Arguably, the biggest issue facing new traders is to simply comprehend the sheer size and complexity of the Forex market.

No matter whether you are trading part-time, full-time, or casually, the worst possible thing you can do is underestimate the market’s power, along with its varying levels of volatility.

Commit to trading, strive to learn the ins and outs of Forex, and learn to appreciate the potentially complex nature of what you’re doing.

Your Margin determines your capacity

Another matter that needs to be addressed extensively is budgeting, with this also tying into the actual type of trader you want to be.

Budgeting and determining the amount of money you have to invest are of the utmost importance, as your Forex trading efforts will need to be bankrolled.

For example, if you enter the Forex market with full-time trading aspirations, you are going to hit a brick wall time and time again if you don’t have the right budget in place.

Considering Environmental Factors

Forex is an investment market that is ever-changing; thus, it is something that needs to be committed to in order for it to be a profitable venture.

When you take a look at the options you have, you need to seriously address how much time you are able to commit to Forex trading.

Are you available to trade around the clock? Are you looking to trade around work commitments? Are you simply looking to dabble in the market?

Ask yourself these questions to determine how committed you are to Forex trading, along with what your free time allows for.

Recency bias can get you caught in the moment

Following on from the above, from the moment you start Forex trading, you are going to have various terms thrown your way, one of which is surely going to be “recency bias“.

Recency bias relates to when a Forex trader becomes increasingly influenced by recent Forex trading results, largely ignoring the bigger picture of the market as a result.

Considering the sheer excitement that Forex trading can generate, it’s no shock to see that many new traders get “caught in the moment“.

The problem with this is that it can disrupt any trading strategy you have in place, as when you are only thinking about the now, you could find that your bottom line suffers as a result.