Let’s begin the year 2021 on the right foot by taking care of our money, especially our savings and potential investments! People have never been more interested in taking care of their money the right way. This involves psychological and physical factors, from your relationship to money, how you spend it and how much you have. It means going through all the mess you create in your headspace by not knowing exactly where you spend all of your money and taking care of that so you can be a little more at ease. Becoming a trader can help you a lot in saving money (investing is saving!), and here’s how you can start the right way.
Recognize Your Patterns
To start a successful trading path, you need to recognize your spending and to save money patterns first. If you don’t have savings, then it’s time to start one. Start small, as you will also start small once you start trading, which is one of the main factors that lead to successful trading. It requires patience, and you will learn one way or another that you have to calculate your steps rather than acting out of impulse. Since we touched upon impulsiveness, it’s important to recognize when you spend out of impulse instead of necessity. Take a month to figure it out, write everything down or pull up your monthly credit card receipt. Are small things your comfort zone when you had a bad day? Do you have time for your hobbies, or you instead go shopping even though you know you can’t afford it (we know shopping is a hobby as well, but if we’re honest it’s an expensive one).? Being honest with yourself will help you reorganize your money and prepare yourself for trading.
Check for scams
Any flashy ad where they promise you the world within days is not realistic, and it will never be. It is a type of ads scammers use to attract clients who don’t know enough about the market, but at that moment they want to believe it is possible to gain surreal amounts of money in a week. It is a fact that Forex is decentralized, but that doesn’t mean there aren’t websites who compile a list of regulated brokerages. You are always only a few clicks away from a website where you can check whether the company you are interested in opening an account with is legit or not.
Trust your broker
First of all, you should check their credibility as well. You can do that by looking at broker reviews, where you will quickly get if they are scammers. If everything goes well and they have a good portfolio, the next things are being transparent with your broker as much as possible. What does that mean? Not lying about how much money you can invest because you feel some “shame”—talking about your goals and what you want to achieve by trading and investing. Asking how everything functions and anything you don’t get along the way. It also means creating your trading strategy.
Build a Strategy that works for you
Becoming a forex trader means having a trading strategy that includes your goals, current income, how much you can invest, and your long-term goals. We mentioned being transparent with your broker because, at the very beginning of your trading journey, they will be able to recognize what type of plan would be most suitable for you until you advance a bit. You do not want to invest more than you have and be at a loss, creating a more frustrating situation and hatred towards the industry. Be smart about it. It is your money and respect that because you earned it by working hard.
As we mentioned, the worst thing you could do is invest everything or even more because “it’s a great time to invest in bitcoin RIGHT NOW”. It is always a good time to invest in something and to have results you have to take baby steps. This way you won’t be overwhelmed, you will see results when you put money (even if it’s a small amount), and you will be able to progress faster because you won’t always be under the stress of lack of money. Remember – have patience and a goal. It will take you far.