Thursday, December 27, 2012

Forex Trading Tips: 5 Crucial Facts You Must Never Forget

By Jane Marinie

The road to mastering forex starts with the first step. Do not hesitate because you have the chance to start today. These 5 facts about forex trading can help guide you in your forex journey.

1. Forex is very much unregulated. It is a jungle out there. A new trader can get lost with the abundance of information and well-intended advice. The best way to beat the confusion is to find an experienced mentor to guide you in your journey. Further, even though forex trading is regulated by recognized financial institutions around the world, there are still a lot of loopholes and grey areas that can affect the customers.

2. Most forex brokers have hidden fees. A totally honest forex broker does not exists. Their main purpose is to make profit, whether it is from charging for deposits, or charging for withdrawals, or charging from each transactions made through the spreads, forex brokers will find a way to squeeze some money from any activities made while using their services.

3. Finding a good forex mentor is hard. Looking for a good forex mentor to coach you is like searching for a needle in a haystack. It is time consuming and you need to search through all the false leads before landing on the perfect mentor. The skills gained from forex are earned through closed doors. No fan fare, no hype and gimmick. True mastery is gained in front of the computer with deep thinking involved. But once you do find a great mentor, it won't be as you expected it to be. It may be in form of an e-book or a simple advice from an obscure blog or a discussion in a forum.

4. The forex community is a large, diverse group with many different sub-groups and camps. Forums and online discussion boards are ways you can find out about groups within the forex community. There are numerous discussions taking place and the debate can get really heated. The best advice is to join a forex group, preferably those who share the same values with you. This is important so that you don't feel alone and isolated in your journey to profit in forex.

5. Forex is now very affordable. Forex has become cheaper because of the Internet because it has allowed more people to trade. A blog by Instaforex in Malaysia mentioned that to open a trading account nowadays, you only need $10. That's how cheap it has become.

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1 comment:

  1. Forex trading is quite risky. Trading with insufficient market knowledge should not trade here. To be on the safer side experts can be consulted for forex tips, option trading tips while trading in different markets.