How to learn forex
I’ve been learning the market for over a decade and I can tell you it is much better than ever - if you want to succeed in the industry, start with one of these simple strategies. It might not take as long as others but you will have to put some time out before it becomes second nature. For myself, I started by reading books like “The Little Book Of Common Sense Investing”, which was recommended by my mentor, Dave Gershon. He wrote quite extensively on this topic and he also mentioned that they should start at least $100. By first trading low and looking for more trades, then it’s all about patience with strategy and finding what works best for you. This way you know exactly what your priorities are and will be able to keep them the same! Some trade ideas from The Little Book and also some from different articles I read in Medium.
When it comes to buying gold and other precious metals you need to be very patient and keep track of your account balance and any change in value. If the value goes up, increase your position and make sure the rest of your holdings are equal to the new position and close it completely. You don’t want to look around for a good opportunity to buy gold, because you can never become greedy while owning and trading this precious metal. Also, watch what you do when considering buying or selling anything in order to minimize cash outflow and risk. In hindsight, there isn’t really an excuse for anyone not to be patient and understanding.
Another important thing to remember is that when things are moving in circles, one day down, one day up, or just one of two directions, it might not mean much. Remember in the stock markets if one day goes wrong, you can quickly jump on a rebound and go back to the original direction. However, you can’t do that with gold. A downturn can last months and eventually you get to the point where you realize you can’t recover the same amount of money which was lost. When the next big uptrend starts coming, you might miss those opportunities so don’t give up. There are three important principles that you need to remember. Don’t ignore any signs of trouble. What happens with each downtrend? Is it going up? Or is it coming down? Pay attention to these indicators and try to follow them to avoid getting caught off-guard. Keep in mind the biggest bull market of all times came during 2008 and 2009. They were followed by several smaller ones.
It is always better to invest in small companies that are a part of a bigger company. These companies usually don’t require such huge capital investments like technology or real estate, so the returns don’t matter that much and the risk in doing this isn’t much bigger. Most importantly, if you find someone who has done it previously, ask them to help you along. Be flexible; many times things happen unexpectedly and things change rapidly and you need to adapt quickly in case something unexpected changes. At the end of every recession, people look to the top companies and buy into their growth plan. When you understand it and can clearly see where you can stand if things go downhill, it’s almost easy to spot.
Another great way to protect against short term fluctuations is with leverage, but before I reveal that, here’s how else I’ve used the word leverage and it works for me. Leverage is the ability to convert one asset to another without actually having to pay a specific sum each time. One example would be to borrow money from my friend’s family at 10 percent interest for his business. After that I could lend him 5,000 dollars at a 12 percent interest rate to buy the home I had left unpaid for months and let the debt mature. Then after 3 years, we could sell the business for 50% less. My friend and I made a few thousand bucks. We are now earning enough to live comfortably. That was a very short-term investment and it didn’t even take a lot for us to get back to our previous financial stability in 4 years’ time. So I’ve learned the importance of using leverage and I have to say that it has helped prevent most of the losses I’ve suffered in life.
Another thing that you need to know is that you can’t use leveraged loans as collateral if you can’t keep the payments in line. If you’re worried about not making a loan payment, get a free credit report and review the debt history. Even though you aren’t legally allowed to give people money without giving any reason, sometimes you have no other choice. People need things and they need it. The little things you tell them they don’t deserve can hurt you a lot. Now that’s leverage but it doesn’t replace proper credit checks. And I want to emphasize again, credit checking is still necessary, especially on high-risk transactions like trading. Once you know exactly where you stand, you won’t be tempted to spend money just to play the system.
You might think it is easy to do but it takes hours of research and the knowledge of how to interpret charts and graphs to identify trends and patterns. Since I haven’t been lucky enough to live through the crash of 2007–08, I don’t actually know what happened for those years of economic turmoil. Maybe I should have gone through the market again and checked again when the crisis hit. But I’m glad I did it and at least I’ve learnt a bit of how to cope with future events. I’ve been through ups and downs but I guess it means something that I shouldn’t fear or worry about the future. Just take it as a lesson that anything worth trying and losing is worth having. All I’ve lost in life are the things I thought were useless. I’ll never forget seeing an advertisement on TV saying “Buy 1 Million Gold Bars Today” and seeing everything that I could want to have. Every day that I woke up I turned on the radio to listen to the news. This wasn’t even my life anymore; it was mine. I never wanted to hear myself say those words as soon as possible.
I’ve learned the hard way that everyone thinks they are special and unique. While being unique may sound nice in theory (and yes, you’re special), it can lead to being misunderstood. Asking someone if she/he likes a particular type of coffee, for instance, is so unusual that when you say it to them, you might get a response that just sounds like a weird question. Someone has spent hours researching the coffee and your answer turns out to be irrelevant and rude. In fact, just asking for the name of the coffee brand or a picture of the drink you like can get you labeled a snob. Your question becomes unnecessary. In order to survive this society I wouldn’t try to be a snob, since it is extremely rare, but just being normal makes life easier. Why have an expensive coffee when you can get your coffee in a cup or even get a mug that you can sit in? Yes, people are different and it is difficult to relate to everybody else’s differences, but you can do that with small tweaks and the small talk will be great! No one understands me and that is why I prefer to just talk to people. Besides, you don’t want to lose any friends by showing up at parties if you feel like a jerk.
So that’s all I hope to say and hopefully I helped somebody who wanted to learn forex. Please keep in mind that there is no single correct approach and each investor will come to you on its own. Try to put yourself in their shoes and take all the advice and tools that help you through every step of the process. Finally, remember this is only a starting point and what you have to take from there will depend on how well you handle the journey and how strong you are mentally in following through the path.