5 Goals Beginner Traders Should Have!

Goals Beginner Traders Should Have!

1. Knowledge is Power

Beginner traders, please take the knowledge you acquire seriously. It isn’t for the fun of it, and it may have cost you something; whether that be money or your time, it will cost you.

The saying “Knowledge is power” is entirely accurate, considering what knowledge can do for you and the places that knowledge can take you. In this article, the knowledge I talk about is knowledge on the Forex markets. 

Before thinking it doesn’t yield any results, a beginner trader needs to learn a strategy and stick with it for six months. You must understand that there are all kinds of scenarios in the markets that play out, and if we are saying that this is a game of probabilities, you are bound to lose, and you are bound to win.

As a beginner Forex trader, I advise that you stick to one mentor, one strategy, and one timeframe for six months but during the six months it is crucial to backtest the strategy as frequently as possible so that you can get through the most amount of data in the shortest period.

This is essential for beginner traders because it helps build confidence in a system and the process, no matter how bad the trading day, week, month, or quarter maybe. When you know you are strictly on this path, it is probably time you consider doing the next thing.

2. Save up Capital

Most traders start with as little as $10, but if you have not acquired the knowledge and practiced, 9 out of 10, times you will lose the money.

Globally the average deposit amount by retail traders ranges from $250 to $500. Now, this is a good amount; however, it may not be the easiest to grow to a point where you’re able to pay bills and live your life the way you want to.

So instead of diving right into the live markets, save up funds so that when you are ready, you can start with an amount that will allow you to make a good return even with possible losses during the month. This amount could range anywhere from $1000 plus!

3. Set aside time

The rich don’t speak about their money as much as they talk about their time. The most valuable commodity to humankind is Time. Without it, you can do nothing, and with it, you can do everything.

Build a schedule around your trading if trading is your primary source of income, but if not, you will need to find a strategy that works best to fit your schedule. The more time you give to the craft, the faster you will learn and the better you may become at trading the financial markets.

With the time you have set aside, always journal what you would have learned. And journal your thoughts. The thoughts may help you create an edge in and over the market that you can use to make money.

4. Start Small

Don’t be afraid to start small even though you’ve been through all the practice and you’ve figured out your edge in the market. Starting small is an advantage for you! When you start small, it teaches you discipline and risk management 101!

Never risk more than you’re willing to afford!!! You grow the account steadily and learn consistency through the process.

When you start small and learn quickly, the blows you encounter are less painful than if you were to experience these losses on a bigger scale.

5. Be Realistic About Profits

To your benefit, you are realistic about what you can make from the capital you have put into your account. The amount you start with will indicate how much you can REALISTICALLY make!

These may not be your ideal goals, but I can tell you that if you were to focus on these and not the money you can make, you would get to make money at a faster rate.

Happy trading, fellow traders!

Beginner traders FAQ

It is essential that you pick one strategy and focus on mastering the strategy and back-testing the accuracy of the strategy through previous data. 

It is always advised to start small to increase your ability to risk and manage your money, as well as to hone in on your skillset. However, if you are looking to pay your bills it is recommended that you start with $1000 plus. 

There is no set amount of time required to learn how to trade the Forex markets. It is all dependent on the individual and how quickly they can grasp a strategy and all the other fundamental aspects of trading such as; risk management, money management and managing their own emotions. 

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Emmanuel Maphosa

Emmanuel Maphosa

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