Hooray for forex! Of course, if you’ve taken a beating in forex lately you might not be saying hooray. You might be a little lost and feeling like it’s the end of the world for your forex trip. Don’t worry — downswings are part of the process. Any trader that truly tells you that they’ve never lost money in the world of forex really is trying to sell you something — a pack of lies. The nature of the market means that nobody can ever be 100% right. If they were, they’d be making a LOT more money selling the secret to hitting the nail on the head each and every time.
You have to think about your goals in forex. How much do you really have invested in the market? It might be a lot more than you’re willing to lose. Pull out money as you can. If you’re trading on margin, then you need to make sure that you’re not so invested that you can’t get out without serious repercussions. Forex is high finance, serious finance, and finance that isn’t always easy for everyone. It’s okay to back out of a market when you don’t feel like it’s serving your best interests anymore.
If you’ve been papertrading, you might decide that now is definitely the time to look at getting involved. It’s completely up to you to decide to put real money into the game. Just remember that this is a worldwide game with heavy responsibility. You need to make sure that you’re really managing your risks. Thinking about forex on a different level means that you’re studying the financial news markets in a different way. All news can affect the world of forex. Traders do trade based on emotion and sentiment. Fear is a real thing that can affect your portfolio more than you’re willing to admit.
Are you involved in exotic currency pairs? You might want to pull back if you are. Or if you’re okay with the higher level of risk, you can plunge deeper.
The key to spring cleaning and rebalancing your forex life is that you need to seek as much clarity as possible. Have you considered booking time with a forex consultant? If you haven’t, then it might be time to get an expert opinion. All of our forex articles are general advice. We can’t look at your portfolio directly, so we definitely want you to get the specific advice that you deserve.