Posted by forex at 4:26 AM
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1. First you need to decide what kind of trader you are. Scalper? Day trader? Swing trader? Each different type has completely different setups, charts, mentalities, indicators, trading times, etc. The main difference is the length of time each one holds a trade. Scalpers sometimes hold trades for as little as a couple seconds. Day traders generally hold trades from a couple minutes to just a few days. Last but not least swing traders hold positions for the long term which could last years. Think about how much time a day you can put into trading. Actually think about how much time you want to put in. That would be the main thing. Don't let trading consume all your time or over trading can consume your equity dry.
2. Pick only a few currency pairs to work with. Study their movements. Think of each one as having a personality. Get to know them. Learn how they react to certain things such as support and resistance levels, news reports, world economic factors, etc. Try to imagine they are a person your meeting for the first time and you want to know everything about them. Thinking this way has helped me enormously. I really don't know if I would be successful today without thinking this way.
3. Once you've done step two of this article picking indicators and news reports should come a lot easier. Be sure to write down everything you are learning. What I did is picked three currency pairs. The EUR/USD, USD/JPY, and the GBP/USD. I made MS word documents for each pair and typed in everything I was learning and continue to learn about the pairs. It will differently start to come more naturally as your progress. You'll start to instantly see price setups, be able to more easily predict movements, and progress from a new trader to a successful one.
4. Whatever you do. Be sure to keep a journal. Write down all your trades. Include the currency pair you choose, the price you bought or sold it, the price you closed the trade, your profit or loss, why you took the trade, and what you could have done better if any. Why you took the trade is actually the most important part of this. You need to have a reason for making a trade. Do no just blindly enter a trade on a gut feeling or in the long run you will lose guaranteed.
5. Hopefully this got you started. Remember just because foreign exchange trading is more easily accessible nowadays does not mean its an easy market to make money. It takes determination, an education, and most importantly time to develop into a successful trader. Thankfully as far as an education goes everything you need can be found on the internet for free.