Posted by forex at 9:32 AM
Read our previous post
1.
There are many currencies to trade.
Open an account with an online currency broker, and deposit the amount of risk capital you have available for trading currencies. Your broker should also have a practice account you can access, which will allow you to trade actual currency market prices without risking real money. Open the practice account and read the instructions so you understand how to enter and exit currency trades.
2.
A currency trader should never gamble with their account.
Pick a currency pair to trade in your practice account. Analyze the pair using the charting package that comes with the practice account, or use a separate charting program if you already have one set up to use for currency trading. Place your trade, and follow the price action of the currency pair by using your chart.
3.
When a loss occurs, do not overtrade your account trying to get revenge.
Place a trade in your real money account once you are consistently turning a profit in your practice account. Most brokers allow you to trade a mini lot, which is 1/10 of the size of a regular currency trade. Place a trade using the currency pair you have practiced with, and use only one mini lot until you are comfortable trading a larger size.
4.
Stay calm when you lose, and be humble when you win.
Use the same trading methodology for your real money trade that you use for practice trades. Your emotions should not affect your analysis, and you must allow the trade to unfold the same way you do when trading in your practice account. Follow your real money trade on the chart, and use the exit strategy that you employ for practice trading.
5.
Discipline is the key to successful currency trading.
Return to practice trading if your emotions affected your decision to exit. You must be disciplined if you are going to be a successful currency trader. It will take awhile to become emotionally detached from your trades, but in time you should be able to achieve the same results in your real money account that you get when you practice trade.