How To Start Forex Trading?
There are a lot of opportunity in forex trading. You can make additional income or increase your wealth. But the question is, how to start forex trading. In this article, we're going to look at the things you need to do if you want to start forex trading. If you want to be a successful forex trader, these are first steps you have to do.
1. LEARN FOREX BASICS
If you are a beginner in forex trading, first you need to understand basics of forex.
2. OPEN FOREX ACCOUNT
You need to open forex account in forex broker to be able to trade forex. Unfortunately, there are hundreds forex brokers out there. You must pick the best forex broker that suits your trading needs.
If you have never traded before, start a forex demo account. It takes just five minutes of your time to open a demo account, costs you nothing and allows you to safely experience the forex market. Practice on a demo account with virtual money to understand how to use the trading platform software.
If you are ready, go open a real forex account. To learn about actual trading and to get a real feel for being in the market you need to trade on a live account. Deposit real money and start making profits in forex trading.
3. USE METATRADER
You need to download trading platform software to be able to trade forex. Most popular software used in forex trading is MetaTrader. It's free to download and use.
4. LEARN A LOT
It is highly recommended to anybody interested in learning how to start online forex trading to read as much as possible. There are several things that you should learn in order to become a successful forex trader:
First you need to learn to analyze the market. Usually trader uses Technical Analysis or Fundamental Analysis to read the market. Technical Analysis involves reviewing charts or historical data to predict the direction of the currency. Fundamental analysis involves looking at a country's economic fundamentals and using this information to influence your trading decisions.
Later, you may want to create your own Trading System. Solid Trading System usually incorporates 3 pilars in trading:
- Money Management, determines how you manage your risk and money
- Trading Strategy, determines how you enter and exit the market
- Trading Psychology, determines how you control your emotions so that bad emotions such as greed and fear
The road to become a successful forex trading maybe a long and sometimes painful process, but if you succeed, the reward is also plentiful