Considering diving right into the Sea of financial industry known as Foreign exchange or Forex?
Well, before that, " Are you really prepared to face the most volatile market head-on? " Ask yourself that!
To be frank, one of the major factors which we ignore most of the time is "prioritizing our own perspective," and which obviously pays us back in the long run.
Knowing ourselves should be our primary objective and that does not only bind to online forex trading except it also implies in our day-to-day life.
So, before anything, "Knowing yourself" should be your GO-TO. Now, let's move on to today's topic which deals with the term" know yourself and its effects on trading".
KNOWING YOURSELF IS MORE IMPORTANT THAN KNOWING THE MARKET
And, to be honest, while trading is one of the prime aspects that should not be neglected at any cost.
So, if we ask you, "How do you really know yourself?" What will be your initial comeback to this?
And...don't feel pressurized yet.
We don't know about you but as per Aristotle, "Knowing yourself is the beginning of all wisdom". And that's not it! Famous public figures like Carl Jung also quoted that,
“The privilege of a lifetime is to be who you truly are.”
Did you get the significance of understanding yourself?
Despite all of this, you may start to wonder, " How can I really know myself, you're kidding right ?" Let's face it! Anyone will think of this as similar to what you're viewing and which is totally justified.
In order to know yourself well, you can take several steps. Any BRIGHT ideas?
No worries! If you don't come up with anything at this moment, we got you. I mean, that's what we do! Help you in certain ways so that you don't get stuck anywhere in your online forex trading career.
P.S: In case you’re drowning in the Foreign exchange industry while searching for a trading broker to pull you up then AssetsFX might be the IDEAL choice for you!
Bearing that in mind we're gonna breakdown some of the most EFFECTIVE steps that will help you master yourself as well as sharpen your trading senses.
So that being said, let's dive right in,
But before bragging all about the psychological facts and myths used in trading, how about highlighting some of the basic steps which can lead you to know yourself BETTER.
Why is that?
Because trading is mostly a profession. So, before knowing the things about your profession, you should rather know yourself completely and in that way, you'll find self-confidence along with a better overview of yourself. In order to attain that, you can follow the ABSOLUTE steps stated below:
TAKE SOME TIME AND "BE QUIET"
We really can't deny the fact that while we stay quiet and think something through, it becomes quite easier. And that's not even a CAP! As it's often considered a universal truth.
So, what you've to do is, give yourself some time and ask yourself stuff before actually doing them though it might get uncomfortable sometimes because you're probably alone at that time but trust us, it works like MIRACLE!
And you'll find that against all the odds you're being true to yourself and that counts BIG TIME. And exactly at that moment, you'll be able to discover the true self of yours which is hiding DEEP inside you.
FOCUS ON WHO YOU ARE RATHER THAN WHO YOU WANT TO BE
Let's face it!
Ask anyone out there, "what do you want to be?" And guess what?
98% of the people will give you a fancy answer and when you're done, ask them, "who you truly are?" it will be an odd silence, nothing more, nothing less. Believe it or not, that's the BITTER truth.
Because nowadays, no one really focuses on who they are. Instead, they want to become someone else, and that's the root of self-confidence issues.
Remember that, in this ever-evolving cruel world, no one is really perfect as everyone lacks certain things, but that doesn't mean that you won't discover yourself fully. Instead of becoming someone else, find more about yourself, evaluate the chances and take proper actions.
As per, our friendly neighborhood Spiderman (Peter Parker),
Everything starts from a leap of faith!
So, it's high time, take the leap now cause it's now or never!
DISCOVER YOUR COMFORT ZONE AND DISCOMFORT ZONE
Finding out certain things, such as what you're good at as well as not good at is one of the most crucial initiatives which performs a HUGE impact on your way to knowing yourself BETTER.
Though it'll probably take quite a long time or sometimes more than expected for you to find out in which things you're good at or passionate about and in which things you're not.
As an example, while performing this process you'll discover certain things which will give you comfort along with confidence and make you think," Yes, I can do this". And at that point, you'll know that the procedure which you were undergoing was successful.
But wait, there's more!
While exploring yourself, you'll also come across several things which will at first trouble or bore you but after doing a few attempts, you'll become fond of them eventually and online forex trading is one of them.
That's why Yvan Byeajee stated that:
“Focus, patience, wise discernment, non-attachment —the skills you acquire in meditation and the skills you need to thrive in trading are one and the same.”
So, these are the steps that can help you to know yourself even better than ever but while trading the approach usually varies from the ones stated above.
Let’s dive right into them, shall we?
FIGHT THE FEAR
As per many trading associate publications and surveys, almost 95% of the traders face a common feeling, which is obviously the fear of losing money. So, how's it connected to knowing yourself?
Well, while trading, knowing yourself is more crucial as well as significant than knowing the market.
While trading asks yourself first if you can really pull this one up or what'll be your approach if you lose money, i.e.
Finally, if you find your inner confidence that you can accomplish this trade for better, then open that trade not before.
Trading psychology holds quite a significance in order to trade better. That's why it might be wise to interact with experienced market traders to know about their ADRENALINE.
If you can find that out, it'll be a lot easier for you to fight the fear of losing your capital unless you won't be able to trade comfortably.
If you still face hesitation, check out several Forex forums to get a better disclosure. Besides, BabyPips might be the ULTIMATE destination for this approach as they have a dedicated category for trading psychology only.
See that? Tell us it’s not fascinating!
DON'T CHASE THE RABBIT INSTEAD START THINKING
Chasing the rabbit is one of the terms which has the ability to express a significant meaning, and in this context, it means don't chase after money, instead evolve your trading method. As a reason, Alexander Elder stated that,
The goal of a successful trader is to make the best trades. Money is secondary!
Did you get the point?
It's okay to think about winning the trades, but at the same time, you should always be prepared for the worst-case scenario.
The online marketplace is more volatile than ever, which means there's a pretty good chance that you might lose all your money. Therefore, a proper mindset is needed in order to trade in the online trading market.
As per David Sikhosana,
“Losses are necessary, as long as they are associated with a technique to help you learn from them.”
It's no doubt that the market will test your emotion in every way possible but the real question is, "Do you have what it takes to get back up against all the odds?".
If yes, then welcome to the online trading sphere. You'll be able to survive here in the long run despite all the difficulties you’ll face.
RID FROM ALL THE DISBELIEFS
There are often certain traders who possess various disbeliefs both in their personal and professional lives. And as far as we know, online trading is mainly part of one's professional life.
Now, let's move onto the main point, while trading you should always try to get rid of all the negative beliefs which you have as it can often conflict into much more of an issue and can turn against you.
Besides, these conflict beliefs usually inherit from families, and that too most of the time. But on some occasions, society also produces certain impacts which later on leads to several disbeliefs.
And trust us, if you're a victim of conflicting beliefs then you should work on that ASAP unless you won't be able to go through the HEAT of the online trading sphere.
You're getting it, right?
AT A GLANCE:
As we've come to an end to today's discussion, let's summarize the key takeaways once more. They simply go like this:
Take some time and "BE QUIET": It's always a wise decision to give everything a PAUSE and think the stuff through. So, do that!
Focus On Who You Are Rather Than Who You Want To Be: Always give top priority to becoming yourself first instead of becoming someone else. It'll pay off!
Discover Your Comfort Zone And Discomfort Zone: Point out the things which you're passionate about along with the things you don't like. You'll get a BRIGHT idea about yourself!
Fight The Fear: Having any sort of fear or phobias won't let you fly freely in this financial sphere. Try to get rid of them!
Don't Chase The Rabbit Instead Start Thinking: History has deliberately proven that chasing after money is not the solution. There are other possibilities, explore them!
Rid From All The Disbeliefs: In this modern and evolved civilization, there is no place for disbelief. The faster you get rid of them, you'll succeed!
Lastly, let’s hope that you’ll find these contexts helpful along with applying them in your day-to-day life (on and off trading). That being said, we're putting it to a conclusion.
To compensate for an agreeable financial future, contributing is fundamental for many people. As the Covid pandemic illustrated, a steady economy can be immediately turned, leaving the individuals who weren't ready for difficult stretches scrambling for money.
Be that as it may, with securities and CDs yielding so low, a few resources at galactic valuations and the economy battling with flooding expansion, what are the best ventures for financial backers to make this year? One thought is to blend more secure experiences and more hazardous, better yield ones.
Investing can supply you with some other supply of income, fund your retirement or even get you out of an economic jam. Above all, investing grows your wealth — assisting you to meet your monetary dreams and developing your buying electricity over time.
Or perhaps you have bought your domestic or come into some money these days. It's a clever selection to let that cash work for you.
While investing can construct wealth, you'll additionally desire to stabilise possible features with the threat involved.
And you'll like to be in an economic function to do so, which means you'll want manageable debt levels, have enough emergency funds, and be able to trip out the ups and downs of the market besides wanting to get entry to your money.
There are many approaches to making investments — from very secure alternatives such as CDs and cash market debts to medium-risk selections such as company bonds and even higher-risk choices such as inventory index funds.
That's fantastic information because it's potential you can discover investments that provide a range of returns and healthy your chance profile. It also allows you to mix assets to create a well-rounded and diverse — that is, safer — portfolio.
1. High-Yield Financial Savings Accounts
A high-yield online financial savings account will pay you pastime on your money balance. And simply like a financial savings account incomes pennies at your brick-and-mortar bank, high-yield online financial savings bills are available motors for your cash.
You can earn tons more outstanding pastime fees at online banks with fewer overhead costs. Plus, you can generally get admission to the money by rapidly transferring it to your predominant financial institution or possibly even with the aid of an ATM.
A financial savings account is a top automobile for those who want to get the right to enter money quickly.
Best Funding For
A high-yield financial savings account works properly for risk-averse investors, particularly for those who want cash in a quick-time period and in favour to keep away from the hazard that they won't get their cashback.
The banks that provide these debts are FDIC-insured, so you don't have to fear dropping your deposit. While high-yield financial savings bills are viewed as secure investments, like CDs, you run the chance of dropping buying electricity over time due to inflation if charges are too low.
Where To Open A Financial Savings Account
You can browse Bankrate's listing of outstanding high-yield financial savings bills for a pinnacle rate. Otherwise, banks and credit score unions provide a financial savings account, although you might not now get the first-class rate.
P.S: Time To Trade With A Lightning Fast Platform - AssetsFX
2. Short-Term Certificates Of Deposit
Certificates of deposit, or CDs, are issued with the aid of banks and commonly provide a more excellent activity price than financial savings accounts.
And non-permanent CDs may also be higher picks when you anticipate costs to rise, permitting you to re-invest at more significant, more outstanding charges when the CD matures.
These federally insured time deposits have unique maturity dates that vary from numerous weeks to countless years. Because these are "time deposits," you can't withdraw the cash for a specific time except penalty.
The economic organization can pay for your activity regularly with a CD. Once it matures, you get your genuine primary returned plus any gathered interest. It will pay to keep round on-line for the fantastic rates.
Because of their protection and excellent payouts, CDs can be a genuine desire for retirees who don't want instantaneous profits and are in a position to lock up their cash for a little bit.
Best Funding For
A CD works properly for risk-averse investors, particularly those who want cash at a precise time and can tie up their money in alternate for a bit extra yield than they'd discover on a financial savings account.
CDs are viewed as secure investments. But they do raise reinvestment hazard — the danger that when activity charges fall, buyers will earn much less when they reinvest fundamental and pastimes in new CDs with decreased rates, as we noticed in 2020 and 2021.
The contrary threat is that costs will upward thrust, and traders won't be able to take benefit because they've already locked their cash into a CD.
And with charges predicted to upward push in 2022, it may also make feel to stick to non-permanent CDs so that you can reinvest at higher costs soon.
It's essential to notice that inflation and taxes ought to erode the buying strength of your investment considerably.
Where To Purchase A CD
Bankrate's listing of notable CD quotes will assist you in locating the acceptable fee throughout the nation as a substitute for counting numbers on what's handy solely in your neighbourhood area.
Alternatively, banks and credit score unions commonly provide CDs, although you're no longer in all likelihood to discover the first-class fee locally.
3. Short-Term Authorities Bond Funds
Government bond cash is mutual dollars or ETFs that make investments in debt securities issued with the aid of the U.S. authorities and its agencies.
Like non-permanent CDs, temporary authorities bond dollars don't expose you to many dangers if pastime charges rise, as they're anticipated to do in 2022.
The dollars make investments in U.S. authority's debt and mortgage-backed securities issued with the aid of government-sponsored agencies like Fannie Mae and Freddie Mac. These authority's bond dollars are well-suited for low-risk investors.
These dollars can also be an excellent desire to establish buyers and search for money flow.
Best Funding For
Government bond money can also work correctly for risk-averse investors, even though some kinds of cash (like long-term bond funds) can fluctuate extra than non-permanent dollars due to modifications in the hobby rate.
Funds that invest in authorities' debt gadgets are among the most secure assets because the bonds are backed by the U.S. government's complete trust and credit score.
If activity fees rise, the expenditures of current bonds drop; and if activity prices decline, the costs of existing bonds rise. However, the hobby charge threat is greater full-size for long-term bonds than non-permanent bonds.
Short-term bond dollars will have minimal influence from increasing rates, and the cash will progressively enlarge their pastime charge as prevailing charges rise.
However, if inflation stays high, the activity price might also now not hold up, and you'll lose buying power.
Where To Get It?
You can purchase bond cash at many online brokers, which enable you to change ETFs or mutual funds. Most brokers that provide ETFs permit you to buy and promote them at no commission.
Mutual money can also require you to pay a fee or make a minimal purchase, although now not always.
4. Series I Bonds
The U.S. Treasury troubles financial savings bonds for character investors, and a fascinating choice for 2022 is the Series I bond. This bond helps construct safety in opposition to inflation.
It can pay a base pastime charge and then provide a factor based on inflation. The result: If inflation rises, so does the payout. But the reverse is true: If inflation falls, so will the hobby rate.
The inflation adjustment resets every six months. Series I bonds earn pastimes for 30 years if they are now not redeemed for cash.
Best Funding For
Like other government-issued debt, Series I bonds are desirable for risk-averse buyers who do now not choose to run any threat of default. These bonds are additionally a top alternative for traders who favour defending their funding in opposition to inflation.
However, traders are confined to shopping for $10,000 in any calendar year, although you can follow up to an extra $5,000 in your annual tax refund to buy Series I bonds.
The Series I bond protects your funding towards inflation, which is a crucial drawback to investing in most bonds. And like different government-issued debts, these bonds are viewed among the most secure in the world despite the hazard of default.
Where To Get It
You can purchase Series I bonds at once from the U.S. Treasury at treasurydirect.gov. The authorities will now not cost you a fee for doing so.
5. Short-Term Company Bond Funds
Corporations once in a while elevate cash through issuing bonds to investors, and these can be packaged into bond money that very own bonds issued via doubtlessly thousands of corporations.
Short-term bonds have a typical maturity of one to 5 years, making them less prone to activity price fluctuations than intermediate- or long-term bonds.
Corporate bond cash can be an exceptional desire for buyers searching for money flow, such as retirees or those who desire to decrease their standard portfolio threat but earn a return.
Best Funding For
Short-term company bond cash can be appropriate for risk-averse traders who desire a bit extra yield than authorities bond funds.
As with different bond funds, momentary company bond cash is no longer FDIC-insured. Investment-grade non-permanent bond dollars reward traders with greater returns than authorities and municipal bond funds.
There is usually the threat that agencies will have their credit score downgraded or run into economic bother and default on the bonds. To minimize that risk, make sure your fund comprises top-notch company bonds.
Where To Get It
You can purchase and promote company bonds dollars with any broking that approves you to change ETFs or mutual funds. Most brokers enable you to alternate ETFs for no commission, whereas many brokers might require a fee or a minimal buy to purchase a mutual fund.
Users have been warned against a new malware designed to steal crypto from browser extension wallets such as MetaMask and Coinbase Wallet.
Security was never the strong suit of browser-based crypto wallets to store Bitcoin (BTC), Ether (ETH), and other cryptocurrencies.
However, new malware makes the safety of online wallets even more complicated by directly targeting crypto wallets.
P.S: Trade with a trusted Forex broker (LiteFinance)!
That works as browser extensions such as MetaMask, Binance Chain Wallet, or Coinbase Wallet.
Named Mars Stealer by its developers, the new malware is a powerful upgrade on the information-stealing Oski trojan of 2019, according to security researcher 3xp0rt.
It targets more than 40 browser-based crypto wallets, along with popular two-factor authentication (2FA) extensions.
Metaverse, Nifty Wallet, Coinbase Wallet, MEW CX, Ronin Wallet, Binance Chain Wallet, and TronLink are listed as some of the targeted wallets.
The security expert notes that the malware can target extensions on Chromium-based browsers except Opera. Sadly, it means some of the most common browsers such as Google Chrome,
Microsoft Edge and Brave made it to the list. Also, while they are safe from extension-specific attacks, Firefox and Opera are also vulnerable to credential-hijacking.
Mars Stealer can be spread through various channels such as file-hosting websites, torrent clients, and any other shady downloaders.
After infecting a system, the first thing the malware does is check the device language.
If it matches the language ID of Kazakhstan, Uzbekistan, Azerbaijan, Belarus, or Russia, the software leaves the system without any malicious action.
For the rest of the world, the malware targets a file that holds sensitive information such as crypto wallets’ address info and private keys.
It then leaves the system by deleting any presence once the theft is complete. Hackers are currently selling Mars Stealer for $140 on dark web forums.
Meaning the barrier to access the trojan is relatively low for malicious actors. Users who hold their crypto assets on browser-based wallets.
Or use browser extensions like Authy to utilize 2FA are warned to be cautious against clicking dubious links or downloads.
মানি ম্যানেজমেন্ট হল এমন একটি পদ্ধতি যার মাধ্যমে ফরেক্স ট্রেডাররা তাদের অ্যাকাউন্ট ম্যানেজ করে থাকে। ফরেক্স ট্রেডারদের জন্য মানি ম্যানেজমেন্ট খুবই জরুরী। একটি ভাল মানি ম্যানেজমেন্ট আপনার অ্যাকাউন্টকে ব্যাঙ্কর*্যাপ্টসি থেকে রক্ষা করতে সাহায্য করে। একটি ভাল মানি ম্যানেজমেন্ট ফলো করলে আপনার ক্যাপিটাল হারানোর সম্ভাবনা খুব কম।
ভাল মানি ম্যানেজমেন্টের কিছু নিয়ম রয়েছেঃ
১. অ্যাকাউন্টের ছোট পার্সেনটেজ নিয়ে রিস্ক নিনঃ
অ্যাকাউন্টের ছোট পার্সেনটেজ রিস্ক নেয়া কেন গুরুত্বপূর্ণ? এর কারন হচ্ছে আপনাকে আপনার অ্যাকাউন্ট টিকিয়ে রাখতে হবে। প্রথমে আপনার অ্যাকাউন্ট টিকিয়ে রাখতে হবে, তারপর প্রফিটের কথা ভাবতে হবে।
ভালো ট্রেডার তারাই যারা তাদের অ্যাকাউন্ট টিকিয়ে রাখতে পারে এবং এ ব্যাপারে সচেতন।
যদি আপনি কম রিস্ক নিয়ে ট্রেড করেন তবে কোন ট্রেডে আপনার লস অনেক বেশী হলেও চাইলে আপনি আপনার ট্রেডটিকে হোল্ড করতে পারবেন।
ট্রেডে আপনার অ্যাকাউন্টের মোট পার্সেনটেজের কম এবং বেশী রিস্ক নিয়ে ট্রেডের একটি উদাহরন নিচে দেখা যাক। দেখুন টানা ১০টি ট্রেডে লস আপনার অ্যাকাউন্টের কতটুকু ক্ষতি করতে পারে।
বিঃ দ্রঃ নতুন বছর শুরু হোক লাইটফিনান্স এবং iphone13 Pro MAX এর সাথে (বিস্তারিত লাইটফিনান্স এ)
২. হারান ক্যাপিটাল পুনরুদ্ধার করা কঠিনঃ
কেউ যদি তার অ্যাকাউন্টের কিছু অংশ হারায়, তাহলে তা পুনরুদ্ধার করা কতটা কঠিন?
আপনি যদি আপনার অ্যাকাউন্টের ৫০% হারান, তাহলে আপনাকে লস রিকভার করতে আপনার নতুন ব্যালেন্সের ১০০% লাভ করতে হবে। আর যদি ৭৫% হারান, তবে নতুন ব্যালেন্সের ৩০০% প্রফিট করতে হবে শুধুমাত্র পূর্বের লস রিকভার করার জন্য। তাই আপনি যদি একবার বিরাট লস করে তারপর সেই লস রিকভার নিয়ে ব্যস্ত থাকেন, তবে প্রফিট করবে কে?
এখানেই চ্যালেঞ্জ। চেষ্টা করে দেখুন ডেমো অ্যাকাউন্টে ৩০০% অথবা আপনার রিয়েল অ্যাকাউন্টে অন্তত ১০০% প্রফিট করতে পারেন কিনা। এটা অতটা সহজ হবেনা। মানি ম্যানেজমেন্ট এই জন্যেই গুরুত্বপূর্ণ।
৩. ট্রেড করার আগে রিস্কঃরিওয়ার্ড রেশিও হিসাব করুনঃ
যখন একটি ট্রেডে লস করার সম্ভবনা প্রফিট করার থেকে বেশী, তখন ট্রেড করা থেকে বিরত থাকুন। সবসময় ট্রেড করতে হবে এমন কোন কথা নেই।
১. ৪০ পিপস লস vs ৩০ পিপস প্রফিট
২. ২০ পিপস লস vs ২০ পিপস প্রফিট
২টি উদাহরনই বাজে রিস্ক ম্যানেজমেন্টের উদাহরন।
একটি ট্রেড ওপেন করার আগে এটা নিশ্চিত করুন যে রিস্ক:রিওয়ার্ড রেশিও অন্তত ১:২ (১:৩ রেশিও বা এর থেকে বেশী ভাল)।
এর মানে হচ্ছে আপনার এমন একটি ট্রেডই ওপেন করা উচিত যেটাতে আপনার লস করার সম্ভবনা থেকে লাভের সম্ভবনা ততগুন হবে। যেমনঃ আপনি ৩০ পিপস লস করার পরিপেক্ষিতে ১০০ পিপস লাভ করতে পারবেন এমন ট্রেডে এন্ট্রি করাই বুদ্ধিমানের কাজ।
আপনি যদি মানি ম্যানেজমেন্টের এই রুলসটি সঠিকভাবে মেনে চলেন, তবে তা পরবর্তীতে আপনাকে সাফল্য পেতে এবং স্ট্যাবল প্রফিট পেতে সাহায্য করবে।
রিস্ক:রিওয়ার্ড রেশিওর নিচের চার্টটি দেখুন। এখানে ১:৩ রিস্ক:রিওয়ার্ড রেশিও নিয়ে ১০টি ট্রেড করা হয়েছে।
একজন যখন কোন ট্রেডে লস করে, তখন সে $১০০ ডলার হারিয়েছে। কিন্তু তার প্রতিটি প্রফিটেবল ট্রেডে সে $৩০০ ডলার প্রফিট করেছে।
সুতরাং, দেখা যাচ্ছে কোন ট্রেডার যদি ১:৩ রিস্ক:রিওয়ার্ড রেশিও নিয়ে যদি ৫০% ট্রেডেও সফল হয়, তবুও সে ভাল পরিমান লাভ করতে পারে।