Page 30 - NEW FOREX FULL COURSE

FOREX TRADING COURSE FOR BEGINNERS

You must have a trading plan. This is the most important part of investing in stocks. Without a
trading plan you are merely gambling away your money, not investing. Not only do you need to
know what trading platform you will use to trade stock, but you will need to understand the
techniques you will use. Will you practice fundamental analysis or technical analysis? If you plan
to use technical analysis, what trading strategies will you use? What are your entry points and
exit points? What are your stop loss strategies? There are numerous things to take into
consideration and to plan for in order to obtain the investment knowledge you need to succeed.
It cannot be stressed enough the importance of developing, implementing, and actually following
your trading plan.

Decide your risk tolerance. How much are you willing to lose? You need to start somewhere and
there is always going to be an investment risk, but you must be sure that you do not negatively
affect your financial status. You will lose money, but only start out with as little as you can afford
to lose. You may choose to only start off with as little as you can “mentally” afford to lose. Maybe
you have more to invest, but it is wise to only use what you need to learn until you are
consistently making money investing in the Forex market. Part of your investment knowledge
should include paper trading. Paper trading online allows you to practice real investing without
losing real money. This tool has proved to be extremely helpful with getting new investors up-
and running.

Just be sure that you understand that when you begin to trade with real money, you will
experience emotions and potentially trading anxiety that you didn’t have when online paper
trading. You must also learn about how to handle and control these trading emotions so that you
do not make irrational trades based purely on emotion. You can have the technique down to a

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