With the rising cost of living causing concern for households across the UK, one in four UK adults is boosting their income with a secondary stream. One of the ways in which people are increasing their monthly revenue is through forex trading.
Forex is fast becoming a favourite form of trading thanks to its relatively low buy-in, its non-stop accessibility, and the ability to profit in a depreciating market.
But, if you’re considering starting a forex business, there’s a few things you should consider.
Understand the basics
Whilst forex trading is highly accessible, it’s not easy to understand if you don’t have a basic grasp of trading. Because of the nuances of trading, and the volatility of the forex market itself, we recommend finding a forex expert and working with them first to truly get to grips with the basics.
Try a demo account
Demo accounts on trading platforms are the perfect place to practise your need found skills. You should spend a number of weeks in a demo account so that when you go live, you fully understand the numbers you’re looking at, what to buy and sell, and most importantly when.
Practise
Forex trading can’t be learnt overnight or on the go. It takes time to extensively understand how to do it well. This is where practising on a demo account becomes invaluable.
A demo account also allows you time to practise various strategies that enable you to create a trading style of your own, without risking your own money.
Use real money
When you’ve practised on your demo account and you’re comfortable with how it all works and you feel confident to go live, it’s time to trade for real. Converting your demo account into a live account is simple, you often just need to deposit a minimum amount specified by your broker.
Part of your trading strategy should include when to cash-out – and at what point to accept a loss.
Learn from mistakes
In trading, mistakes are inevitable – especially early on. When starting a forex business, you need to remember, that just like any business has periods of profit and loss, so too will you.
Unlike traditional business avenues, however, the margin for profit and loss in the forex market is extremely vast – and can occur quickly. Learning from your mistakes will hold you in good stead. And remember that success isn’t just because of skill, and loss isn’t just because of bad luck.
