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You can learn how to trade forex whether you are a beginner or a veteran trader who want to make a switch to the forex market. Forex trading is very lucrative. However, it is not for everyone. The psychological and intellectual challenges are enormous. By following these simple steps below, you will learn how to overcome the challenges and become a successful trader.
Steps
1.) Start by seeking an education about forex. Education is your key to getting started with forex trading and your education never stops. Find someone who trades daily for a living. Someone who really does make money trading forex. You will sure come across many who talk the talk and sell books and expensive courses, but will never let you into see how they really trade. Please make sure you learn from someone who really does make money trading forex. Your teacher does matter a lot.
2.) Once you find a successful mentor or teacher, they will guide you through the necessary steps to follow. Your goal is too become like your teacher a successful, independent trader and why not you can even surpass their performance. During your education, you can open demo accounts with different brokers and test the trading platforms without risking real money. By demo trading with different brokers, you will be able to identify which platform you are more comfortable with. Do this until you complete your training with your mentor or teacher. Until they confirm to you that you can trade live account, or until you are convinced you understand how the markets operate. Some good traders, traded demo for more than 3 years before switching to real account. You may be smarter and need a shorter duration to go live. What ever you do, trade a demo account for at least 6 months.
3.) Keep a record or a journal of the trades even on a demo account. This is easier said than done. But if you keep a record of your trades, both winning and losing trades, you can learn a lot from them. You will consistently see what you are doing wrong in the losing trades and what you are doing right in the winning trades. All you do after evaluating these trades, you simply duplicate the correct actions and eliminate the mistakes. Without these records, you will become frustrated and quit this very lucrative opportunity. You will learn this from your mentor or teacher. If they are successful, they sure do keep journals of their trades. Follow your mentor's advice.
4.) Once you have a mentor, and you have your demo accounts and you are keeping records of your demo trades, you are on your way to overcome the psychological and intellectual challenges that plague many new forex traders. Do this through out your first six months. Implement any new strategy you learn from your mentor keeping the records. These will help launch you into a new and successful forex trading career.
Tips
- Never trade with a live account when you are just starting out.
- Always use an initial stop loss when you place any trade even on your demo accounts.
Warnings
- Forex trading can become very devastating to your finances, if you jump into it without a proper education and the right mentor to guide you
- Forex trading is very risky and it is not suitable for everyone.
Credit to: http://www.wikihow.com/
