Forex trading can be tricky for many. But again, if you want to learn something new, it’s going to look tricky in the beginning. A year into Forex trading is enough to give you an idea about what to do and what to avoid. Here are a few lessons that you should learn after a year of Forex trading:
1. Being consistently patient
The first thing that you learn after a year of Forex trading is to hold your nerves and your patience. This is like an edge-of-the-seat thriller that keeps you on your toes throughout the trade. In fact, most pro-level traders would suggest that you should practice being patient all the time. If you expect to hit the jackpot on your first trade, Forex is not for you. Some traders wait for years to understand how the market works. If they have had the patience to wait, so should you.
2. Sticking to your plan
The thumb rule for Forex trading is to follow what works best for you. Many traders try to read about different strategies they can use to gain an advantage, but they might find a different picture while trading. Of course, reading about different strategies may work, but that’s not always the case. You need to spend a considerable amount of time to figure out which plan works for your trades. It is not necessary to have your hands full with trades that you don’t have too much knowledge of. Stick to your plan and let things work at its own pace.
3. Managing risks
Many websites talk about the different ways you can make money from Forex trading. But few will discuss the ways to practice risk management. Forex Academy, for one, is almost like an institution where you can learn more about risk management in Forex trading. The idea is simple. Forex trading is about where you are putting your money to get a better ROI. Although a year is enough to understand the tricks of the trade, you can never let your guard down. That’s why risk management is so crucial in this trade.
4. Following your own strategy
Just because you and your friend started trading the same day doesn’t mean you have to follow his/her strategies. This is a race that you need to run on your own. Comparing your performances with others is often tempting, but you shouldn’t judge based on their success or failures. The objective here is consistent learning. Whether it is one year or ten years, the more you learn, the more experienced you become.
5. Trading according to the situation
Another thumb rule you should learn by now is to trade according to the market conditions and not by what you think. Different Forex events can fluctuate the prices of different currencies. The biggest lesson in this would be to expect not to expect anything from the market.
Some say a year in Forex trading is enough; some say six months is your honeymoon period. Honestly, there is no specific time within which you can get guaranteed success. Your objective is to learn every day. So, stay hungry, stay foolish.