Welcome to The Forex Warrior podcast! On today’s episode, Dr. Jason discusses 7 Tips for Forex Trading Success + My Favorite Pair to Trade!
Number One – Forex is a Zero-Sum Game
If you are new to Forex trading, it’s important to understand that it’s a zero-sum game. What that means is if you’re making money, someone else is losing money like a bank or a hedge fund. Vice-versa, when someone buys the Euro vs the USD, the price will move up until there is more volume selling it for the price to move down.
If you’re taking a big gamble where you are excited to see double or triple your account tomorrow…you’re in the Forex market to lose. – Dr. Jason Gospodarek
Trading in the Forex markets is a lot different psychologically and fundamentally than trading the stock market, futures or cryptocurrencies. It’s trading one currency against the other, it’s trading pairs and if you’re not familiar with that, Dr. Jason recommends doing a bit more research before you get started.
Number Two – Leverage Kills
Whether it’s greed, it’s fear or whatever it might be, leveraging your account up 100:1, 200:1, 500:1 or even 5000:1 is a sure recipe for disaster. A lot of brokers offer high leverages, 500:1, for example, is average outside of the US and some of these brokerages are ok. But you have to be able to take full advantage of what these brokers have to offer to be successful.
Don’t go too big for your account. Trading successfully repetitively should be a boring and tedious repetitive process. – Dr. Jason Gospodarek
For instance, if you are able to trade one full standard lot of the dollar Yen on a $200 account. You can select to trade a lot less. You can select a .001 lot, a .01 lot, a micro or a mini. You don’t have to use the full leverage all of the time. Dr. Jason does not recommend testing this out unless you have a tiny account or you are in a demo and you can learn a little more about how leverage works.
To hear the rest of what Dr. Jason has to say about 7 Tips for Forex Trading Success + My Favorite Pair to Trade, download and listen to the entire episode!
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