Up to 99% of new retail traders fail because they think Fx trading is a guessing game. While it does involve a significant amount of luck in speculating market forces, this type of trading also requires a sound strategy and research.

For most new traders, failure in Fx trading is mainly attributed to a lack of planning. The forex market is an attractive and highly profitable investment only if you know what you are doing. The easiest way to get valuable experience is to evaluate how professionals trade and mimic some best practices.

Here are six unique tips for retail trading to help you get started.

Best Practices

Set Achievable Goals

Before you begin, ensure you set goals that are realistic and can be achieved easily. Fx trading is much like betting. The more you stake, the riskier the bet and the more likely you are to make emotional decisions. Always start small to prevent losing your entire investment portfolio in one trade.

The key to goal setting is to sharpen your focus. It will allow you to establish a working strategy and stick to it. Many new traders fall into the overtrading trap because they bite off more than they can chew.

Don’t try to hit the jackpot on the first try. Most currency fluctuations are very slight, so you will have to stake significant amounts to get any significant profit. Don’t fall into this trap. Take your time. It is better to make several small profits every day than record an enormous loss in one trade.

Be Patient

There is no such thing as a perfect strategy. Every pro trader will tell you that it takes years to develop a tactic that will minimize risk just enough to make a commodity worth investing in. The trick to effective Fx trading is to take your time.

Once you have a strategy, slowly research market dynamics and improve your technique as you go along. The key is not to be discouraged-up to 99% of new traders incur losses in their first quarter.

Losses are a common feature in Fx trading. The key is to ensure you manage your risk enough to ensure they are manageable.

Learn on the Job

The versatility of the forex market makes it high risk. This means that regardless of how much information you have on an asset, there are always unknown factors that influence market value. For this reason, it is critical to maintaining a constant learning curve as you go along.

Research and evaluate new advances in technology, politics, and recent developments. Note that even public opinion can sway trading patterns. Being up to date on market dynamics will give you a competitive market edge.

Keep Record of your Trades

It is also crucial to ensure you keep a record of your trades. You can save them on the cloud or keep a printout of all the positions you think are worth revisiting. Focus on your losses as a way to analyze where you went wrong.

The idea is to improve your strategy by removing previous ill practices and replacing them with better ones.

You can also keep some big wins as motivation and for reference purposes. These wins will give precise feedback on which principles and practices in your strategy work and which ones you should get rid of.

Take Breaks Between Trades

New traders have this nasty habit of sitting on the screen all day staring at trading charts. This habit will only get you emotionally invested.

Emotive trading impedes your ability to make intelligent decisions and is the main reason why new traders lose most of their investment capital.

Always take time between trades to reboot, relax, and reflect. If a position is not going your way, don’t stare at the screen. It doesn’t help.

Self Awareness

Greed, emotions, and impatience are the scourge of forex trading. Even with a full-proof strategy, if you are incapable of handling losses or you’re trading to be an instant millionaire-fx is not for you.

Assess your tolerance for trade losses, analyze your financial goals, and, most importantly, evaluate your reasons for trading. It is easy to lose your portfolio simply because of anger and greed. Devise a way to maintain an emotion-free trading strategy and stick to it.

Bottom Line

Fx trading is an attractive prospect if you have sound judgment. Self-awareness, a solid strategy, and a bit of patience will guarantee profitability in the fx market. Take time to establish and perfect your technique-you will be making profits in no time.