Do you scoff when you hear of those people who say they want to get into Forex so they can rake in massive profits overnight without even having to learn the mechanics of the market? You have probably heard this before: “Hey! All I have to do is buy this automatic trading robot thing and then I’ll be rich!” In other words, “Hey, if I just press this big green button, my computer monitor will spew so many dollar bills at me, I’ll have to build a new addition to my house and hire a full time banker to watch my money in my new “bank room.”
That sure would be nice, now wouldn’t it?
Unfortunately, it doesn’t quite work that way. Learning how to profit with Forex is a much more serious process, as Forex is not at all the equivalent of a push button money making machine. So, now that we’ve established you are going to take this trading gig seriously (you are going to, right?), I have to give you three quick tips to live by.
1) The market is open 24/7. This can be problematic for some of you. You might wake up one morning and buy a currency based on its trend or upcoming news right before you go to work. If you end up having to stay late (and, let’s be honest, that happens more than it really should, doesn’t it?), you might miss your big chance to make the most profitable sell.
2) Don’t let Forex interfere with your day job. Yes, this market can be very addicting. However, the moment your boss catches you analyzing charts, or reading news that isn’t related to whatever product you should be researching for your boss, you risk losing you main income source – thus losing your investing nest egg.
3) Don’t trade over your head. I emphasize this with all of my students. If you’re trading with money that you absolutely can’t live without, you’re already getting yourself in trouble. Always trade with expendable funds – don’t get yourself in a bind.