In the past, I was like you, I was a beginner Forex trader. I would make extra money, quit my job and earn a living trading in the foreign exchange market. I used to be what you want to be now. Looking back now, I really wish someone had shared some advice on forex trading when it was just getting started.
I made some terrible mistakes. I made some mistakes that I knew I shouldn’t do, but I did them anyway. My mistakes cost me thousands, literally thousands of dollars. Why did I lose so much money? Because I completely ignored the good advice on forex trading.
The sad part is that you are also likely to ignore the important tips for currency trading. Why? Because 95% of beginner operators do. They believe they are the exception. They believe that the rules do not apply to them.
Listen, from grocery store to grocery store, read this article very carefully. He has some great advice and funded stock trading accounts advice from someone who learned how to trade the forex market the hard way.
1. Practice. Practice. Practice.
It sounds simple, it sounds insignificant. It even sounds boring. But trade is like everything else in life: you have to practice to be good at it. The good news is that you can practice currency trading for free: all you have to do is open a demo account at any currency broker.
Just go to a search engine and type ‘demo forex account’. Choose a broker, follow the instructions and you can trade in real market conditions in minutes, it’s true, not hours or days. You can exchange a demo forex account with real market prices in minutes.
2. Trade in a system.
Once you open your demo account, research and learn the basics of trading. Find out why the foreign exchange market is open 24 hours a day. Learn what market trends are and how to make money from them. Learn some basic indicators: moving averages, candles and trend lines. Don’t be overwhelmed; just take it a little at a time.
As you study, things will start to make sense and you will begin to develop your own system. Change this system in your demo account until you are well. And you can’t do well with a system until you’re comfortable losing money on it. This is the reason.
Every trading system sometimes loses money. If the market works strangely, the system that worked so well throughout the year could lose 3, 5 or even 8 trades in a row. Unless you have thoroughly tested your system to know that it will make money in the long run, you are still not ready to trade for real money. So find a system and change it until you are comfortable with it.
3. Start small.
Believe me, eventually there comes a time when you are ready to trade for real money. Hobbyist dealers will start trading for real money after a few days or weeks of trading on a demo account. Real dealers, you know, those who will consistently make money, will make hundreds of transactions in a demo account before risking their hard-earned money.
But when you start acting live, start with the little one. You can make a lot of money in the foreign exchange market, but you can lose a lot of money even faster. Be patient, take your time and understand that profitable trading in the foreign exchange markets means that you are one of the few who really followed good advice on currency trading.