Posted by forex at 4:54 AM
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1. Learn as much as you can about trading currencies. Read books written by famous currency traders and investors (e.g., 'The Alchemy of Finance' by George Soros). Read currency market reports in financial publications such as 'The Wall Street Journal' and the 'Financial Times.'
2. Learn foreign exchange trading by trial-and-error on a demo account. A demo account is just like a real account, but the money is not real. All good online Forex brokers allow anybody to open a free demo account to test their trading platforms.When trading, closely follow the news wire (your broker will provide one in the trading terminal), and read stories in the business news agencies such as Bloomberg.Analyze your mistakes, and try not to repeat them.
3. Devise your own trading strategy or system. Your trading strategy needs to take advantage of some currency market inefficiencies. It's easier said than done, of course. Not many people can come up with good trading strategies, but those that do are true masters of currency trading.
4. Test your strategy on your demo account and, if it is successful, open a live trading account, deposit funds and start trading. Trade as close to your strategy as possible and do not deviate from it, even in panicky markets. If you feel the strategy is underperforming, stop trading and revise it thoroughly.