As a trader, your most valuable asset is your time

Many rookie traders make the mistake of believing they can make money quickly.

While it is true that you can make money quickly, this does not guarantee that you will be profitable in the long run.

A typical situation is that a rookie trader learns a little about forex trading, finds an online technique that promises to generate money rapidly, and then goes right into trading because he believes he has enough experience to make millions of dollars.

Unfortunately, once the “honeymoon” phase has passed and the excitement has subsided, this novice trader discovers that trading isn't as simple as he had imagined.

The system does not appear to be working as it should, and he has no understanding why the market is acting the way it is.

As a forex trader, the most essential item you can invest in is your TIME!

Every trading day is an opportunity to learn something new, and if you don't keep learning, you'll never be a truly good trader.

Consider how long it will take you to learn the fundamentals. Then evaluate how much time it will take you to study charts, news reports, log your trades, and be in the markets as part of your daily routine.

This is not a problem for someone who can devote a “full-time” employment mentality to forex trading.

However, if you're like most people, you probably have a job, schoolwork, tuba lessons, and TikTok dancing sessions, so you won't be able to trade full-time.

This isn't to say you won't be able to trade, but it should help you set some realistic goals when it comes to choosing your trading style.

You won't be able to be a scalper or day trader, but longer-term trades may be more suitable for your schedule.

Every day, you must devote time to market research. Because news moves the market, it's critical to keep track of global economic trends and incorporate them into your daily routine.

Four items to think about when conducting a market analysis:

1. Changes in the Foreign Exchange Market

Take a look at what's “in the news” in the currency world. Take a look at what the analysts are talking about and how the currencies have responded.

2. Publications

Know what news is being released each day and how it affects the markets.

The more important the news report, the more volatility in its currency you can expect. Please take a look at our Economic Calendar.

3. Other Asset Class Market Prices

Commodities (such as oil) and bonds (such as US Treasury yields) can influence currency movement, therefore it's crucial to understand why these items are rising or dropping and keep that in mind when trading currencies.

4. Current Affairs

Check out a variety of news websites to keep up with what's going on across the world.

Major elections, military wars, and political scandals can all have an impact on currency movements and risk sentiment globally.

5. Examine the Diagrams

Finally, you must examine the charts after completing your daily economic study.

Charts will show you crucial support and resistance levels, as well as trends and potential entry points into the market.