Take your time to read this post while I show you how to start trading on forex. Before you start the business of online currency trading or forex trading it is important that you have three basic things needed to trade and profit from online forex.
These three things are your mental Box which is your brain and this can be provided by you. However, there is need for continuous and constant training to develop your mental box. The other two things needed to trade forex are computer preferably Laptop and table and chair, what a very easy business you will say.
If you are thinking of investing in the forex market, the best way to go about it is to start slowly with discipline. Before you even start investing your money in this business, you will need to carry out enough research to understand what it is all about and what you need to do in order to be successful.
You will need to acquaint yourself with the risk management strategies as well as the important forex concepts before you start the trades.
There are some steps you will need to follow before you can start trading on forex and these includes;
1.Take a Course On Forex Trading
I will advise you first take a course on forex trading so you can get yourself acquainted with what you are about to get yourself into. It is not just about reading those post you googled. This is very important before starting to trade on forex.
Forex trade involve a risk, so you need to make sure that you reduce it as much as you can. To do this you need to find reliable forex trading info course focused precisely on showing you ways to ensure a high performance within the market.
2.Get a trusted forex broker
The first and most obvious step is to actually get a trusted broker so you have access to the market.
A broker is simply a certified middleman which carries out your trades. For that, the broker earns a small commission called the Spread. You need to find a broker who’s reliable, has a good support staff, provides a user friendly trading software, and is available 24 hours a day.
There are many brokers out there that are trusted. Joining is easy and free. Some even give bonus on sign up when you have make a certain amount in your trading account.
3.Open a demo account
This is very important before you start trading real forex. Do not make the mistake of opening a real account with any broker.Most brokers if not all provide demo account which you can trade with virtual money without risk.
This is done just to practice the fundamentals of trading. Don’t confuse demo trading with real-life trading. The good thing about the demo account is that it allows you to trade with as much money as you want, even though it is not real money.
You can therefore learn about the limits you need to observe while trading, the risks you are likely to be faced with and generally how the market works. When you transition you to a live trading account, you will be absolutely sure about what you are doing.
Never join any broker that don’t provide option for opening a demo account.
4.Open a Mini Forex Account
When you start trading using real money in a live forex trading account, be sure to start small. This requires you to make just a small deposit (a few hundred dollars). Then, you can begin trading for real. This is done to get a taste for real Forex trading. You should also test your trading system to make sure it works for you.
You can start out with as little as one dollar and then advance slowly as you refine your craft. If you find that you can trade the one dollar successfully without too much risk, you can advance to five dollars or ten dollars.
Even though it does not sound like a lot of money, if you continue investing regularly, your gains can be compounded over time and give you a sizable account. The risk you will be exposed to will be little with such money in your account.
5.Continue Learning and Increasing Trading Account
Learning how to trade forex is something that don’t end. You will also need to exercise a lot of patience if you are getting started in this business. Even though starting out small may seem slow, it will help you stay disciplined.
Always trade small and view the trades in terms of percentages rather dollars and cents. If for instance you have ten dollars in your live forex trading account, a ten percent gain will be equivalent to a gain of one dollar. If you lose one dollar, you will have lost ten percent.