Posted by forex at 12:55 AM
Read our previous post
1. **Learn to Trade**Take free trading courses online at websites such as investopedia.com, actionforex.com or babypips.com to learn how to trade currencies online.You will want to learn how to buy and sell currencies, currency crosses, market orders, limit orders, stop loss, indicators, MACD, oscillators, stochastics and much more.You will also want to learn what hours are best for trading, how to find current events that affect the market such as commodity price changes, oil price changes, gold price changes and politics.Complete the training courses, and practice for four months before investing and risking your own hard earned cash.
2. **Practice**Open a practice account with a reputable broker online and begin practicing forex trading. Open an account with a company such as gftforex.com, interactivebrokers.com or forex.com to get started.All online forex brokers offer free practice accounts. Use the skills that you learned in the trading courses.Find one currency that works best for you such as USD/JPY, EUR/USD, GBP/USD, NZD/USD or USD/CHF. There are many others, but these are the main currencies being traded each day and therefore have the most movement. The US Dollar, Japanese Yen, Euro, British Pound (Sterling or Pound) and the Swissy trade much more than other currencies.Practice for at least four months before risking your own money.
3. **Set Up An Account**Set up a real trading account with your favorite online currency broker. You will want to know what the pip spread is for the currency that you plan to trade before you get started.You will also want to know what there policies are regarding rollovers and other details of your account.Some brokers will allow you to get started with as little as $250, however it is not recommended that you start with such as small amount. You should start with about $5,000 dollars.If you open a mini account they will allow you to use margin or leverage your money. For every $100 dollars you have in your account, you will be able to purchase $10,000 worth of currency or one lot.You will need enough money in your account to allow for fluctuations. Most brokers will sell you out of your currency if your currency goes too far in the wrong direction.