Let’s discuss what may be the most fundamental principle when deciding to invest in Forex, setting a rational budget, and more importantly sticking to that budget. We will be going through the tricks of the trade and get down to what the secrets to successful trading all the while finding ways to minimize risk and potential pitfalls.
First and foremost, it's important to evaluate your current financial situation and
evaluate what amount of funds you are able to set aside to invest. Everyone is at a
different level financially, so you should not compare your funds against someone else's.
What's important is that you’ve taken the first step in having your money work for you, and not just you, for it. So, the first step is to evaluate your personal finances and set aside an amount of money that won't affect you being able to maintain your current lifestyle. The next principle to keep in mind is to make sure you create realistic profit targets.
Greed can be your worst enemy, and by creating a trading strategy with unachievable profit targets will end up setting yourself up for failure. Some of the most successful individuals started from nothing, and eventually amassed massive fortunes, the same principle can be applied here, which is that consistent returns, while they may be smaller at first, will gradually grow to amass a large portfolio if properly planned out.
#DYOR (do your own research)
You may have come across a post on one of the social networks that said something
along the lines of “I have $100 and am looking to invest in reliable Forex trading signal providers” - this is a perfect example of poor research. Remember that when you’re looking to invest your hard-earned capital, that no one will work as hard yourself to ensure that your investment is a success, so it's important that you follow through on due diligence and put in the time to research the best available options that will lead you investment on a path of success.
Low Capital | Low Risk
Despite what you may read, there are actually many benefits to trading with a minimal amount of capital instead of jumping in feet first. First and foremost, by using a smaller amount of capital you are minimizing the potential for large losses and thus allow yourself time to familiarize yourself with the market. Which leads to the second advantage which is generating an effective trading strategy. By testing the waters with a small amount of capital you allow yourself to be more flexible and dynamic. You allow yourself the ability to tweak and test different trading strategies, until you find one that best suits your preferred risk / reward ratio.
Measure twice - Cut once
Now that we’ve evaluated your investment capital, set attainable profit targets, and
covered the advantages of starting off with a small amount of capital. It’s time to start trading, right? Wrong! What you really should be doing is finding a way to test out potential trading strategies without an actual investment. Thankfully you can execute this using DupliTrade’s trading simulator, which allows you to familiarize and test out strategies without investing real capital.
Last but certainly not least...
Once you’ve familiarized yourself with the various tools and strategies, it's time to add a little A.I. into the equation. Look into automated trading platforms and Strategy providers or EAs, which allow you minimize risk while saving you time. Finding a reliable source for these products, services and information can be tricky, so be sure you're getting your information from reputable sources. Look into trusted companies like DupliTrade and the various trading tools that are offered.
Be sure to research the numerous tips and tools that they provide in the form of
strategy providers. Test your trading strategies in order to build a successful portfolio, and be sure to use small capital to test those tools and minimize loss potential. And last but certainly not least, try, and try and try again! Because as you continue to navigate the world of Forex, and your knowledge of the industry grows, you will begin to understand that you can learn just as much from a pitfall as you can from a successful trade and research, or more importantly gaining knowledge, is the key to success.
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