How to be among the Top 5% that make it in forex market?
Forex is a short term for financial market. Forex simply means buying and selling of currencies of different countries of the world. Forex is one of the largest markets in the whole world with about 4 trillion dollars turn over daily. Despite this larger amount of money in Forex, only 5% becomes successful in this profession. Most Forex trainers will teach you the art of trading without telling you how to be among the top 5% that makes it in Forex. financial market has been a great Avenue to be financially free but only few individuals in Nigeria knows about this great opportunity. The irony of the whole issue is that, even among the new traders in Nigeria, only 2% are successful. I'm going to dish out some of the costly mistakes of new Traders and also the old Traders and how to avoid such mistakes.To get more news about WikiFX, you can visit wikifx official website.
1. Poor Orientation About Financial Market:proper orientation is very vital for any business to succeed. You must know how a company works for you to be successful. Having a large amount of money to invest in forex market is not a enough reason to start trading immediately. Most Traders fails because of erroneous information been passed to them my fellow Traders who are also failures in the industry. Some of the bad orientations are: turning $100 to $2000 within a week, two days of forex seminar is enough to be a professional forex Trader, nobody makes it in forex market and lastly going on live account without practicing on demo account. As a new Trader, you should do enough research about the industry before starting the journey. Because, if the foundation is destroyed there's nothing you can do. This orientation can be acquired from a reputable forex broker, mentors and reading books on Forex. In Nigeria, some Forex brokers offers free seminars and you can make use of the opportunity to ask them questions about the market and how it works. This will give you an edge as a new Trader and to be successful.
2.Spending Limited Time on Demo Account:demo account is meant to help you practice and perfect your trading strategy before moving to Live account. Most brokers do offer a free demo account for their clients. One of the major mistakes new traders make is to spend just few days or weeks on demo account then move to Live account immediately. Demo account helps you to get familiar with the trading application and the business environment. Apart from getting familiar with the market environment, you also perfect your trading strategy before going live. Even old Traders that are intending to develop a new strategy, should use a demo account to perfect it before using the strategy on live account. It also helps to build and develop a strong psychology that will be of a great help when you start trading Live account.
3.Poor Trading Plan:Forex is like any other business that requires a concrete plan. Before you start a restaurant business, you need to plan the location of your restaurant, the kind of meal that you'll be offering your customers, types of chair and table to use in the restaurant, and other stuffs. The same thing applies to Forex market. Forex is a serious business and it should be treated as such. Your training plans should consist of the strategy to be used, entry rules, exit rules, risk management and personal journal to record all of your trades. Most Traders lack the ability to develop an effective trading plan and to follow the plan accordingly. Without a trading plan, all you will be doing in the market is gambling. Without entry rules you might enter the market late or without exit rules, your positive trades my turn to negative. Also, without proper risk management, there's 90% chance that you will blow out your account. Before each trading day, go through your trading plan to avoid mistakes. It also helps you to keep your emotions in balance. I will advise you develop a strong trading plans before trading.