How To Start Trading: An Introduction

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Trading is a transaction that is expected to be shorter than three years.  

It isn’t a get-rich-quick scheme. As a novice, when you start trading you need to forget about money-making for the first year or two. Set a goal to break-even, rather. Focus on protecting your capital instead. 

Decide on the level at which you accept that the strategy isn’t working. By understanding your risk tolerance, you stand a better chance of profiting. 

Don’t use profit or loss in an individual trade as your metric for success. 

Decide what a perfect trade looks like before you start trading and have an exit strategy.  

As a newbie, start by trading small and make sure that you’ll survive some losing trades It always to start at this pace because it gives you room to make a few mistakes and to recover from them without making major losses. . 

Benefits of trading: 

Trading foreign exchange is becoming increasingly popular among ordinary individuals. This form of trading offers many opportunities which may be considered better than those offered by other kinds. 

There are low barriers to entry and it’s also open around the clock. You can trade from anywhere at any time – thanks to innovative forms of technology.  

Unlike the stock market, with forex there is always a lot of money to be made, even when your currency is going down 

It’s also easier to focus on and to keep track of changes in the market. For instance, you won’t have to spend countless hours researching a variety of stocks to invest in. 

When you buy or sell money in one currency for another, a trade is made. Fortunately, forex transaction charges are minimal. Because of the very high liquid market, there is a high volume of transactions continually taking place. 

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