Forex Trading – What You Need To Note

Obtaining the right information is an essential must for traders to be profit consistently and successful long-term. 

This applies not just to trading but all areas of life.

Such as schools, military, workplace as employee or entrepreneur. 

Because right information is what enables you and others to perform at highest peak besides teamwork. 

For example, in schools, you need the right education and tools to do well in your homework, tests and examinations individually and projects as a duo or team of 3, 4 and more persons. 

in the military, making the right decisions during war or even during peacetime is critical to save and protect lives. 

In work it is necessary to function in backend such as admin, design, technical and deliver your products and services in sales and customer service. 

In business, it is vital to get along with your business partners, investors and staff so as to keep your operations ongoing. 

That brings us back to trading. 

I do not know much about stocks, options, commodities and cryptocurrency which I am still learning at time of writing this. 

But I can tell you what I know about Forex. 

While it is the easiest to trade and make money, it carries high risks as with all other investments. 

Simply knowing the basics and fundamentals such as what is Forex, why it is the best market with trillions of dollars transacted, how to set up broker accounts are simply not enough. 

If you signed up for a seminar or webinar in which the speaker only offers these in their courses with coaching upsells, I will urge you to think twice before investing your hard-earned money. 

Especially those that costs $2000 to $3000 plus that is only for courses and making the educators rich. 

On top of your trading capital which you need to fork out another $1000, $2000 to $3000. 

Moreover, all those basics can be found on TikTok and Youtube free videos.  

What you need is the right trading strategy and mindset based on your personality and risk-to-reward appetite based on your current capital and finances. 

Along with the right community that understands and respects you for your background and choices. 

Even though there is no hard and fast one-size-fits-all strategy for everyone that those gurus make out just to get attention and money from people like you and me. 

Having been in this Forex trading for a year now, I came to realize slowly that there are 4 types of traders as in scalpers, day, swing and position size traders. 

1. Scalpers 

Scalpers are those who just want to enter the market, make quick big bucks and exit quickly in minutes or even seconds especially during major new events such as CPI, FOMC, NFP and PPI etc. 

From my experience talking with them, most have zero patience on holding on to their trades for an hour let alone a day. 

2. Day Traders

Day traders are those who placed trades and expect to make profits in 1 or 2 days as the heading implies. 

They don’t mind holding on to their trades over the weekend if they buy or sell on Fridays when markets are slow since everyone is looking forward to celebrate weekend. 

3. Swing Traders 

Swing traders are those who can hold on to their trades for days, weeks and even months. 

Even when trading say at 0.01 or 0.02 micro-lots, the return of investments can range from $10 to even $100 since they are going for usually 500, 1000 and more pips over the longer time frame. 

4. Position Size Traders 

Position size traders are those with huge capital and have plenty of money to play with in the long run. 

They can place trades at 1000, 5000 or even 10,000 pips and above while holding on for weeks, months or even years. 

They are usually rich business owners or those working in major financial banks and institutions. 

Having understood what I shared, you should consider your options besides just trading to make money. 

Because different people have different backgrounds, financial situations, mindsets, and risk appetite in trading. 

You may not see those when meeting them for first time but you will over time in not just what they say but how they trade. 

That goes along with fundamental and technical analysis I already shared in my other articles so I am not going to repeat here. 

But whether you are new or even been trading for some time, you need the right information to come up with strategy that best fits your personality and risk-to-reward management in your trades.