Posted by forex at 6:12 AM
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1. Open a demo account with an online Forex broker. A demo account is just like a real trading account but the money is not real. All good online Forex brokers allow anybody to open a demo account to get familiar with their trading platforms.
2. Devise your own trading strategy. A trading strategy is a list of rules and guidelines that a trader uses when buying and selling currencies. For example, you can buy currencies with high interest rates and sell those with low interest rates, taking advantage of the so-called carry trade--borrowing in low-rate currencies, and buying high-yielding currencies.To devise your own strategy, read Forex books and Forex-related commentary and analysis on business news sites like Bloomberg and Reuters and in publications such as the Wall Street Journal and the Financial Times--both of which are also available online.
3. If you have success trading according to your strategy on a demo account, open a live account, deposit funds and start trading. Opening a live account is done online and takes less than 10 minutes. You can deposit funds into your trading account via a bank wire transfer, which typically takes two to five days to complete.
4. If your trading doesn't produce consistent profits, stop trading and revise your strategy. Analyze why your strategy is not yielding the expected results. Make changes to the strategy and test the revised strategy on a demo account. If it works well, use it in the live account.