Posted by forex at 1:27 AM
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1. Learn as much as you can about Forex--the factors influencing a currency to increase or decrease in value, how economic and financial news impacts the foreign exchange market, and when and how central banks interfere in the currency market. Reading and analyzing information about Forex will help you become more knowledgeable--especially reading books by smart Forex traders.
2. Find a good Forex broker. You can start to look for a broker by reading the many Forex brokers reviews available on the Internet. The main criteria in choosing a broker should be the range of currencies and other instruments available for trade, the commission fees a broker charges, and the broker's reputation. You can check the 'legitimacy' of your broker with the relevant regulator of the country where the broker is registered (in the U.S., it's the CFTC, or the Commodity Futures Trading Commission).
3. Open a demo account with the broker you choose. Nearly all brokers allow anyone to open a demo account to check their trading platforms and to test your trading system. A demo account is free. It looks exactly like a real account, but the money that you will trade with will not be real.
4. Using the knowledge that you learned from the books on trading Forex, start trading different currency pairs on your demo account. Identify those pairs that you trade with the greatest success, and find and read books that specialize in those currency pairs.
5. Open a live trading account with your broker and start trading. Opening an account is easy, and it will take you about 10 minutes. You will deposit real funds to your trading account via a bank wire transfer.You should trade only those currency pairs that you had success with on the demo account. Buy and sell currencies when you are certain how the exchange rate will move. Be cautious. Remember that it is better to miss a good trading opportunity and not make money than make an unsuccessful trade and lose your deposit.