Before you start trading, you must answer five simple questions. Don't Trade if You Don't Answer Them first.
Trading forex or cryptos?
Forex: A commodity exchange-traded on the major stock exchanges for one or more currencies (conventional currencies with similar or different trading costs or values such as gold, crude oil, crude oil futures, or other commodities).
Cryptos: A type of electronic or computer-based electronic money or digital currency, which get used as an alternative to conventional currencies for some transactions, such as buying and selling. How much do you earn from trading?
How much are you able to make?
How much you earn depends on several factors, such as your skills, knowledge, and experience, your portfolio, and the trading market. Trading in Forex is extremely volatile, so we don't recommend trading it without careful and adequate planning and preparation.
Forex is not a safe investment for anyone with little to no experience. Forex traders get advised to learn the basics of currency trading before attempting to trade bitcoin or any other digital asset.
What about Bitcoin or cryptos?
These currencies are created or created using algorithms that are not controlled by any government, but rather by individuals or groups of individuals. These algorithms are different from traditional global financial markets algorithms, and many of them have been around for several years.
The pros and cons of these coins.
In a sense, Bitcoin and other cryptocurrency markets are just an extension of the traditional fiat system. You can't really use Bitcoin as an alternative to your current banking system because it doesn't use the same standard for currency exchange.
Will you instead do Forex and cryptocurrencies trading?
We recommend trading the currency asset that suits your needs. Still, we also have available for us, all over the internet, a full range of investment options for those who are looking to start trading on Forex and cryptocurrencies.
Let me help you decide what to choose for you to start trading Forex or cryptos or both!
- What is your experience in trading?
- Are you familiar with the terminology?
- Do you think trading is betting?
- Are you a nervous person?
- Are you ready to lose all your capital?
These questions might be the yes or no for you to decide, not only on which asset to start trading but also if trading the foreign currencies market is a thing for you.
First, let's go deep into each question. I promise you at the end of these simple answers you will have a decision made.
What is your experience in trading?
Your experience plays a crucial role in how you react to a trend when it is with you or against you. You will find your experience in trading, as well as the knowledge of the other traders, will also play a significant part in your decision. You will need to understand each situation you have when trading to get more and better insight into your market environment.
If you have one-month trading or six months, I can tell you; you are not ready to start trading. I always advise my students to use their first year trading daily on a demo trading account. This way, when they begin to make money from trading monthly, they will understand the basics of trading and will know that sometimes, no matter how good your analysis, you think it was, you fail.
And by this will help you not to become addicted and make you think twice before going to invest all your balance in a single position, just because you thought it would be a success.
Now, remember, a minimum one year of trading experience is needed.
Are you familiar with the terminology?
The terminology used in trading is an art. If you are an experienced trader, you know what I mean. You can talk about doves, bulls, hawks, bears, and not referencing to animals or a zoo at all.
But forex trading terminology is a must to have it clear so you can dive deep into your analysis. So how to explain the terminology and trade in that way?
I will give you all the definitions you need to know. Just download the file here and read it, learn it, and memorize it. You will need it.
Even if you have the experience, are you not curious to see what is in that terminology? It is a 30K+ word document—a charming way to start or refresh your knowledge.
Do you think trading is betting?
If so, you should have some basic knowledge and experience before you bet any money. Though it looks like betting, it is not gambling. For you see betting is a blind thing, there is no way you can trackback analyze and try to make an educated decision before opening a trade. It is much like analyzing the behaviour of an asset-based on experienced trading or learning from your experiences.
So if you think trading forex or crypto trading is betting, you better never trade without enough information and experience.
Are you a nervous person?
Sometimes when trading, a short term position, it might get so good that it gets you excited, and you just want to get out of the market, which decision if inside your trading strategies will be the right decision.
But other many times, you will have open positions against your money, and you are losing it. And you think, "well, I have a strong position to hold on, but I am losing money, what is my point to get out of the market now and open a new position to take my money back." And because you didn't frame your mind into the strategy, you might keep it open and lose money, or you might close it on negative.
You should always aim for a certain amount of pips, once you reach the goal. Get out!
Start a new analysis, new position, and if you got convinced it will be the good one, then go for it. But remember, you might lose anyway. Controlling your nerves is Key on your trading live.
Are you ready to lose all your capital?
Trading Forex of Cryptos is risky. You should never trade with money that you need. When you decide to open a trade on the markets, put some extra cash aside, an amount you feel comfortable with losing.
You will not trade to lose, but the global markets are highly volatile, similar to forex are cryptos. You don't know what might happen and change the trend against you.
Having this clear, You now need to make a decision. It is trading right for you, or it is not?
That is great, continue reading and prepare yourself for a roller coaster ride.
Well, at least now, you can keep learning with a demo account until you feel secured to invest, not before.