Most people who visit Internet have heard about Forex at least once. There’s truly a whole lot of information about it that came out last years. Forex means the Foreign Exchange market – and it’s really huge – about 3 trillions of dollars is exchanged daily on the planet! This number is often used in ads, and usually sounds like “it’s very big sum of money so it’s very easy to take a little piece of it”. Well, that’s not true, that’s just a marketing trick and nothing more. Without the proper knowledge and trading skills you won’t get any profits at all, you’ll just lose your money. So it all comes down to your skills. But how to get these skills? Where to start? In this article I’ll give you basic steps.
As a forex starter you should know the basic terminology. That’s where that forex beginner tutorials are really helpful for you! There are literally hundreds of them in the Internet and many are free. Just pick one or two and read them carefully. Many forex starters just don’t begin their trading. They keep consuming and absorbing information while their trading experience is almost zero. I recommend to study your first tutorial for some time but then begin your practical steps in forex trading.
Many tutorials and guides recommend Forex Starters to begin with mini trading accounts and practice trading with them a little bit. I agree with that point. Learn technical and fundamental analysis basics, begin to study forex indicators, pick yourself a currency cross and then just make some trial deals. Buy, sell and see what happens. Try to experiment with different currencies, charts, indicators etc. After you feel yourself comfortable with your trading platform, you need to pick yourself a trading strategy.
There are a lot of trading strategies offered to the public today. My advice is: don’t make things complicated, just pick some free simple trading strategy and try it on your demo account. Remember: only result matters, not the complexity of the system. If it’s too difficult, you’ll fail in mastering it and won’t make any profit. So my advice for your first trading system is: as simple as possible.
Ok, so what now? Testing. You need to test your strategy and, if it doesn’t prove itself, pick another one. A lot of traders recommend to test on paper or on demo accounts, while other say mini-forex is best for this purposes. I think that if you can put several hundred dollars into your first mini-account, just do it – believe me, the Real Money trading experience is totally different from paper/demo for the Forex Starter. A lot of Forex Starters did well on demo but failed after opening a real account so it’s better for you just to get used to real money. But don’t make your initial deposit too high, it’ll make no difference for your trade learning. My advice for the first mini-account is two hundred – one thousand dollars, that will be quite enough.