Forex was my choice of how to achieve diversification and I have been trading forex for over one year now. Forex trading is a bit different that trading stocks so I had to make some adjustments to my trading strategy and try a few new things which took my roughly six months to accomplish.
Now I have moved 50% of my trading portfolio to forex and keep 50% in stocks. I trade forex as it is a great way to diversify any trading portfolio and adds a nice boost to my monthly earnings. Right now I am working to becoming a full-time trader and quit my job. I think I am about 18 months away from that which is a nice target to strive for. Maybe by end of the summer in 2015 I will be trading for a living 100%.
I am glad I made the move into forex and am also planning to add commodities to my portfolio in order to diversify once again as my trading portfolio grows. I plan on moving 20% into commodities, and keep 40% in stocks and forex.
Here are my three tips for all newbies:
Tip #1: Be very patient. It requires plenty of time and hard work to achieve consistent profits and it does not happen over night.
Tip #2: Have enough trading capital. It does not matter if you trade forex, stocks or commodities; you need to have trading capital. I would recommend at least $5,000 in a mini account and over $25,000 in a standard account. Trust me, with $500 you are not really in a position to manage a portfolio properly. Build up your account over time which comes back to being patient.
Tip #3: Don't listen to others. Build your own trading strategy. This will take a lot more time and money, but in the end you will have something which works for you.
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