Well if you have decided to take a plunge in, its best to be suited up as in your best gear and that means to know what the DO’s and DONT’s are:
- You should never count on forex to be your only or main source of income and you need to be very strategic in your investments in FOREX. Most importantly you should not juggle money meant for necessities such as basic living expenses and savings for medical emergencies ever.
- It is not smart to trade on a currency pair if you are not similar with either one of them, as crappy as you may think this advice is when you read it off the internet you will be surprised to see how tempted you are to pull off such a stunt in your eagerness to make money.
- There is a lot of material on and off line available, with quick fixes to FOREX trading. They are mostly promoted by FOREX brokers who are trying to paint the picture that the other side of the pasture is greener. As helpful as those sourcing guides can be, you must remember that no pamphlet or web seminar can give you the full set of skills for you to bury yourself knee deep in FOREX trading.
- If you are doing this on your own, well Kudos to you! But if you’re placing your trades through a FOREX broker it is important that they are licensed by the regulatory body of yourcountry. ForAussie forex the governing body is the Australian Securities and Investment Commission (ASIC). Each country has a regulatory body of its own. In Germany it is the Federal Financial Supervisory Authority (BaFin). In the Philippines it is the Securities and Exchange Commission Philippines and the Bangko Sentral ng Pilipinas (BSP). The number and extent of their involvement is entirely subject to the policies each country has with regard to FOREX.
- To be a FOREX trader first thing you need to invest is time. And a lot of it! And then you also need to have a sound understanding of how the major currencies such as the USD, EURAND JPY behave. In order to put your best put forwardyou need to be alert on the trends that impact international trade and important changes to government policies etc.
- You should never trade FOREX as you would approach gambling. It is not a pass time based on sheer luck or any other superstition you believe in. Trading is a calculation of numbers that are supported by the relevant market conditions by no means should be taken lightly.