Posted by forex at 9:16 AM
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1. Download the software for a demo account from a Forex broker onto your computer. With a demo account, you can choose how much virtual money you want the account to have for trading. Try to choose an amount that is realistic compared to what you will actually be investing. This way, you can make the simulation as realistic as possible.
2. Find a trading strategy that you can implement. There are numerous Forex trading strategies out there that you could potentially try. You can research manual trading strategies on Forex education websites, or you could even take a class. There are many commercial products that are readily available that were developed by Forex experts. These strategies can be implemented quickly by potential Forex traders. Reading forums and reviews can help you save time by seeing what other people think of a trading strategy before getting involved with it.
3. Try your trading strategy out on your demo account. The advantage of working with a demo account is that you can see how a strategy works before putting any of your own money at risk. You will get live pricing data from the Forex market, and you can place orders just like you would be able to with a live account. If you do not see a profit with your trading strategy in a demo account, there is no reason to proceed to a live account. When you find a strategy that works well in demo, you can move on to a live account.
4. Open a live account with a Forex broker. This will require you to fill out an application form and provide the broker with identification. The broker will review your application and then open the account assuming there are no problems. Then you can fund your account with trading capital. You can usually provide the trading capital by using a credit card or a bank transfer or writing a check. The broker will then process the transaction and fund your account with the money.
5. Implement your trading strategy. Once your account is funded, you can immediately begin trading the market. Stick to the strategy that you used successfully in your demo account. Many people are tempted to trade differently with real money, but you should stick to the system at all times. Having specific rules as to when you should get into and out of a trade allows you to eliminate any emotions. Discipline yourself to stick to the trading strategy even if you experience several losses in a row. If the strategy is legitimate, you should win consistently enough to generate profits.