Is Forex trading in India profitable? 5 tips for Forex trading before you start investing

Before we even begin putting our capital on any investment, we would definitely like to know the comprehensive aspect of the market whether it will bring returns or it will bite of a big chunk out of our savings. Here in this article, we will discuss the profitable aspects of trading currency pairs or also known as Forex. Out of all the trading tools like CFDs, Cryptos and Commodity, Forex is such one of the tools. Many people jump straight into it without evaluating the pros and cons of this tool, without understanding the basics and end up without making any profits. If you give yourself sometime to analyze the market, learn how to use the proper method and tools, you could one of those few who could make out a handsome profit from trading Forex.

First of all, let’s understand what a Forex trader actually is and how it may or may not be different from other kind of traders. A Forex Trader or Foreign Currency Trader will trade on Foreign Currency Market by buying and selling currencies on Global exchange market. For a Forex trader, the scope might be huge ranging from a small scale amateur trader to huge financial firms. Professional Traders can also make profit from the trade or earn a salary by working for big firms.

If you want to really put effort into Forex Trading, here are 5 tips we highly suggest you to start following:

Generally for Indian Market, Currency trading is regulated by NSE and MCX exchanges. There are other bodies like BSE, but the volume is considerably low compared to other traders. The following currency pairs which are traded in India, with maximum returns being USD-INR.

• USD-INR

• EUR-INR

• GBP-INR

• JPY-INR

For beginner traders, it is highly recommended to focus on the process and less focus on the result. Trying new methods and learning new techniques will hone your trading skills which will eventually bring more returns. The step by step process, setting and completing small milestones will boost yours confidence while maintain the risk level at the minimum.

As we have discussed about demo trading in the previous article  What is Forex Trading Demo account?  It is one of the most crucial tool for an amateur. A demo account not only provides you a safe environment to try a new market but also a try out each every tool different brokers have. You can take out your time to set a demo account right away on  Mitrade. 

With the emerging market, the options for trading platform are more than ever. The more options we have, the more confusing it gets. Choosing the right broker is a very crucial part of the trading, as it will also impact your initial experience as a forex trader. The broker should good historical records, reliable, well regulated, with good reviews and most importantly provide security to it client.

The path of a trader is full of ups and down. Even the experienced trader sometimes have to loose money. Majority of the successful trader happens slowly. It involves lots of trials and errors. Once you set your own pace, realize your own dos and dont’s, only then you will move steadily towards your goal.

We all trade with expectation to win more and more but it isn’t necessary that we will win all the time. On the contrary, we could even have loosing streaks. This could be a crucial point where we take a break and reflect on our mistakes. Pondering on our mistakes and changing course will only help us become a better trader, which will help us in the long run.

With the hope of earning everything at one go, most of the newbie traders buy lots of order without considering the risk of loosing it. This not only demotivates them but completely break any chance to win more in future opportunities. Setting 2% risk on each trade is manageable and will not harm your savings.

Knowing where you are ahead, will only make you go further in the right direction. In volatile market as Forex and Currency Derivatives where changes takes ups and downs any moment, it is advisable and common sense to set your goals.  Deciding how much your willing to risk and how much you want to get out of your trade, techniques and analyst you will follow will put you in a much better safe space while trading.

Most of the new traders gets carried away with lucrative ideas and plans and fail to do a in-depth research of their target market platform. An accurate market research will prevent over-optimistic forecast. Improper research will only result in over and under estimation of your investment which will only make you loose more and more.

A seasoned trader will only tell you to keep your emotions out of the business. It’s a natural thing for human to carried away with emotions and base our decision on it. But as a trader, we have to understand that the world doesn’t revolve around us. Evaluating the situation calmly and rationally will only help us understand the in-depth problems.

Many people try their luck on forex trading and only few people make money from it and even fewer make riches out of it. The answer to the question is yes, it is profitable if done correctly. But if you are miscalculating your investment and leveraging more than you should, you will eventually end up loosing your money.. Forex trading requires a good understanding of technical analysis and proper knowledge about price actions. The market can be a very humbling experience for us, the only way to figure out is to explore and find out.