Forex is a complex and complicated game to play, two parts skill to three parts luck. It is as easy to lose money as it is to gain it, so it takes a certain amount of talent, time, skill, and expertise to trade the foreign exchange to your advantage.
This doesn’t mean that it’s impossible to get ahead of the game, however. With the right strategy, even the most novice or inexperienced investor can turn a profit, so here are three top tips to help you do just that…
Tip One: Choose a Suitable Broker
At the heart of any successful forex strategy is a suitable broker. There are thousands of firms to choose from, but finding the right one can be something of a minefield. Experienced brokers with a history of success, like ETX-Capital, are your best bet, but the most important thing is to choose a firm capable of offering the level of support and expertise that you need. For novice and inexperienced investors, this largely rules out execution-only services, with advisory and discretionary brokers usually proving much more suitable.
Tip Two: Perform Weekend Analysis
A good broker is a great way to get ahead of the game, but unless you choose a discretionary service, their support will only take you so far. You’ll need to contribute your own time and effort to turning a profit, and this requires you to do your homework. Like any academic pursuit, forex’s brightest stars are usually those that devote the most time and effort to their enterprises, so it’s important that you’re willing to put in the hours. The weekends offer an ideal time for doing this; with the markets closed, you can spend a while spotting and analysing any emerging patterns, meaning that you’re ready and raring to go when the markets reopen on a Monday.
Tip Three: Learn from Your Mistakes
Our third and final piece of advice is this: learn from your mistakes. You can become your own greatest teacher, provided that you capitalise on your misfortune when things don’t go according to plan. The best way to refine your strategy is by constantly analysing your moves, so that you can identify where you’re going right and where you’re going wrong. If you can begin to spot some patterns, then you’ll soon find that you’re doing a lot more of the former and less of the latter.
Follow these three top tips today and watch your monthly turnover soar.