What I Wish I Knew A Year Ago About Forex

Looking to learn about forex? You've come to the right post!
Photo by CC user PIX1861 on Pixabay

While many of us hear stories about the successful foray into forex trading by hundreds of traders, we also hear dozens of stories about how many have failed. The Pareto Principle of 80 20 applies almost everywhere and forex trading is also no exceptions. For every 100 persons entering into forex trading, only 20 succeed to some extent. Within the 20 only 20% or 4 actually make it big and are able to earn huge income and create residual wealth. It therefore would be interesting to find out the various reasons as to why so many fail while only a few succeed. While many may talk about fortune and good luck, the truth lies elsewhere.

Forex trading is always in a flux and what is relevant today may not be of much use six months or one year down the line. Hence here are a few important points which one ought to have known at least one year ago. These facts perhaps might have prevented them from making it big and reaching the potential which forex and commodity trading has to offer.

Did You Know Your Goals And Objectives

One of the main reasons for failing badly in forex is because one year down memory lane you might have got into it without clearly defining your objectives and goals. Unless this is put in place it is likely that you will be stuck and moving around in circles. Goals and objectives push you to action and plan your trading not only for today but for the next few months.

Did You Choose The Right Broker

There is no denying the fact that brokers have a big role to play and therefore as a trader you must spend some time choosing the right brokers. If you have been into forex trading and do not have significant successes to show, the problem could be because you may have chosen the wrong broker. The problem is that the market is dotted with fake and unreliable brokers and getting into their clutches could create more problems to you than solutions. Brokers with technological tools and platforms are a good choice and you might have made this mistake when starting your forex business one year before. However, it is a mistake which can be corrected and you should procrastinate any further.

Changes From Fixed Rate To Flexible Rates

From a fixed rate regimen to a more flexible system is something which not many traders may be aware of. These flexible systems allow countries to come out with their own exchange rates or follow the rates being practiced by other countries if the same is in line with their specific objective and goals. Hence, being stuck in a time warp is something which could make you become outdated and obsolete.

Government Controls Might Have Further Eased

While the process of liberalization and globalization might have started quite a few decades ago, there are many changes which might have happened over the past few years including perhaps the last year. This is something you might have missed out on. Hence, you must have a clear understanding that forex rules even in some so-called conventional countries have been relaxed. If you had been aware of this a year back you would have made some smart money but it is worth getting started even today being aware of the changes on the ground.

Real Time Transmission Of Information

There is no doubt that over the past one year or so the transmission of vital information pertaining to forex trading has improved dramatically. Hence if you had been taking decision on obsolete and outdated information systems and methods you could have been on the losing side. It is therefore important to be in touch with reputed service providers like CMC Markets who perhaps could help you with the most up to date information which could be helpful in making the right decision.

Apart from the above there have been new changes to practice and theory of finance over the past few years and not many people would be aware of it. Hence it would be pertinent to be aware of the changes at least going forward so that you are able to take advantage of these positive changes and benefit from the same. All in all, when it comes to learning about forex, there’s always something new to learn … so never stop.