Posted by forex at 6:27 AM
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1. Learn as much as you can about trading and the Forex market. There are numerous resources that you could use in order to learn more about the market and how it works. Many traders find it useful to purchase books on the subject and study them relentlessly. You could also take an online Forex course from one of the many sources on the Internet. Some schools also offer Forex classes that will teach you the basics of currency pairs, how money is made, chart formations and other vital information. Try to absorb as much as you can about the market early on.
2. Learn a specific trading strategy that you can use for the Forex market. While you need to learn as much as possible about the basics of Forex, you also should spend some time learning about specific trading strategies. You could choose to learn a short-term scalping strategy, a mid-range swing trading strategy or even a long-term trend trading strategy. Whether you learn a strategy that is widely available or purchase a strategy that is sold commercially, you need to become very familiar with it. Learn all of the minute details so that you can implement it when it comes time to do so.
3. Practice trading with your strategies with a demo account. Every Forex broker should offer a demo account that you can download and use immediately. Implement a few of your trading strategies and try to determine which one you are most comfortable with. Every trading strategy will have some benefits and drawbacks associated with it. Every trading strategy will also experience losses, and you need to get used to the idea of dealing with them. The idea is to win more money than you lose in the long run. You do not necessarily have to win every trade to be successful in this market.
4. Open a live account with the Forex broker of your choice. You will need to deposit money according to the standards of the broker. Some of them will require an initial deposit of $10,000 or more, while others might only require a deposit of $500 or less. Once they open your account and process the funds, you should be able to start trading live. You will need to download their trading platform to your computer so that you can access the market.
5. Put your trading strategy into practice on your live account. Successful Forex trading will generally require a great time commitment. You need to watch the charts frequently in order to find profitable trading opportunities that match up with your system requirements. Stick to your trading plan, and enter and exit trades only when the rules of your system have been met. When you make a profit, periodically make withdrawals from your account so that you can protect your trading capital.