Every person who has engaged in any kind of business will always have a few things that they learned during the journey. The experiences provide tough lessons that guide them during their time in the business.
When I got into forex trading, I had little knowledge about the market and even though I had read widely, I did not have much of an experience. After the first few weeks, though, I learned some invaluable lessons that I will gladly share with budding forex traders.
1. Experience is the best teacher
One of the best lessons I acquired during the first few days was that experience is the best teacher. A lot of traders never really appreciate the necessity of a forex demo program and technical indicator analysis (also known as “top indicatoren” in the Netherlands) until they see a real-life scenario panning out during the trade. For me, I was fortunate enough to have known about demo accounts. So when I started the actual trade, I bought a lot of wealth and experience from the demo programs.
2. Forex news is not as reliable
Many new traders assume that forex news could provide a great way of informing themselves on the direction of the market. This could not be further from the truth. Not only did I observe that most times the news had absolutely no impact on the trade, but I also noted that sometimes, it was completely misleading. The news is great for keeping up with the markets but it rarely translates into the daily activities at the forex market.
3. Never procrastinate
This is one of those things that every person talks about when giving general life advice. I quickly learned about the dangers of procrastination the first few days during my trading. Not only does procrastination make you miss some valuable trade opportunities, but it slows down your overall growth in the forex business.
4. The price trends are everything
One of the key things that I would recommend for all budding traders is to take the time to understand price action. When I fully commenced trading, I was only concerned about the patterns that were forming on charts but I was not looking at the price action with the required keenness. It is only after a while that I realized the only way to be profitable was to keenly follow the prices and make decisions based on the trend.
5. Learning about support and resistance is priceless
I will admit that I always knew about support and resistance from my little prior research. But I did not exactly know how it was relevant in forex trading. The technical aspect of this concept, however, became clear after only a few days during the trade. From the concept, I was able to clearly observe the relationship between the trends and reversals in the market.
6. Patience pays
Finally, I learned about the virtue of patience and why it is necessary for forex traders. Forex trading is a tough business that involves utter devotion and patience. There are a lot of traders who give up along the way. The only way to success in the trade, however, is through commitment and patience.