Posted by forex at 1:34 AM
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1. Determine how much you can reasonably invest in forex trading by documenting your income, then subtracting all of your monthly expenses including loan payments, groceries, credit card payments, utilities, child care expenses, entertainment and child support or alimony payments. Forex poses the risk of loss as well as the potential for financial gain, so avoid investing money that you cannot afford to lose.
2. Research the forex trading system through online and offline resources to learn how the system works, and how you can use strategies to maximize your potential for gain.
3. Open a demo account with a forex broker online. A demo account allows you to make practice trades using live data, but does not involve using real money. Practicing trades with a demo account can help you refine your decision-making skills and trading strategies.
4. Open and fund a live forex account with an online broker. Make several small trades using your own money to test your strategies.
5. Choose the forex broker's margin option to increase your trading power. A margin option allows you to invest as much as $100 of borrowed money for each dollar of your own money. This allows you to make large trades that can generate sizeable profits from a small currency fluctuation; however, it can also put you in debt to the broker if you lose money on your trades.
6. Use a forex trading robot to handle trades when you are not available to actively monitor currency fluctuations. A forex trading robot can automatically make trades based on the parameters you set.