Let’s face it, you know you want to trade currency, but it scares you. It is like the shady shadow of the bogey man that gives every four-year-old a start in the middle of the night. It is probably the most approachable, kindest, and gentlest of all the market trading you can do on your own.
For one, it takes very little money to get started. That means that heck, even if you lost your whole entire $500 investment, well, is it really that big of a deal? Not when you compare it to people who have lost all their retirement savings in the stock market in one day.
It is just currency. Now, do not be fooled into thinking it is as easy as just blindly buying and selling, either. It takes time, patience, knowledge, and the ability to discern what you do not know.
Don’t Be That Guy
Do not be foolish and put all of your money that you need to survive and live on in the markets. Always have a little bit of money that you dedicate to investing. Avoid being overly emotionally attached to owning or holding onto what everyone else could tell you is a bad investment. Always be wise and able to cut loose, even if your long-departed father invested in the yen for you 20 years ago.
Take your time, and do not follow everyone else’s lead just because it sounds good. In particular, if you have no idea what they are talking about, avoid getting head-long into it. In time you might learn that what they were doing was a.) contrarian, b.) risky, c.) against your personal values about how to invest and handle money.
Investing Carries Risk
That all said, currency investing is risky. Sure, country A and its currency is stable today. If you put all your eggs into that basket, and you wake up to find they had a revolt overnight, guess what? Your currency with that country probably becomes worthless. It is a risk, and never lose sight of the risks.
Aways have realistic sights on the markets. Sure, there is a self-professed guru online who claims for $2,500 he can show you too how to make endless money easily and effortlessly through currency trading. If you believe that then you need to stop yourself. If that guru had the magic bullet for always-successful trading, would he be selling books or retired on an island never to be heard from again?
Always be prepared to weather some bad days, rough weeks, and shaky years. It is all a part of the game. But, if you know the basics of investing in currency you stay the course and navigate through it. Be prepared, though, because sometimes you lose. While you make gains they are unlikely to be like that alleged third cousin twice removed who made “millions in the markets”.
Right. Right. Have you ever met that third cousin twice removed? No. Did you hear of him prior to your ventures into day trading? No? There is no magic bullet. He does not have it. The guru online does not have it, and neither do the business news anchors and guests.
The news anchor gets paid for showing up and being on television, not for tending to your monetary gains and losses. The on-air guests make nothing for you either. They have a job at a trading firm and that’s how they make their money.
The point is that everyone is actually in the same boat as you. They may claim to know something you do not, but that is not the case. A big word of caution here. The reason you always want to keep your view of others in check is that they may claim to have insider information.
If it were the “big tip” then why would they tell you? How are they to know if Country A is going to have a revolt tonight and what effect it will have on their currency. Maybe it has the opposite impact and you would have made money instead.
Focus On Yourself
Be aware of the goals and Stark Trading System trading objectives that you have. Keep it fairly down to earth and trade according to it.
Always keep in mind how much or little money you have to invest. Do not overspend. Do not over-bet. And, most of all, enjoy learning the ropes and having fun with it.