Forex trading training is absolutely necessary if you are planning on entering this money making avenue. With a solid foundation, trading the forex market can be a rich and rewarding experience. Diving in headfirst without any training is more likely to end up in a disaster.
I’ve had several friends ask me about the best ways to get started in forex and I thought I should put down what I’ve learnt in an article so that it could come in useful to anyone who wants to start but does not know how.
I think this is absolutely crucial before you start trading. In fact, your financial situation will determine how much you can afford to trade and how much you can afford to risk.
I always advise against using the money that you need to pay your monthly bills. You should only trade if you have disposable income that is not needed to pay your daily bills. Basically, use income that you are prepared to lose and won’t place you in any financially difficulty.
I’ve said this before but it bears saying again, educate yourself before you put down any money. There is a lot to learn about forex trading. The better informed you are, the better your decision making skills and the lesser the chances of you making losing trades. Be prepared to learn from a wealth of resources and be patient.
Now that you’ve understood how it works, it’s time for you to find a forex broker. What you should know is that every broker operates slightly different. They have different trading styles, different minimum account balance and different fees.
Ask around so you can find one that suits your requirements and your goals. As an additional safety measure, only trade with brokers who are regulated. Check references and credentials and always do you’re due diligence.
By now you have all the forex trading training and the forex tools that you need to get started, and you are raring to go and put into practice all that you’ve learnt. Before you do any actual trading though, it is good idea to try it out with a demo account.
Most brokers provide a demo account that has all the forex trading features that you would find in a real account. This allows you to develop and test your trading strategies without losing real money. If you are consistently losing money in the demo, you know that you are doing something wrong.
It makes sense that you do not switch over to the live trading until your demo trades start making money. Demo trading provides you with the perfect buffer between the ‘classroom’ and the ‘real world’ of forex trading.
You’re done practicing and it’s time for some real trading. Your profits and losses are going to be real. This is it. This is what you’ve been waiting for. Now if you've really studied hard and have taken you're forex trading training seriously, you should be off to a flying start.
If you’ve had a winning streak with the demo account, you’re likely to be tempted to engage in large trades. Don’t. That’s the biggest mistake you can make. Always, always start small and only with money that you can afford to lose. I’ve seen people go bankrupt overnight because they got in too deep right at the beginning.
Overconfidence and impatience can play havoc with your judgment. When you are trading forex, you need to be cool heated and patient so that you can make the right calls about when to get in and when to get out of a trade. Whether you are trading regular forex or you are engaged in forex scalping patience is the key.
I have a lot of tips that can add to your basic forex trading training and I’m always happy to share. Contact me if you have any questions or if you want to know more about forex trading.