10 Must-Do Steps Before Investing in Forex Trading

Forex Trading is a complex activity. It is not possible to improvise as an investor. Or rather, one can try, but the results are always dismal. It requires a lot of study and preparation. Beyond the technical aspect, which nevertheless represents a good part of the apprenticeship, another phase must be considered, even more preparatory. It is articulated in various steps, or rather in the realization of a to-do list that concerns crucial topics such as mentality, approach, etc. In this article, we present this to-do list, that is, the 10 things to do before even starting to think about investing in Forex Trading.

Create Economic Security

Those who aspire to become a Forex trader often start from the wrong approach. That is, they think of trading as the solution to their economic problems, therefore as an enrichment tool like winning a game. Well, this is the wrong approach, potentially "lethal". Firstly, because trading is a difficult activity in which few succeed. Secondly, because if you start on the wrong foot, you don't run the risk of losing something, but of losing everything. So, if you are thinking of doing Forex trading, first of all, create an economic base, a security, which allows you to move forward and continue with your daily life even if the Forex adventure does not end well. It takes really little. For example... A job. In any case, never let Forex Trading become a survival tool for you.

Verify If You Have the Aptitude

According to the advertisements that crowd the internet, Forex Trading is a mass activity. This is not exactly false... But it's not exactly true either. It's true that everyone, if included in an effective training path, can try to trade, but it's also true that only some are 100% suited, that is, they have a background and a character base that marries well with the dynamics of this activity. Sure, if you don't recognize yourself in the ideal-type of the trader, it's not worth throwing in the towel before you start, however it's certainly an indicator to keep an eye on. So, how to verify if you have the aptitude? It's enough to do a small self-examination. If you are disciplined, have willpower, resist stress well, are determined, have a cool head and learn quickly.... Yes, trading is for you. Otherwise, simply commit yourself even more during the training path and fill in the most important gaps.

Strengthen the Spirit

If you have realized that you do not belong to the category of people just described, do not despair: you can always improve. Not that it's an easy process, far from it: learning to do things is one thing, being is another. Nothing impossible, however, if you don't set yourself a goal that is too arduous. Although, in reality, some mental qualities are only refined with practice. In the meantime, you can spend your time with simple autogenic training, but also with the practice, in everyday life, of the virtues that are good for trading. The reference is above all to discipline, which is the most important quality among the important qualities.

Carve Out Time

This indication is linked to the first. Forex Trading, at least until the beginning or until you have become a real professional, should not be a primary activity, or rather your main activity. The perspective is that of a basic economic security that disregards what could happen to you while trading. However, trading activity can be considered as if it were a second job. This dimension is functional to achieving results, as it does not give the investment more importance than necessary, but at the same time allows you to consider it as a "serious thing". Preparatory to this mental step is the question of time. Before starting, carve out a part of the day for trading, as if it were a hobby you particularly care about. A few hours are enough, as long as it represents a stable appointment.

Forget Gambling

This is a very important step. Aspiring traders who fail first, and above all fail in a disastrous way, generally skip this step. It is the first step to guarantee a functional approach to results, to put yourself in a position to perceive trading in the most exact way. Trading has nothing, absolutely nothing to do with gambling. On a purely intellectual level, this is a truth that everyone is able to learn, and moreover immediately. But one thing is understanding the rule, another thing is internalizing it. Well, you need to internalize the awareness that Forex Trading and gambling are two distinct and distant worlds. Otherwise, you will run the risk of using a "gambling" approach even if you know it is not right. This usually happens in the most hectic phases, when lucidity risks being lost.

Understand Trading

Working on yourself is important, but it is not the only thing to do if you intend to arrive prepared as a person and not just as a trader at the market appointment. In addition to a series of approaches that concern one's relationship with trading, it is also necessary to internalize the dynamics of trading itself. Obviously, most of the work, in this sense, is done during the training path, but a portion is also the prerogative of this sort of "anteroom", of this "more than preparatory" phase. In short, it is necessary to understand what trading really is, and specifically Forex Trading. In words it is easy to explain, but, again, it is not a matter of learning a concept but of internalizing it. It is necessary to realize at a deep level that trading is a complex activity, which requires commitment, study, attention, moral qualities, etc.

Be Aware of Defeat

It is probably the most difficult step to take. It consists, in fact, in internalizing that the worst of the hypotheses is not only not impossible, but is also probable in some ways. Of course, one hopes, in a non-definitive and irreversible version. But nevertheless: defeat in trading, and especially in Forex Trading, if it is not exactly the daily bread of each trader, it is not far from it. It is necessary to understand that defeat is part of the game. Above all, it is good to understand that defeat is never an irreversible and definitive event. Provided, of course, that the necessary precautions have been taken, that you are practicing good risk and money management. These two elements, however, concern an advanced stage of preparation. In this, which represents the very first step, it is sufficient to internalize the concept of defeat as an ordinary and, unfortunately, irremovable element.

Don't Delude Yourself

It is the step just after. Once the "evil" or rather the danger that lurks in an activity that from the outside certainly appears adrenaline-pumping has been understood, it is good to make a slightly complicated reasoning: it is not certain that the adventure in trading, even if a certain slowness were admitted, foresees the stages that one imagined at the beginning. It could all end immediately, and badly; it could develop in a somewhat linear way. Of course, the shadow of failure remains, the abyss is around the corner. The statistics say it: 85% of traders end the calendar year at a loss. So, there is nothing - absolutely nothing - to be taken for granted. However, the other side of the coin must also be mentioned, namely victory. It is obvious that, in light of so many losers, those who win risk winning big.

Learn the Theory

The last two steps are operational. One enters, so to speak, into what can be defined as the training period of Forex trading. The training period begins with theory. This portion of the road is long and incredibly difficult, even if the difficulty depends on the degree of initial preparation. There are those who, by study or work or personal interest, have an inkling about the mechanisms of the investment world. There are those who are completely blank. In any case, the training path must be well organized, developed according to the general-particular guideline. That is, it is good to start from general concepts and then arrive at the details. First of all, therefore, the context must be understood. The advice is to dedicate at least a couple of hours of work to study, to integrate the great classics of trading reading but at the same time to use all possible channels: blogs, forums, video courses, seminars, etc.

Practice

It is the very last step, the one that transforms an aspiring trader into a trader... A beginner, of course, but still a trader. In principle, one might think that practicing means throwing oneself into the fray, risking as much as others risk. A dangerous choice, since arriving unprepared not 100% for the market appointment means risking losing a lot. Luckily, for some years now brokers have found the solution: demo accounts. Brokers provide special accounts where it is possible to trade in the real market but with fake money. In this way, a real road test is performed, but there is no risk of crashing. The danger is reduced to zero. The only flaw of the demos is that, inevitably, lacking the danger, they fail to return the dimension of stress, sometimes of fear, that characterizes "real" trading and with which each user must learn, sooner or later, to deal with.