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6 Key Factors to Know before Investing in Forex Trading

6 Key Factors to Know before Investing in Forex Trading

It is important that you have all the necessary information before you start to invest in anything. Just like any other business you have to be careful while becoming a forex trader. It is a challenging and competitive industry. It is important that you are confident and you understand the risks which are involved in investing in the forex industry. If you are not careful, you can become a victim of Forex and end up losing a lot of money.

Here are some of the tips which are highly helpful in becoming a successful Forex trader.

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1. Make sure you understand your needs:

If you want to become a successful trader, then the most important thing is to understand your market. Recognizing the demands of your industry is essential. Knowing the industry will also help you in recognizing your limits and needs. You need to know if you have risk tolerance or the required capital for forex. Make sure that your money is not short or excessive. Analyzing your financial goals is essential for getting involved in forex trading.

2. Do not overestimate importance of planning:

Once you get an understanding of the industry, the next step is to make sure that you have a clear roadmap of what you want to do. Having a working plan is essential for a successful trading career. You need to define your goals so that you know what your achievements are and what your failures are. You need to have a timeframe. It is ok to experiment with different things because there are no hard rules and it is a trial and error process. You need to know how much time you can spend on your trading or financial independence or generate extra income etc. You should have a clear picture of what you need to do.

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3. Be careful about the broker you choose:

Most of the people who are new to the trading often forget to include choosing the right agent in your forex trading strategy. You should always be aware of brokers who are unreliable. It is essential that the level of your expertise can match the goals that the broker has offered.

4. You need to have the right attitude:

Your success depends on a lot on the attitude you have towards the trading business. Having the right mindset will help you in making the right decisions. Understanding the business will assist in developing the right attitude. You will understand the importance of patience. It is not wise to rush into things because it ends up you making hasty and wrong decisions. Discipline is also another trait which is important. You do not just have to wait for the right moment you also need to be prepared for it. You need to develop a system that offers objectivity. Being realistic is also the key to success. Set goals which are achievable. Setting unrealistic goals will only result in failure. It is good to be ambitious but being over confident is bad for business.

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5. Always start small:

If you want to become a successful forex trader, then you need to understand that there is nothing wrong with starting small. Starting small will mean that there is low leverage and it helps in generating more profits. Investing large will result in higher profits, but in the beginning, it is just too much risk. You can increase the size of your trading with time.

6. Analyze your performance:

It is important that you pay attention to your successes and failures. You need to have an analytical approach and keep a look at the technical and fundamental analysis of trends. You need to learn from everything that you have done. You should know whether you have been able to achieve your goals or not. By looking at your failures and successes, you will know which strategies are right for you and which are not working out.mportance of determination and persistence.

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If you want to succeed in Forex trading, you need to understand the importance of determination and persistence. You should not expect to become a trading genius overnight. You need to give your skills sometimes to develop, and you will be able to have a successful trading career.

Featured photo credit: Kim Krompass via kimkrompass.com

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Adnan Manzoor

Data Analyst & Life Coach

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Last Updated on November 19, 2018

How to Find a Suitable Professional Mentor

How to Find a Suitable Professional Mentor

I went through a personal experience that acted as a catalyst for an epiphany. When I got fired from a job, I learned something important about myself and where I was headed with my freelance career. I realized that the most important aspect of that one rather small job was the influence of the company owner. I realized that I wasn’t hurt that the company and I weren’t a perfect match; I was devastated by the stark fact that I needed a mentor and I had almost found one but lost her.

Suddenly, I felt like J.D., the main character in “Scrubs,” chasing Dr. Cox and trying to rip insight and wisdom from someone I respect. The realization that a recognized thought-leader and experienced entrepreneur severed ties with me felt crushing. But, I picked myself back up and thought about five ways to acquire a mentor without having the awkwardness of outright asking.

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1. Remember, a professional mentorship must be mutual.

A professional mentor must agree to engage in a mutual relationship because, as the comedy T.V. series showed us, one simply cannot force someone to tutor us. We have to prove that we are worth the time investment through persistence and dedication to the craft.

2. You have to have common interests with your mentor.

Even if a professional mentor appears at your job or school, realize that unless you and this person have common interests, you won’t find the relationship successful. I’ve been in situations where someone I respected had vastly different ideas about what was important in life or what one should spend his or her free time doing. If these things don’t line up, you may find the relationship won’t be as fruitful, even when the mentor knows a great deal about one industry.

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3. Thought-leaders will respect your passion.

One of the ways you can prove yourself worthy to a professional mentor is through your passion and your dedication. No one wants to spend time grooming and teaching another who will not take advice or put the effort in to improve. When following thought-leaders on Twitter and trying to engage with higher-ups in a work setting, realize that your actions most often speak louder than your words.

4. Before worrying if he respects you, ask if you respect him.

On the other side of the coin, you should seriously reflect on those common interests and make sure you respect your professional mentor. Just because someone holds a title, degree or office does not mean that person is trustworthy or honest. Don’t be swayed by appearances and take the time to find a suitable professional mentor.

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5. Failure is often the best way to learn

I honestly have made more mistakes than I can count. I know I’ve learned a great deal from poorly organized businesses and my own poor choices. The most important quality I’ve developed is an ability to swallow my pride and learn from my mistakes. If life knocks me down nine times, I get back up 10 times. One of the songs Megadeth wrote, “Of Mice and Men,” resonates in my mind when I pull myself up by my bootstraps and try again for a goal I’ve set: “So live your life and live it well. There’s not much left of me to tell. I just got back up each time I fell.” Hopefully, this brief post can act as a professional mentor to you in your quest to find not only a brave leader but also a trusted adviser.

Featured photo credit: morguefile via mrg.bz

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