I’m venturing into the world of forex and cryptocurrency trading, and I’ve set aside a budget of approximately $2,000 to kick-start my trading journey. While I have some experience with buying and holding stocks, I’m entirely new to day trading and the forex market. Additionally, I’m eager to learn crypto trading as well. I’m considering self-education through free courses and resources, but I’d greatly appreciate some advice and insights from experienced traders before I take the plunge.
What should I be mindful of as I embark on this journey of learning forex and crypto trading? I’m particularly curious about whether it’s advisable to use margin in these types of trading. Your guidance and expertise will be highly valued.
Salam,
Congrats on setting aside $2k to start this journey. My first trade was about 15 years ago, and started with a lot less than that.
Some basics you may want to consider:
- Focus on a handful of index’ or cryptos only. Learn how they move, the correlations, dynamics, trends etc. You can easily get overwhelmed with the amount of info out there so it can be better to narrow your focus and become an expert on a few.
- Focus on top assets to start with. Less risk, and you can make money if there is enough volatility. For instance, Tesla did a 13% jump in a week this month.
- Learn technical analysis. It will give you more confidence when trading as the charts can support your decision. UrbanForex on youtube is a good channel. Some of the videos are 5 years old TA is timeless.
- Dont forget about fundamentals specialyl with FX. Global events, news have a huge impact on FX but also almost every other asset.
- Spread your money across 5 or so different assets to spread your risk. Never put all your money in one asset.
- If trading crypto always put a stoploss. Crypto is very volatile so to avoid cancelling your own trades, look at the average daily volatility and adjust stoploss accordingly.
None of this is financial advice and there is no right or wrong with trading. The best way to learn is to just do it. Your psychology and behaviour will be different from those you are learning from, so trying to copy others’ strategies rarely works because your personality is different. Also, fake money trading is very different from real money trading, so I don’t recommend spending too much time or effort on simulated trading accounts. Just start small and protect your $2k with stoplosses before thinking of making gains.
Lastly, have fun and definitely avoid margin trading. Its generally considered haram and only really for very experienced traders. You can read more about that at https://cryptoummah.com/is-leverage-trading-halal
