FOREX as a Business? Is it true?
When the author decides to engage in trading, the question arises “what is my first step to trading? Many suggest an approach to “learning by doing” or “let it flow” which according to the author is a little misleading. If a trader is serious in forex trading, then treat forex as a business. Learn this business by starting from knowing what forex is from various sources. The author really does not advise readers to quit work or leave the business you are working on.
The reader can take this personal decision, of course, after being able to get consistent profits from forex. Or you have felt a match with this forex trading business. If you already consider this a business, it means you have to think and act as a businessman. Suppose you plan to run a business in the culinary field. The question is, will you immediately open a restaurant next week? A businessman, usually going into the market with his business plan.
Forex as a business has several important things, such as preparation, inauguration, routine and development.
Before you start your business in the culinary field, surely you will try to find out about the ins and outs of the business by asking friends or relatives, reading books or websites or attending a training. Then a survey is carried out by trying competitor products and services, asking the guard officer or the customer who is at the competitor’s place with the intention of being able to take a positive value from the competitor. For forex trading, without realizing it is similar to businesses in general including culinary business. Maybe you hear from friends or relatives who have succeeded in this business, and readers want to feel the same. Encouragement from the inside to try and not want to be left behind from others makes the reader remain optimistic to understand more deeply about the forex trading business. (read: What is Forex?)
Smart business people usually do not directly throw themselves in the business field without practicing or trying on a small scale first. You should try trading manually using a demo account. This will usually take several weeks to several months until the reader has a consistent level of success and increased confidence.
After you feel you have enough preparation, you can get ready to run the business in real time and start it right away. Start by deciding on a strategic business location and preparing material needs such as tables, plates, glasses and others. The next step might be to get an official business license and start looking for employees if needed. Likewise with forex trading, after you feel confident with your trading skills by using a demo account, then you are prepared to start a real business in a real account. Prepare the equipment needed to boost your trading such as computers / laptops, internet connections and forex brokers that you can trust.
After the inauguration phase is complete, the routine for the next few months will be very decisive. Just like the culinary business, surely you will make a daily agenda to record daily performance. You also need to prepare the management of raw materials, and prepare records of profits and losses. For forex you have to make a daily agenda about the performance of your trading, so you can monitor the results of your business. The author recommends traders to read fundamental news at least once a week.
After the forex trading business runs smoothly and provides regular income, it can start developing your business. To increase the amount of profits, please try other currency pairs with a similar strategy. Another way is to increase the lot size for example from 0.1 lot to 1 lot, but this requires sufficient mindset and money management readiness. It is highly recommended not to change strategy easily until mastering the strategy in depth. You don’t need to master too many strategies because there is usually no correlation between the number of strategies and the amount of profit. The simpler a strategy is, the better it will usually be.
Conclusion: Forex trading is very similar to other conventional businesses that must be carried out seriously and wholeheartedly. Don’t jump into this business with no seriousness, because it will adversely affect your trading performance. With sufficient preparation and an unyielding spirit, you will succeed in this business. Happy trading