If you spend a lot of time online, you know there are many forex trading tips out there. Many people immerse themselves in them, and end up hopelessly lost in confusion. Then, they wind up taking no action at all. Here are three tips to help prevent information overload:
#1) Just start investing
Sure, you have to know a few things before starting. However, trying to learn everything before you begin is financial suicide. The way to learn is by just starting and making mistakes. Sure, some of you investments will lose money. That is why you should start out with a tiny amount, and gradually increase it.
You will never figure everything out. If you try, there will always be one more piece of information you need before you begin. In other words, do not pour over book after book on forex trading strategies. The way to get results is to learn as you go, while at the same time educating yourself.
#2) Apply the 80-20 principles
There is a law that says that 80% of your results will come from 20% of your efforts. This is true in any area of life, and foreign currency is no exception. In other words, after 80% of your profits will come from 20% of you investments. Therefore, you need to evaluate the winners and look for the commonalities in them. That way, you can go out and find more investments like that.
#3) Do not overtrade
There is a common theme among losing investors. They want to stay active, because that is generally what they are used to at their 9-5. Therefore, they make trades every day, even if they cannot find any good investments. They key to being profitable with forex is to only invest when you find currency pairs that meet your criteria. If you do not, there is nothing wrong with sitting on the sidelines for a day or more.
Conclusion-if you want to become profitable, you have to do different things than the majority who are losing money. Implement these three forex trading strategies, and you will start earning shortly.