Posted by forex at 3:31 AM
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1. Learn to trade. This is a long process and it can take some people several months to learn while others can take several years. Don't look at currency trading as a get rich quick scheme, but as an apprenticeship where you have to pay your dues before you reap the rewards. One good place to start your journey to trading for a living is at BabyPips.com. This and its sister sites, ReviewPips and AskPips will give you some basic and advanced training and will also help you to set some realistic expectations.
2. Open up an account with a 'forex' broker. There are a a lot of fly-by-night brokers out there so you will want to read reviews before you give them your money. Start with ForexPeaceArmy.com and EliteTrader.com. These forums have hundreds of reviews about software, brokers and trading courses.
3. Find a trading system that suits your needs. Consider Forex Mentor, and Forex Stealth. Forex Mentor focuses on day trading the markets during the London session, with a goal of making 20 pips profit per day. With this program you will get a set of DVDs along with a daily webinar and some e-mail mentoring from instructor Peter Bain. Forex Stealth is a trading software that is simple to use and relatively accurate. Although you will need to know the basics of trading, it is nonetheless a useful tool to have.
4. Practice in a simulator for several months before you start using real money. This will give you the confidence that you need before committing real money. It will also show you the nuances of the markets that you won't be able to learn from reading a book or taking a course.
5. Trade during the overlap of the London and Asian sessions and during the U.S. and London sessions. There is more volatility during these times which will keep you from getting into trading ranges where the markets don't go anywhere.
6. Learn to trade the news. You will often hear not to trade 30 minutes before or after a major news announcement that can affect your currency pair because it will make it volatile and unpredictable. While you should never trade news announcements using technical indicators there are ways to exploit the volatility if you know how. Although it is initially complex to master it can also be one of the most consistent ways to make money in the currency trading markets.
7. Set a daily goal and stick to it. Once you have a good trading system set a goal of trying to make one to three percent of your account per day and stop once you have reached it. You should also set a maximum loss of 6 percent in a day. Either way once you have hit these goals, stop trading.