How to Learn Forex Trading
Forex Trading is an investment opportunity that I think will be an exciting new career with the potential to make more money over the course of a relatively short time. From my experience I can say that in some ways I was completely correct but in terms of the time frame to really get started I was very much wrong.
Your first year in Forex Trading is going to be very challenging and I thought I would share with you some advice and ideas on how to survive your first year in the Forex Market and what steps you can take to make the whole process easier.
Forex Training
The first year needs almost to be entirely about training. Forget trying your hand at the market and forget your dreams of thousands of dollars in income for the first year. In reality this is very unlikely to happen. If you’re relatively new to Forex trading you need to start learning everything you can to make sure that when you finally come to the markets you start making money.
In terms of training you’re going to need to start by reading – everything. You’re going to want to read all the top blogs in the field (here is a good start) and you’re going to want to get an intimate understanding of how the markets operate. Then you’re going to need to test your hand in a simulated situation. Thankfully there are a variety of Forex simulators available online and many of them are free to use (at least for a time) meaning you can get to grips with how the markets fluctuate. Only after you’ve had at least 6 months reading and practicing should you actually start investing in the markets and then only in small amounts.
Forex Financing
Many people start getting into Forex whilst they are still holding down a full time job and many people manage to practice around other commitments like family and part time work. I wasn’t quite so lucky and had only moderate savings and was facing 3 months of unemployment. Paying off debt interests using balance transfer credit cards served me very well in my first year of trading and I made up the shortfall with some part time work. I wouldn’t recommend this approach for everyone as its fairly risk intensive. It’s much better to ease yourself in as my first year saw a lot of expenses and very little returns on investments.
Trade Foreign Exchange
Eventually you’re going to want to Trade Foreign Exchange and actually start putting everything you’ve learnt into practice. Whilst it’s tempting to jump straight in you need to realize that this might not always be a good option and it’s often better to ease yourself in gradually. My first investments were each around 500 US Dollars and my returns were almost non-existent. When you start joining the markets be prepared to lose some money as you get the hang of things. Take it slow and learn everything you can. Finally stay away from bots and other spam sites as there are a lot of scams online so stick to reputable sites and don’t be tempted to buy quick fix products as 99% of the time they simply won’t work. Beyond that I wish you the best of luck in Forex Trading and hope you have a lot of fun.
2 Responses to “How to Learn Forex Trading”
Got something to say?
Is of most importance to first trade on a demo account in the case of a beginner in forex trading and only after a couple of months of developing a forext trading strategy on a demo account a real forex account should be used.
Forex Trading is like a university education, it requires about10 to 20 years to become a skillful fx trader and you have to be ready to accept it as a full time career. With that said, the forex broker that I use is Oanda. I use this broker mainly because it allows smaller lot sizes which allows me to be very flexible with my exposure.My recommendation- do not trade with less than 50k account. Do not trade live until you have risk capital (money that you will not need or regret losing) or minimum few years on paper accounts. research is a huge topic. Do not fall for technical analysis, it works in some situations, but the best bet would be to read the prices correctly via price patterns and timing. Do not trade during non farm payrolls or during tokyo and NY lunch hour. Trade during the overlap of US UK sessions for best liquidity. Watch for inflation levels, what central bankers say (and if what they are saying is just a warning or if they are serious about it).For example you would want to monitor the japanese central bank decisions right now because their is strong enough to make their bank sell it to lower the price to keep exports competitive. For CAD, watch for gold prices (oil is their major export). ect.FINALLY: the only way to make money in safely is with law of large numbers in terms of capitalization. You have to have an account upwards of 50 mil, so this is not a get rich quick thing. The real money lies in market making and dealing.