Posted by forex at 4:16 AM
Read our previous post
1. Learn as much as you can about the foreign exchange market. Find out what factors (e.g., economic and financial news releases) have an impact on the exchange rate movements. A good way to learn about the FX market is to read books on the subject. Most useful will be books written by star traders who have recent first-hand FX trading experience. You can purchase those books online or at a local bookstore. You also can check them out in your library.
2. Construct your own trading system. A good way to do that is to come up with a list of currency pairs that have exchange rate movements you understand and can predict with some certainty. Write down the rules or guidelines of how you can forecast exchange rate movements. These guidelines and rules will be your trading system. Test your system against historical data and see how it performs on a demo account (you can open a demo account with any brokerage firm).
3. Find a broker that trades foreign exchange, open a live account, and start trading. There a wide range of brokers available, e.g. ForexClub, Oanda, and Forex (see Resources). Check those firm's rates and reputation. A good idea would be to find a regulator of that firm (the Commodity Futures Trading Commission in the U.S.). Remember that all brokers have a minimum account requirement, i.e. the minimum amount of money you need to deposit with their firm to start trading. You can find out about a particular minimum account requirement at the firm's website. Opening an account is usually done online. The most popular way to deposit funds is through a bank wire transfer, although other options are sometimes available.