Are you planning to continue to invest in the Forex market in the new year? That’s great because the forecast for the Forex market in 2020 looks very promising.
Forex trading has become by now one of the most popular ways to earn good money with very little effort involved. It is an activity that gives traders flexibility, the excitement of the trade game, and, most importantly, the opportunity to earn a lot of money.
If you have been trading in 2019, you probably already know by now that the Forex market isn’t as intimidating as it may seem. It takes good trading strategies, a reliable broker, and knowing a few things about the market, and a little bit of luck to earn huge returns from trading Forex. Yet, like it or not, your trading success is highly influenced by your trading skills. Knowing when to enter and more importantly, when to leave a trade, making fast and well-informed trading decisions, and managing your trades wisely are all important aspects that you must know in order to win a trade.
Will trading forex will remain popular?
If you were unsure of whether you should continue to trade in the new year as well or not, you should know that there is no need to hesitate. The Forex market has reached enormous sizes and it is currently the largest market globally. And, it isn’t expected to lose its popularity any time soon.
Today, the trading volume for each day is 53 times higher than the New York stock market. So, you can imagine how enormous this market is, too enormous to break any time soon.
Trade with popular currencies
We get it, trading with the most popular currencies on the market can seem really intimidating because that is where all the big players are. However, if you are planning to start earning more money, you should join the big game too.
Which currencies should you go for? well, currently, more than 85% of the transactions on the Forex market happen with only 7 currency pairs including currencies like the US dollar, Euro, the Japanese Yen, the Swiss Franc, and the Canadian dollar.
Also, the US dollar is the most traded currency on the market and it is included in 90% of the trades that happen globally.
Why is trading popular currencies so important? Because these currencies have the highest values meaning that you will have bigger chances of earning more money. Plus, you will also learn how to trade alongside the bigger players of the Forex market.
Learn the psychology of trading
You would think that trading only takes knowing how to handle money and how to create strategies that will help you win a trade. Well, not exactly! It also takes having the right mindset when trading and even when you lose a trade.
But what exactly does the trading psychology mean? It means that you need to have discipline when trading from avoiding trading when you are under stress, especially financial stress, to knowing when to stop investing.
One important rule of being a disciplined and responsible trader is to not trade more than you can lose. This will help you avoid the risk of being under financial stress that can make you take bad investment decisions. Also, when you are in a bad mood, you should also put your trades on hold because there is a strong connection between stress and anxiety and poor financial decisions.
Next, you must learn how to lose. Like any other type of investment, trading Forex also involves risks which means that there is always a possibility that you will be losing money instead of winning. Yet, while risk is part of the trading game, the way you react to loses can have a huge influence on your overall trading strategy.
How should you react to loses? First of all, don’t panic because this can make you trade more than you can afford to lose. Secondly, you need to see loses like a good lesson which you can learn from.
Trade with a reliable broker
Unfortunately, like with any other successful market, there will always be some people who will take advantage of the less-informed investors. You know what they say, there are people in this world who wouldn’t mind selling glasses to blind people if that would bring them profit. And, that type of person is exactly the kind of brokers you need to stay away from.
Choosing a reliable broker is like winning half of the trading game already because you know that there is no risk involved of a scam and that you can count on the customer service offered by the broker at all times. Also, the FX broker’s reliability depends on location and regulation because the more regulated a broker is by different commissions and agencies, the more legit it is and the safer your funds are.
So, if you want to improve your trading in the new year, look for a broker who doesn’t only offer you the best tools for trading but also the security your funds deserve.
According to Statista, there are over 328.000 Bitcoin transactions every day. And, make no mistake, all cryptocurrencies are starting to gain more popularity these days.
The cryptocurrency market is still not comparable in size with the Forex market. Yet, since traders can now trade with digital assets as well, the crypto market is experiencing significant growth. “Never put all your eggs in one basket” is a famous saying among traders. Why? Because it means that you should diversify your trades as a strategy to minimize risks. Simply put, trading both cryptocurrencies and traditional currencies reduces the risk of losing all your investments in case a currency’s value drops unexpectedly.
Becoming a big baller in the intimidating world of Forex trading means doing your best to improve your trading skills. From learning the trading psychology to finding the support of a reliable broker and diversifying your trading portfolio, all these can help you become a better trader in 2020.