Posted by forex at 4:19 AM
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1. Educate yourself by acquiring knowledge about the Forex market. Learn basic and advanced knowledge about fundamental analysis and technical analysis and the characteristics of the foreign exchange market. You can learn for free with these trustworthy sources: Investopedia, MSN Money, Yahoo! Finance, or Forbes.
2. Open a demo trading account to demo trade until you are satisfied with your results. Statistics have shown that almost 90 percent of all Forex traders lose money when they first start their trading careers. This is the reason why you should open a demo account to gain experience in the market and test your strategies first.
3. Pick a Forex brokerage house by choosing a Forex broker that satisfies your criteria. Choose the broker that offers the lowest spreads (the difference between the bid and ask price), the fastest execution speed, extensive tools and research, flexibility of leverage options and quality institutions. You may also want to pick a broker that offers a wide variety of account types to new customers.
4. Open a real Forex trading account. You can open a Forex trading account entirely online with no paperwork required. Most online Forex brokers now offer online applications for customers to fill in. Most brokers require you to fax in or email them your proof of identity and proof of address before they can validate your account. Once they have received the needed information, they will make your account active.
5. Fund your account. You can fund your account using various funding methods, including wire transfer, Paypal, online check, money order, and credit or debit card. Check with your broker to find out what options you have for funding your account.
6. Start trading and keep practicing at the same time. Trade to learn and learn every time you trade. In the Forex market, you should never cease to learn.