Posted by forex at 8:45 AM
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1. Learn about foreign exchange for an extended period of time using books and authoritative online resources like BabyPips before you open an account. The time spent performing basic research on the market before risking your money will assist you in evaluating different analytical methods. In addition, it's a sensible idea to ensure that your personal finances are solid enough to risk money on the forex markets. New traders often lose money for a period of time until they gain sufficient expertise.
2. Select a technical method to specialize in before trying to use multiple methods at once. Popular technical analysis methods include Japanese Candlesticks, Fibonacci patterns and the study of resistance levels.
3. Network with experienced traders using the technical methods that most interest you. You can find communities of traders at online forums, through related blogs or at investment clubs through local universities or elsewhere. Interested friends can point you toward books, newsletters and other resources that can advance your trading knowledge.
4. Practice trading with a virtual forex account before you open a real one. This gives you practice in reading charts and making decisions based on them. It's easier on the emotions to trade a practice account, but it's a sensible idea to test out your methods before you start risking real money.
5. Open a forex brokerage account and start trading. The only way to advance your learning to a serious degree is to practice with actual money. The emotional and intellectual challenges related to trading with a live account will assist you in developing the rigor of a professional trader.