As there are several forex brokers with ZAR accounts, it is not a tedious task for a South African to involve in forex trading. However, being successful is a tedious task that you can master by considering the following factors.
Patience
Most beginner forex traders will not know the importance of patience in the market. A person who is willing to make millions within two days of trading will end up only in losses. If you are in such a hurry, you will go for trades more than what you could afford. A slight negative movement in the market will also be capable of destroying your investment. Hence, you should wait patiently until you get the right knowledge and chance to succeed.
Planning
Whenever you involve in trading activity, you should have a plan of entry and exit. You should devise a plan for both profits and losses. As the market could go both ways, you should have a minimal profit in mind along with a stop-loss point. Also, you should stick to the plan regardless of the market movements. If you end up making a random decision and commit some actions out of the plan, no one could save you.
Conscious leverage
You will get a luxurious opportunity of using leverage to trade with unaffordable sizes also. However, this option comes with both advantages and disadvantages. While the advantage is the possibility of earning huge profits out of the small investment, the disadvantage will be the risky factor of losing everything you had in the beginning along with an additional due in some cases. Most people will not care about the negative side of the leverage option and will go with huge trading actions. However, you should use the leverage with all your consciousness.
Stop loss
Let us assume that you are in a trading position with a loss of 15 pips at the moment. Although you can expect that the market will move up from here, the chances for further losses are high. So, your guess will go wrong and you would have to lose more. Instead of losing this much money, you can set the stop-loss order at a loss of 15 pips. If you do so, the trading position will remain open if the value is anything above a loss of 15 pips on the positive side and will get closed once it reaches a loss of 15 pips. So, you need not lose anything more than 15 pips for that trade.
Emotions
The primary factor that will take you to enormous losses is your emotion. If you take your trading results emotionally, you will make senseless decisions out of despair. You will move out of your plans and will end up losing more than what made you go mad. Instead, you can convert your losses also into profits if you plan according to the situation without getting emotional. So, emotion management is vital when you are involved in forex trading.
