Forex Trading Tips For Beginners
This is a post that is dedicated to those of you who are new to this field and find yourself stuck in a situation where you do not know where to start. With the advancement of the internet, it does sometime create some problems for people known as “Information Overload“. In order to help those of you who are in this situation, I am writing this post to share with you the exact steps that I take to become a profitable trader today.
I was introduced to Forex by a person I met in a seminar and at that time, he has already quit his day job and trade for a living from home. After learning about the existence of forex trading, I decided to buy some books to read up and see if it is something that I can explore to bring in extra income.
Step 1: I bought a total of 4 books related to forex trading (see the 4 hours on the sidebar of this website) and spend sometime to go through them in detail. These 4 books give me a very strong foundation on what forex trading is all about and some of the important concepts that allows me to trade profitably today.
Step 2: After reading up the books, I decided to get myself a forex trading course so that it can help to shorten my learning curve. Indeed, buying yourself a course is something that you should not overlook as it is through the course that you can learn a good trading strategy that a successful trader is using.
Nowadays there are a lot of lousy courses in the market and you should be very careful when selecting the course to attend. If you have some budget constraint, you should consider getting yourself an online course which is much cheaper than an offline seminar. In fact, there are some very good online courses that I have bought which are much better than those thousand dollars seminars that I have attended.
Step 3: After attending the course that you have selected, you should move on to open a demo account so that you can try out and practice the strategy. This is one mistake that I have made when I first started trading a few years back. I jumped into live trading thinking that demo trading is not necessary.
In the end, I was wiped out of my trading account twice in a row costing me several thousands of dollars.
It is very important for you to practice the trading strategy that you have learned on a demo account so that you can fine tune it further to suit your trading style. You should at least trade six months of demo until you are able to produce consistent profit every month with that strategy.
After I was wiped out twice in a row, I started to practice demo for about five months and then I move on to the next step.
Step 4: I started a mini account with the forex broker of my choice and then started to put the strategy I am practicing to real use. Initially, I am not able to trade as profitable as my demo account. This is because I start to get nervous as I am trading with my real money.
This leads me to exit my trade once I have some profit and this causes me to trade with low risk reward ratio. It took me about 3 weeks to re-adjust myself to the mental state that I have during my demo trading.
Step 5: After I manage to trade profitably with mini account, I move on to open a standard account.
These 5 steps are what I have gone through as a beginner and I hope that this can be valuable information for you as well. If you are struggling in your trade or are totally new to trading, I strongly suggest you to follow the above steps and one day become a profitable trader.
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