Forex is often mistaken for business. It can indeed serve as a way of income (most of the time passive income), but unless you have a brokerage company or you are an investor, chances are, you are a trader. This means you decided to get into the trading world and see how good you can get at it (and gain profit).
People who are distrustful of Forex are usually the same ones who didn’t think through and just went with the first clickbait they saw online. Not doing proper research and believing you will get money in a day, is highly unlikely. Forex can be profitable, but if you approach it the right way. Here, we are going to explain the basics every Forex enthusiast should know about, so you can become a trader yourself.
What are your chances?
First of all, we have to discuss the elephant in the room; flashy ads saying you will get rich in a week, having people (read: actors) saying how great it was them, screams “SCAM!”. Even if you are at your worst place financially and it affects you mentally, please do yourself a favour and don’t jump into this kind of business. It will only bring more misfortune, and you will get the wrong impression of what Forex is. Bear in mind that people who are scammers are good at what they do, and that means sounding like they know everything about the market to make more money from you. Usually, after one (maybe two) conversation, you will never hear from them again. So, how do you search for a certified and trusted company?
Searching for certified brokers
This is not as hard as you might think. Since Forex is a trading market that operates digitally (meaning online, without any institution involved), you will get your knowledge on the internet as well. This means if you are a beginner, looking for a company that has a certificate that makes them trustworthy, meaning you can be sure they know what they are doing, have capable and experienced brokers, and aren’t a scam. You can start by setting your priorities and what you want to achieve by trading (aka what you need the money for), and then continue with selecting a trustable forex broker.
How do you know your broker is the right one?
Once you checked everything online, including reviews and other profiles your broker might have, it is good to see if you guys click together in a business sense. This means that you feel you can trust him (and you have researched enough that you know you can). Being honest about your money and your expenses can be challenging, so finding it easy to communicate with your broker should be another plus for further collaboration. Your broker should be someone who will push you, but not too aggressively to learn more about the market. He will help you out and be there for you, but his end-goal will be that you become a successful trader. This can be achieved by your drive and time you put into learning and not being afraid to ask. A certified company should have support available 24/7 since the Forex market also operates virtually non-stop.
What you need to know yourself
Pay attention to how you tend to spend your money in general, and what type of spender you are. See if you have a money management system, if not try figuring that out and then building it further once you open your trading account. Be sure you don’t have any debt before you start trading. This is a precautionary measure, so you don’t fall into the trap of trading impulsively, and with too much, you can afford. This goes even if you have enough money. It would be best if you started small and experimented on the market, so you can catch patterns and see how it goes from there. You will surely benefit from it in the haul if you are serious about it.