The world of FOREX seems very entertaining from outside. It is not bad in reality but often one needs to work harder than most other professions in order to make a fortune. People often make small mistakes which result in big losses and ultimately a disappointment. However, the following checklist should be in your mind before formally starting trading as it might be helpful in making better decisions.
1) Understand your risk appetite. Never risk more than what you are ready for.
2) Learn to control your emotions as one of the biggest reasons behind the failure of beginners is that they get overwhelmed by emotions and end up making rash decisions.
3) Make sure that you have adequate skills related to using major analytical tools and interpreting data gained from these tools, such as charts.
4) Understand various trading strategies and choose one which is closest to your attitude. Try to master it in the long run instead of trying different strategies in the short run.
5) Carefully chose your broker after understanding all terms and conditions and costs involved with trading with each of the shortlisted brokers. Also, ensure that you are happy with the provided trading platform.
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