So it’s coming up on that time of year again when I look into what I want to do investment wise or with the stock market and lots of times, my research brings me to one of the weirdest things I’ve found yet.

The Forex market is the global market for trading currencies (which, quite honestly, until this week I didn’t even know was a thing – that’s my favorite part of writing about personal finance, there’s always something new to learn about!!). This market is actually the major player in determining how currencies stack up against each other.

I’ve got to say, one of the things I like most about the Forex market is that most firms will let you “play” first – just like some of the stock simulators that I’ve been using for years.

The Forex market can be tricky to navigate during your first investment attempt. It has potential to help you make a great deal of money in a short amount of time. However, it can also be a quick way to lose everything you invest.

Know Your Limits

Invest in Forex only what you can afford to lose. You don’t want to wrap all of your money up with investments, especially when they can vary as much as this. Always make sure your bills are paid and expenses are covered. Think of this money as “play” money to do with what ever you want. This way, a failed investment isn’t going to impact your survival or household stability. Forex investing is for experimenting – not for long term, careful, financial planning.

Start With Practice Accounts

Many investment organizations will have practice platforms that work off of real-time statistics with Forex. This gives you time to learn the ropes and iron out your strategies before going live. You can lose money rather quickly if you don’t have an idea of what you’re going to be doing in the exchange.

Knowledge is Power

Learning everything you can about Forex before you start can be of great assistance. It is vital that you understand the terminology and what all of the different charts mean. Without this knowledge, you could be making costly mistakes. Perhaps you can build a blog about your experiences, which gives you a chance to share with others everything you learned while giving you a system you can go back and read. I actually haven’t found a Forex blog yet… you would have to be super into it to be able to make it constantly interesting. Although the roller coaster of your investment would probably be something people wouldn’t mind a glimpse of.

Start Small

Don’t invest like Warren Buffet. People like him have excessive amounts of money to burn. Start your accounts small until you get the hang of what you’re doing. This way, you’ll limit your losses and still have cash in your pocket should the investments fail.

Accepting Defeat

Acknowledging losses is where many investors may fail. The Forex can fluctuate greatly, and some people will hold onto an account in the hopes that it will increase over time. Unfortunately, some currencies suffer a blow and will stay low for extended periods. You need to accept the loss and move to the next transaction before all of the money is depleted. It’s better to lose 20 percent of the investment rather than 80 percent.

Actively Monitor Your Account

Because the Forex market fluctuates so greatly, it’s beneficial to you to keep an active eye on your accounts. Thanks to technology, most reputable brokers have apps available in which to give you control from your smartphone or tablet while on the move. The wise old advice of set it and forget it? That doesn’t apply here – which is generally a pretty good sign you’re in “play” money territory any time.

The Right Frame of Mind

Being in the right frame of mind for trading Forex can help you establish success. Many people get emotionally attached to their money, which affects your capacity to rationalize losses. Think of it as a business which centers around finances. It can help you maintain clear focus and realize certain expectations for success or failures.

One of the most powerful tools you can have with any finance assistance is that of a proper Investment Group. You can find valuable information on the Pete Briger wiki, for instance, which may help you learn more about those organizations. When you begin investing in the Forex market, any help you receive can be a boon to improve your chances of success.

So what do you guys think about the Forex market? Viable investment (on a “play” money scale) or a Russian roulette type move with your money?