Forex For Beginners
5 Steps To Help You Get Started
Forex for beginners is easier today that it has ever been before. Earlier, forex trading was limited to larger players with bulging bank accounts.
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The introduction of margin trading in the 80’s changed the nature of the game by allowing smaller players to participate by investing a small percentage, called a margin account. The question I get asked a lot is can you really make some serious money with forex trading? My answer is yes. Trading in the forex market is a relatively straightforward endeavor and anyone can participate in it. |
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However, how much money you make with forex trading will depend on
how much time you spend on learning the basics and how you implement
what you have learnt.
Here are 5 first steps that will set you on the path and will help all forex for beginners to get started.
Step 1: Conquer the Learning Curve
By Educating Yourself
Forex trading may be fundamentally simple and straightforward but that’s only after you’ve taken the time to learn the basic dos and don’ts. Spending some time learning as much as possible about the market and how it works and enhancing your forex trading skills will help you avoid making any expensive learner’s mistakes.
Step 2: Find a Good Broker
You will need a broker to handle your transactions but don’t be in too much of a hurry to team up any broker. Do your homework. Look for a broker who is registered with the Commodity Futures Trading Commission (CFTC) so you know you won’t get scammed.
More importantly look for a broker who offers the services and features you want and who fits your trading style. Speak to several before you pick one who you think will work best for you.
Step 3: Time To Open Your Account
You know the basics and you’ve found a broker it’s time now to open your forex account. This is probably the simplest part. You simply fill in a form with your personal info and you’re done. One of the things you will find on this form is a ‘margin agreement’. This gives the broker permission to intercede in any trade that appears too risky because after all, you will be trading using the broker’s money.
Once your account is opened, you can fund it and commence trading. It’s not so difficult to get started, is it? However, there is one more thing that I would recommend before you put down any greenbacks and that would be step 4.
Step 4: Practice With Paper Trading
I would advice any newcomer to forex to practice with a few paper trading sessions. Most online brokers have demo accounts that allow you to make free paper trades for at least a month. Paper trades are an excellent way for you to see how the system works without using any money and they help you get familiar with how to use the different software tools that you would be working with.
Step 5: Devise a Forex Trading Plan
It’s not easy but taking the time to devise a forex trading plan based on the principles of fundamental and technical analysis will take the guesswork out of forex trading and will help you make more focused and objective decisions instead of letting your emotions control your decisions.
When you are new to forex trading, it’s only natural to have a lot of questions on your mind. Please know that when it comes to forex for beginners I’d be glad to help you in any way I can. Just drop me an email and I’ll get back to you as soon as possible.
