In the Forex currency market, one of the main roles is played by a trader, or a trader, literally translated from English (trade – to trade). From the meaning of this word, it is clear that the main duties of a trader are trading, buying and selling. Traders can buy and sell futures, options, stocks, commodities, etc. But in the Forex market, traders buy and sell only and only currencies.
Traders can be professional and amateur. Professionals are those specially trained and prepared for this profession, as a rule, working in banks, investment funds, analytical companies, etc. Amateurs are everyone, regardless of age, education and work experience, who wants to receive income from the purchase and sale of currency.
Today, a lot of amateur traders rushed to the World Wide Web in order to exaggerate their income many times over. But most of them, after a certain time, leave this market with nothing. This is because the work of a trader is not as easy as it might seem at first glance. This is a very painstaking, hard mental work that requires a lot of time, and most importantly, patience.
As it has already become clear, the task of a trader is trading. Let’s understand some of the nuances of this task in order not to make mistakes and not be beyond the scope of this amazing and full of possibilities of the Forex currency market.
Many amateurs try to rely purely on their luck and intuition, instead of trying to improve their knowledge in the field of trading. Intuition is certainly a good thing, but the Forex market requires us to have analytical thinking, knowledge of the intricacies of trading on the currency exchange, knowledge of technical and fundamental analysis.
The process of trading itself from start to finish is difficult to describe completely, as it is huge. It all starts with the choice of a dealer (broker) and ends with the transfer of money to your account or, conversely, withdrawing it from your account.
Each trader has his own organization of the trading process, and in order for this process to be more positive and fruitful, special attention should be paid to its organization.
Here are a few criteria to consider for yourself:
- the amount you want to start trading with or perhaps always trade. It is worth remembering here that the more money you bet, the greater the risk that you will lose it – this can negatively affect your emotions. Beginners are not always able to adequately respond to losses. A successful trader knows the price of discipline;
- the time you will enter and exit the market. As a rule, most beginners do not pay attention to this at all, they don’t care when they enter and exit, they go to trade in order to trade. But in fact, even the time interval needs to be analyzed. You need to roughly estimate the time limits of your stay in the market. It is also necessary to take into account the time of entering the market of currency giants (transactions of this magnitude always create a surge in prices);
- leverage size. Margin trading offers huge opportunities for the trader, but it is always necessary to evaluate your capabilities and create positions that allow you to re-enter the market in case of loss, and not deprive yourself of just 1 unsuccessful trade;
- market condition. It is always necessary to monitor the state of the market, as it is always changing, it can be a surge of activity due to the arrival of financial giants on the market, or vice versa, a lull, waiting for news from analytical departments. You can listen to their predictions, or you can make your own.
- standard trading methods. There are certain standards of action for traders in the market. Many are moving away from the standards and do it according to their own scheme, while others do not take risks and do it like everyone else. What to choose is everyone’s business. But newcomers should still adhere to the standards, so it is more likely that the result will be positive.
The most important thing in Forex trading is to understand the seriousness and complexity of this process. Many achieve success, but only a small part of the majority that come and go daily, never returning. To learn how to live the life of the Forex currency market, you need to study it, constantly study, constantly analyze, follow everything that happens. Discipline, patience, perseverance and diligence – and you will definitely succeed in the Forex market!