll have more money to save and avoid having more financial obligations. A great way to stop accumulating debt is using cash to pay for all your transactions.

This will be challenging, depending on how reliant you are with your credit card, but it’s worth the effort. Not only will you stop accruing debt, but you’ll also be more conscious with what you buy.

For example, you’ll think twice about purchasing a new $200 headphone despite having the cash to buy them. According to a poll conducted by The CreditCards.com, 5 out of 6 Americans are impulsive spenders.[2]

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Telling yourself that you’ll have the discipline to not buy things won’t cut it. This is equal to having junk food in your fridge while trying to eat healthy–it’s only a matter of time before you slip. By using cash to make your purchases, you’ll spend less and save more.

A Proven Formula to Skyrocket Your Savings

Having proven systems in place to help you save more is important, but they’re not the best way to save money.

You can search for dozens of ways to save money, but there’ll always be a limit. Instead of spending the majority of your effort saving, look for ways to increase your income. The truth is that once you have the right systems in place, saving is easy.

What’s challenging is earning more money. There are many routes you can take to achieve this. For example, you can work long and hard at your current job to earn a raise. But there’s one problem–you’re depending on someone else to give you a raise.

Your company will have to have the budget, and you’ll have to know how to toot your own horn to get this raise. This isn’t to say that earning a raise is impossible, but things are better when you’re in control right? That’s why building a side-hustle is the best way to increase your income.

Think of your side-hustle as a part-time job doing something you enjoy. You can sell items on eBay for a profit, or design websites for small businesses. Building a side-hustle will be on the hardest things you’ll do, be too stubborn to quit.

During the early stages, you won’t be making money and that’s okay. Since you already have a source of income, you won’t be dependent on your side-hustle to pay for your expenses. Depending on how much time you invest in your side-hustle, it can one day replace your current income.

Whatever route you take, focus more on earning and save as much as possible. You have more control than you give yourself credit for.

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Transform Yourself into a Saving Money Machine

Saving money isn’t complicated but it’s one of the hardest things you’ll do.

By learning from your mistakes and rewarding yourself after saving you’ll save more. What would you do with an extra $200 or $500 each month? To some, this is life-changing money that can improve the quality of their lives.

The truth is saving money is an art. Save too much and you’ll quit, but save too little and you’ll pay for the consequences in the future. Saving money takes effort and having the right systems in place.

Imagine if you’d started saving an extra $100 this next month? Or, saved $20K in one year? Although it’s hard to imagine, this can be your reality if you follow the principles covered in this guide.

Take a moment to brainstorm which goals you’d be able to reach if you had extra money each month. Use these goals as motivation to help you stay on track on your journey to saving more. If I was able to save thousands of dollars with little guidance, imagine what you’ll be able to do.

What are you waiting for? Go and start saving money, the sky is your limit.

Featured photo credit: rawpixel via unsplash.com

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