Forex is a ‘game’ played by millions across the globe. Unfortunately, the majority fail and hit game over but why?
Dont fall into the trap. For many people trading Forex seems like a game – gambling as such. Many do not differentiate it from going down to the bookies and having a pop at betting on the horses or a football match. However, Forex trading could not be further from this, one of the world’s largest investors – Warren Buffett once famously said: ‘Trading is a game where the odds are in your favour’. Essentially, you do not want to be a gambler when entering the Forex Market. You want to be the one in control and have the house edge. Now, let’s stray away from thinking of Forex as a game that is played and more like a business that is strategized.
Why do you want to start?
We speak for the majority when the reason for starting to trade is to make money. People rely on trading to provide a secondary or primary income while at home. A lot, may be looking at trading to provide a buffer – money they can lean back on. It is no secret that the Western pension system that has been in place since the 1970’s has failed. People are being forced to retire at older ages, the European and U.S average pensions are not adequate enough, pensions around Asia and Africa can be non-existent. So what can we do?
If you are reading this you are more than likely, a retail trader, like the most of us. Unfortunately, we are at the bottom of the Forex food chain, with trading houses, funds and big institutions like banks all preying on us. You have to realise, as a retail trader, that you have no influence on the market. Market direction is largely controlled by fundamentals (economic data) and big institutions which pump billions and trillions of dollars into the market.
When you begin your Forex journey, you want to keep in mind that you want to function like a business. In trading you need to have a trading plan, otherwise you will have no clear vision of what you want to do or where you want to go. You also need to manage your capital or investment. You need to manage your risk and keep tabs on accounting for your capital. Furthermore, you need to do your market research. You need to investigate on economy health and data releases to gain an idea about the underlying fundamentals that can impact your trading. Additionally, you will have to research into your own trading and establish what methods and assets works best for you.
This is just a brief overview to start off our blogging journey. Later on in the series we will be going into further detail about aspects mentioned in this blog and also cover other elements of trading. Stay tuned!
If you have any ideas or areas you want us to cover in our blogs, get in touch with us!
NoBull Trading Group.