If you wish to learn FOREX and trade profitably then here are some hints & tips to get you going.
Trading FOREX can bring you a great regular income but it must be treated with respect. Like any other job trading requires training and practice. When you start a new job there is a lot to learn; you need to understand the company you are working for, your customers, suppliers, systems and people that you will be working with. It takes time and patience before you become excellent at all the aspects of your job.
It is no different when you study FOREX.
When learning to trade you need to become an expert in the following:
? FOREX markets
? Risk Management
? Trading Plans
? Brokers
? Trading Platforms
? Technical Analysis
? Fundamental Analysis
? Cycles
? Time frames
And perhaps the most important of all, you need to become an expert in yourself. An understanding of the psychology of trading is absolutely critical. How will handle the pressure of trading? Do you have the discipline to know when to make a trade and when to get out?
The list above looks like a lot and that's because it is!
You are not going to be a millionaire overnight in trading FOREX, but if you get it right then you can make a very good income either part-time of full-time.
One of the huge advantages of trading FOREX is its flexibility. As you begin to learn the subject you can practice trading around your existing job. You can trade 24 hours a day, 5 days a week so there are a lot of options.
Certain times of day are better to trade than others. These include when the UK/European market opens, when the US opens and closes. At these times you will see more momentum in the market as this is when the major players make their moves.
Practicing trading before you risk any money is also one of the key foundations for success. In order to learn about all the items listed above you need time to play. Why risk your own money during this time?
Here are the key steps in ensuring success to learn FOREX and make money.
1. Choose a broker. Make sure they are legitimate. Download (from their website) their version of the Metatrader platform.
2. Open a practice account with the broker.
3. Start playing with the trading platform, use the help files and introductory guides (see below) to try out different functions and features.
4. Create your trading and risk management plan.
5. Start a new practice account and trade as if you were following your plan. Keep practicing until you are consistently profitable for at 2-3 months.
6. Open up a small real account with your chosen broker. Use a micro-lot account. Start trading with real money using the same profitable techniques you have learnt with your practice accounts.
7. As you make money, gradually increase your pot size and trades. Ensure that you are still trading within your chosen risk management plan.
8. Scale up and compound those profits!
To learn FOREX and to trade profitably you must be patient and spend time and effort studying all of the different aspects of trading.
Follow the points outlined in this article and review the introductory guides that you can find at the link below.
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